Donegal Group (NASDAQ:DGICA) Issues Earnings Results

Key Points

• Donegal Group exceeded earnings expectations, reporting quarterly EPS of $0.53 versus the $0.46 consensus estimate. The company posted a 10.31% return on equity and a 6.77% net margin.
• The company declared a quarterly dividend of $0.1925, equating to $0.77 annually and a 3.9% yield. The dividend is payable August 14 to shareholders of record as of July 31.
• Shares recently traded at $19.70, while analysts maintained a “Moderate Buy” consensus with an average price target of $20.00; insiders and institutional investors have also recently increased their holdings.

Donegal Group (NASDAQ:DGICA - Get Free Report) announced its quarterly earnings results on Thursday. The insurance provider reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.46 by $0.07, Zacks reports. Donegal Group had a return on equity of 10.31% and a net margin of 6.77%.

Donegal Group Price Performance

DGICA traded up $0.39 on Thursday, reaching $19.70. The company had a trading volume of 92,145 shares, compared to its average volume of 125,958. Donegal Group has a 52-week low of $16.11 and a 52-week high of $21.06. The company has a market cap of $729.92 million and a price-to-earnings ratio of 11.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.39 and a current ratio of 0.39. The business has a 50 day simple moving average of $18.07 and a 200 day simple moving average of $17.89.

Donegal Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be given a $0.1925 dividend. This represents a $0.77 annualized dividend and a dividend yield of 3.9%. The ex-dividend date is Friday, July 31st. Donegal Group's dividend payout ratio is 43.02%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on DGICA. Weiss Ratings upgraded shares of Donegal Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday. Keefe, Bruyette & Woods upped their target price 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. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $20.00.

Insider Buying and Selling

In related news, major shareholder Mutual Insurance Co Donegal purchased 10,000 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were purchased at an average price of $16.62 per share, with a total value of $166,200.00. Following the acquisition, the insider directly owned 14,117,109 shares of the company's stock, valued at approximately $234,626,351.58. This represents a 0.07% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last three months, insiders have purchased 139,487 shares of company stock valued at $2,392,488. 2.75% of the stock is owned by insiders.

Institutional Investors Weigh In On Donegal Group

A number of large investors have recently added to or reduced their stakes in DGICA. Smartleaf Asset Management LLC lifted its stake 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 worth $55,000 after purchasing an additional 2,341 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Donegal Group by 422.6% during the 2nd 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 in the last quarter. CANADA LIFE ASSURANCE Co raised its holdings in shares of Donegal Group by 31.6% during the 4th 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 in the last quarter. Tower Research Capital LLC TRC lifted its position in Donegal Group by 443.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,928 shares of the insurance provider's stock worth $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 in the second quarter worth approximately $101,000. Hedge funds and other institutional investors own 27.96% of the company's stock.

Donegal Group Company Profile

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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