Donegal Group (NASDAQ:DGICA) Announces Earnings Results

Key Points

• Donegal Group reported Q1 EPS of $0.32, missing analysts' consensus of $0.60, with a return on equity of 12.81% and a net margin of 8.11%.
• The company raised its quarterly dividend to $0.1925 (annualized $0.77), implying a 4.6% yield and a payout ratio of about 35%, with an ex-dividend date of May 1.
• Shares traded down to $16.82 on higher-than-average volume; market cap is roughly $622M with a P/E of 7.68, while an EVP sold 9,000 shares the same day a major shareholder bought 9,000, and institutional ownership stands near 27.96%.

Donegal Group (NASDAQ:DGICA - Get Free Report) announced its quarterly earnings data on Thursday. The insurance provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.60 by ($0.28), FiscalAI reports. Donegal Group had a return on equity of 12.81% and a net margin of 8.11%.

Donegal Group Stock Performance

Donegal Group stock traded down $0.81 during midday trading on Thursday, reaching $16.82. 178,976 shares of the company traded hands, compared to its average volume of 118,773. The firm has a market capitalization of $622.39 million, a price-to-earnings ratio of 7.68 and a beta of 0.05. The business has a 50 day moving average of $17.32 and a two-hundred day moving average of $18.71. Donegal Group has a 12 month low of $16.43 and a 12 month high of $21.12. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39.

Donegal Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a dividend of $0.1925 per share. This represents a $0.77 dividend on an annualized basis and a yield of 4.6%. This is a positive change from Donegal Group's previous quarterly dividend of $0.18. The ex-dividend date is Friday, May 1st. Donegal Group's payout ratio is currently 35.16%.

Analyst Upgrades and Downgrades

DGICA has been the topic of several analyst reports. Keefe, Bruyette & Woods dropped their target price on shares of Donegal Group from $19.50 to $19.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. Weiss Ratings reiterated a "buy (b)" rating on shares of Donegal Group in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $19.00.

Insider Buying and Selling

In related news, EVP William Daniel Delamater sold 9,000 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $17.63, for a total transaction of $158,670.00. Following the transaction, the executive vice president owned 2,012 shares in the company, valued at $35,471.56. This represents a 81.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Mutual Insurance Co Donegal acquired 9,000 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were bought at an average price of $17.63 per share, for a total transaction of $158,670.00. Following the transaction, the insider owned 13,937,704 shares of the company's stock, valued at $245,721,721.52. This trade represents a 0.06% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.75% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC increased its holdings in 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 buying an additional 2,341 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in 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 buying an additional 2,975 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in 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 buying an additional 896 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in 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 buying an additional 4,022 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in Donegal Group during the second quarter valued at approximately $101,000. Institutional investors own 27.96% of the company's stock.

About Donegal Group

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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