Key Points
- Mutual Insurance Co Donegal, a major shareholder, bought 10,000 shares of Donegal Group at $16.62 each, bringing its stake to more than 14.1 million shares. The filing comes after several other recent insider purchases by the same shareholder.
- Donegal Group’s stock was trading near $16.72, close to its 52-week low of $16.11, and below its 50-day and 200-day moving averages. The company also carries a modest valuation with a P/E ratio of 9.34 and very low beta of 0.01.
- The insurer recently raised its quarterly dividend to $0.1925 per share, implying an annualized yield of 4.6%. However, its latest earnings report missed analyst estimates on both EPS and revenue, and analysts currently rate the stock a consensus Hold with an $18 price target.
Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal acquired 10,000 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were bought at an average cost of $16.62 per share, with a total value of $166,200.00. Following the purchase, the insider owned 14,117,109 shares of the company's stock, valued at approximately $234,626,351.58. This trade represents a 0.07% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Major shareholders that own more than 10% of a company's stock are required to disclose their sales and purchases with the SEC.
Mutual Insurance Co Donegal also recently made the following trade(s):
- On Monday, June 1st, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average cost of $16.76 per share, with a total value of $142,460.00.
- On Thursday, May 28th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average cost of $16.98 per share, with a total value of $144,330.00.
- On Tuesday, May 26th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average cost of $17.33 per share, with a total value of $147,305.00.
- On Friday, May 22nd, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average cost of $17.40 per share, with a total value of $147,900.00.
- On Wednesday, May 20th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average cost of $17.43 per share, with a total value of $148,155.00.
- On Tuesday, May 19th, Mutual Insurance Co Donegal purchased 8,328 shares of Donegal Group stock. The stock was acquired at an average cost of $17.48 per share, with a total value of $145,573.44.
- On Monday, May 18th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The stock was acquired at an average cost of $17.33 per share, with a total value of $147,305.00.
- On Friday, May 15th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The stock was acquired at an average cost of $17.16 per share, with a total value of $145,860.00.
- On Wednesday, May 13th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The stock was acquired at an average cost of $16.86 per share, with a total value of $143,310.00.
- On Monday, May 11th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The stock was acquired at an average cost of $17.18 per share, with a total value of $146,030.00.
Donegal Group Stock Performance
Shares of DGICA stock opened at $16.72 on Friday. The stock has a fifty day moving average of $17.23 and a 200 day moving average of $18.35. Donegal Group, Inc. has a 52 week low of $16.11 and a 52 week high of $21.06. The firm has a market capitalization of $619.55 million, a price-to-earnings ratio of 9.34 and a beta of 0.01. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05.
Donegal Group (NASDAQ:DGICA - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The insurance provider reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($0.08). Donegal Group had a return on equity of 10.31% and a net margin of 6.77%.The business had revenue of $236.00 million during the quarter, compared to analysts' expectations of $247.83 million. As a group, research analysts expect that Donegal Group, Inc. will post 1.75 earnings per share for the current year.
Donegal Group Increases Dividend
The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were paid a $0.1925 dividend. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Donegal Group's previous quarterly dividend of $0.18. This represents a $0.77 dividend on an annualized basis and a yield of 4.6%. Donegal Group's payout ratio is 43.02%.
Hedge Funds Weigh In On Donegal Group
Institutional investors and hedge funds have recently modified their holdings of the stock. Smartleaf Asset Management LLC increased its holdings in shares of Donegal Group by 576.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the insurance provider's stock valued at $55,000 after acquiring an additional 2,341 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Donegal Group by 422.6% during the second quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider's stock valued at $74,000 after acquiring an additional 2,975 shares in the last quarter. IFP Advisors Inc increased its holdings in shares of Donegal Group by 1,377.6% during the fourth quarter. IFP Advisors Inc now owns 3,768 shares of the insurance provider's stock valued at $75,000 after acquiring an additional 3,513 shares in the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in shares of Donegal Group by 31.6% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 3,733 shares of the insurance provider's stock valued at $75,000 after acquiring an additional 896 shares in the last quarter. Finally, Tower Research Capital LLC TRC increased its holdings in shares of Donegal Group by 443.9% during the second quarter. Tower Research Capital LLC TRC now owns 4,928 shares of the insurance provider's stock valued at $99,000 after acquiring an additional 4,022 shares in the last quarter. 27.96% of the stock is currently owned by institutional investors.
Analysts Set New Price Targets
A number of equities analysts have issued reports on DGICA shares. Weiss Ratings downgraded Donegal Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, May 11th. Keefe, Bruyette & Woods decreased their price objective on Donegal Group from $19.00 to $18.00 and set a "market perform" rating for the company in a report on Friday, May 1st. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $18.00.
Check Out Our Latest Report on DGICA
About Donegal Group
(
Get Free Report)
Donegal Group, Inc (NASDAQ: DGICA) is a property and casualty insurance holding company headquartered in Marietta, Pennsylvania. Through a network of independent agencies, the company offers a suite of personal and commercial insurance products. Its underwriting subsidiaries provide homeowners, automobile, farmowner, commercial multi-peril, surety and umbrella coverages designed to meet the needs of individuals, families and businesses.
The company's origins date back to 1925 with the formation of Donegal Mutual Insurance Company to serve rural communities in Pennsylvania.
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