Donegal Group (NASDAQ:DGICA) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Donegal Group from “Hold” to “Strong Sell,” while other analysts’ views resulted in an overall “Hold” consensus and an average price target of $20.
• Donegal Group shares opened at $18.73, down 0.7%, with a market capitalization of approximately $695 million. The insurer exceeded quarterly expectations, reporting $0.53 EPS versus the $0.42 consensus and revenue of $241.12 million.
• Insider selling included significant share disposals by an insider and the CFO, although insiders collectively bought more shares than they sold over the past three months; institutional investors own about 27.96% of the company.

Donegal Group (NASDAQ:DGICA - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Thursday, Zacks reports.

DGICA has been the subject of a number of other research reports. Keefe, Bruyette & Woods raised their price target on shares of Donegal Group from $18.00 to $20.00 and gave the stock a "market perform" rating in a report on Wednesday, July 8th. Weiss Ratings upgraded Donegal Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, August 28th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Donegal Group has an average rating of "Hold" and an average target price of $20.00.

Donegal Group Stock Down 0.7%

Shares of NASDAQ:DGICA opened at $18.73 on Thursday. Donegal Group has a 52-week low of $16.11 and a 52-week high of $21.06. The stock has a market cap of $695.26 million, a P/E ratio of 9.70 and a beta of -0.01. The business has a fifty day moving average of $19.01 and a two-hundred day moving average of $18.02. 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 released its quarterly earnings data on Thursday, July 30th. The insurance provider reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.11. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%. The firm had revenue of $241.12 million during the quarter, compared to analysts' expectations of $231.53 million. On average, research analysts expect that Donegal Group will post 1.7 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Kevin Burke sold 24,000 shares of the business's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $19.23, for a total value of $461,520.00. Following the sale, the insider directly owned 13,870 shares of the company's stock, valued at approximately $266,720.10. The trade was a 63.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Jeffrey Miller sold 21,000 shares of the business's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $19.23, for a total transaction of $403,830.00. Following the completion of the sale, the chief financial officer directly owned 27,176 shares in the company, valued at $522,594.48. This trade represents a 43.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have acquired 220,437 shares of company stock valued at $4,218,669 and have sold 111,108 shares valued at $2,153,119. 2.75% of the stock is owned by corporate insiders.

Institutional Trading of Donegal Group

Several institutional investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc lifted its stake in Donegal Group by 1,377.6% during the fourth quarter. IFP Advisors Inc now owns 3,768 shares of the insurance provider's stock worth $75,000 after purchasing an additional 3,513 shares in the last quarter. Fidelis Capital Partners LLC purchased a new position in shares of Donegal Group during the fourth quarter worth $204,000. Allianz Asset Management GmbH acquired a new stake in shares of Donegal Group in the second quarter valued at $220,000. Amundi acquired a new stake in shares of Donegal Group in the first quarter valued at $206,000. Finally, Hazlett Burt & Watson Inc. raised its holdings in shares of Donegal Group by 18.3% in the 4th quarter. Hazlett Burt & Watson Inc. now owns 12,936 shares of the insurance provider's stock valued at $258,000 after buying an additional 2,000 shares during the period. Institutional investors and hedge funds own 27.96% of the company's stock.

About Donegal Group

Donegal Group Inc is an insurance holding company that provides property and casualty insurance through a network of independent insurance agents. The company operates through regional insurance subsidiaries affiliated with Donegal Mutual Insurance Company and serves individuals, families, farms, and businesses.

Its personal insurance products generally include automobile, homeowners, dwelling fire, renters, and farmowners coverage. Donegal Group also offers commercial insurance, including businessowners policies, commercial automobile, commercial package, workers' compensation, general liability, and related coverages.

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