Orin
HIGNYSE·Insurance - Diversified

The Hartford Financial Services Group, Inc. HIG

Market cap $34.1BP/E 8.1× trailingGross margin 43.9%Reports Mon 26 Oct, after the close
$124.52
−1.17 (−0.93%)live 11:25 ET
52-wk $120.33 – $146.07
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Orin's take
0.58conviction · moderate
Refreshed 24 Sep · take v6. A new filing or a print queues the next refresh.

HIG trades at a 36.8% P/E discount to the peer median of 12.82 despite FY2025 diluted EPS of $13.32 up 28.7% YoY and a 20.36% FCF margin, with RSI at 26.27 signaling an oversold entry after the pullback below both the 50-day ($138.33) and 200-day ($136.16) moving averages. Q2 2026 net income of $1.298B beat consensus EPS by 8.2%, and the smart-money score turned slightly positive at 0.0063 as of the quarter ended 2026-06-30, though the sharp sequential decline in Q2 gross profit to $2.513B from $3.228B in Q1 and revenue growth deceleration to 3.95% YoY warrant close monitoring of catastrophe loss trends.

What could go wrong

  • Catastrophe-driven margin compression. Q2 2026 gross profit fell to $2.513B from $3.228B in Q1 2026, a sequential drop that suggests elevated catastrophe or claims activity; sustained margin pressure would undermine the earnings growth thesis.
  • Technical downtrend. Price at $126.59 is below both the 50-day ($138.33) and 200-day ($136.16) moving averages with a bearish MACD histogram of -1.00 and RSI at 26.27, indicating a downtrend that could persist despite oversold conditions.
  • Revenue growth deceleration. Q2 2026 revenue growth slowed to 3.95% YoY from 7-8% in prior quarters; if pricing softness or competitive pressure continues, top-line momentum could falter further.
  • Persistent insider selling. Net insider dispositions of $77.3M over 24 months with 91 sales versus 75 acquisitions, including CEO Swift's disposition of 35,088 shares on 2026-08-07, signal limited insider conviction at current levels.

What would change my mind

Gross margin recovery. Q3 2026 quarterly gross margin recovers toward the FY2025 level of 46.08%, confirming catastrophe losses were transientbullish
Price reclaiming 200-day MA. HIG closes above $136.16 on sustained volume, reversing the technical downtrendbullish
Revenue growth re-acceleration. Q3 2026 revenue growth returns above 6% YoY, indicating pricing and volume momentum intactbullish
Operating margin deterioration. Quarterly operating margin remains below 10% for a second consecutive quarter, confirming structural margin erosionbearish

Where this comes from: peer_relative · fundamentals FY2025 and derived_metrics FY2025 · technicals as of 2026-09-23 · quarterly_results Q2 2026 and earnings_surprises. Orin's read on HIG; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$2.4B0.1% of fund
State Street$2.1B0.1% of fund
Vanguard Portfolio Management$2.1B0.1% of fund
Fmr$1.4B0.1% of fund
Geode Capital Management$1.1B0.1% of fund
Invesco$751.0M0.1% of fund

98 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 166 Form 4 filings, net −$77.3M. Of the 50 on hand, 0 were open-market purchases and 6 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Financial Services
MetricNowOwn medianSector
P/E8.1×10.2×21.6×
EV/EBITDA7.9×8.1×—
P/S1.19×1.13×—
P/B1.8×1.8×—

Its P/E sits below all 5 of the last 5 years (−2.01σ from its own mean).

What the price assumes

-9.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $5.8B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

42 firms · 2026-09-24
Consensus target

$151

$146 – $154 · +22% against today's price

How they rate it
  • 22 buy or overweight
  • 20 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 12.7× of 3 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
HIGThe Hartford Financial Services Group, Inc.$34B8.1×7.9×43.9%15.0%23%
ACGLArch Capital Group Ltd.$33B7.3×6.5×46.2%24.4%20%
AIGAmerican International Group, Inc.$40B13.6×6.3×38.1%11.1%7%
BRK-BBerkshire Hathaway Inc.$1.09T12.7×15.4×23.5%22.3%12%

The median is of the 3 peers listed above and nothing else — check it against the column. This company trades 36.7% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 23.0×FY25 10.2×

What its sector has traded at

Financial Services
FY14 29.6×FY26 23.8×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$267$130.38 · +105%2026-06-10
Levered DCF$549$130.38 · +321%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $124.52
52-week range$120 – $146
Analyst targets$146 – $154
Standard DCF$267 as of 2026-06-10, when it was $130.38
Levered DCF$549 as of 2026-06-10, when it was $130.38
At own 5y-median P/E (10×)$159
At 5y P/E range (10–14×)$154 – $211
At sector P/E (22×)$336

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.