Donegal Group (NASDAQ:DGICA) Major Shareholder Acquires $142,460.00 in Stock

Key Points

• Major shareholder Mutual Insurance Co. Donegal bought 8,500 shares of Donegal Group at an average price of $16.76, spending $142,460. The purchase lifted its stake to 14,098,609 shares, according to an SEC filing.
• The shareholder has been actively buying shares throughout May, with multiple purchases of roughly 8,500 shares each at prices mostly between $16.86 and $17.48.
• Donegal Group recently raised its quarterly dividend to $0.1925 per share, while analysts currently rate the stock a consensus Hold with a $18.00 price target.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal purchased 8,500 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was acquired at an average cost of $16.76 per share, for a total transaction of $142,460.00. Following the completion of the purchase, the insider owned 14,098,609 shares of the company's stock, valued at approximately $236,292,686.84. This represents a 0.06% increase in their position. The acquisition was disclosed in a filing with the SEC, which is accessible through 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 Thursday, May 28th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was acquired at an average price of $16.98 per share, with a total value of $144,330.00.
• On Tuesday, May 26th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The stock was acquired at an average price 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 stock was purchased at an average cost of $17.40 per share, for a total transaction of $147,900.00.
• On Wednesday, May 20th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was acquired at an average cost of $17.43 per share, for a total transaction of $148,155.00.
• On Tuesday, May 19th, Mutual Insurance Co Donegal bought 8,328 shares of Donegal Group stock. The stock was purchased at an average price of $17.48 per share, for a total transaction of $145,573.44.
• On Monday, May 18th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average price of $17.33 per share, for a total transaction 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 price of $17.16 per share, for a total transaction of $145,860.00.
• On Wednesday, May 13th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was purchased 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 acquired 8,500 shares of Donegal Group stock. The shares were purchased at an average price of $17.18 per share, for a total transaction of $146,030.00.
• On Friday, May 8th, Mutual Insurance Co Donegal bought 8,077 shares of Donegal Group stock. The stock was bought at an average price of $17.13 per share, for a total transaction of $138,359.01.

Donegal Group Stock Performance

Shares of NASDAQ DGICA traded up $0.09 during midday trading on Tuesday, reaching $17.01. 185,005 shares of the company traded hands, compared to its average volume of 117,365. Donegal Group, Inc. has a 52 week low of $16.11 and a 52 week high of $21.06. The stock has a 50-day moving average price of $17.25 and a 200 day moving average price of $18.41. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39. The company has a market cap of $630.18 million, a price-to-earnings ratio of 9.50 and a beta of 0.01.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The insurance provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.40 by ($0.08). Donegal Group had a net margin of 6.77% and a return on equity of 10.31%. The company had revenue of $236.00 million for the quarter, compared to the consensus estimate of $247.83 million. Sell-side analysts anticipate that Donegal Group, Inc. will post 1.75 earnings per share for the current fiscal year.

Donegal Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were given a $0.1925 dividend. This represents a $0.77 annualized dividend and a yield of 4.5%. This is a boost from Donegal Group's previous quarterly dividend of $0.18. The ex-dividend date was Friday, May 1st. Donegal Group's dividend payout ratio (DPR) is presently 43.02%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on DGICA. Keefe, Bruyette & Woods dropped their price target on Donegal Group from $19.00 to $18.00 and set a "market perform" rating on the stock in a research note on Friday, May 1st. Weiss Ratings cut Donegal Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, May 11th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $18.00.

Institutional Trading of Donegal Group

Several large investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC grew its stake in shares of Donegal Group by 576.6% in the 4th 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 period. EverSource Wealth Advisors LLC grew its stake in shares of Donegal Group by 422.6% in 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 during the period. IFP Advisors Inc grew its stake in shares of Donegal Group by 1,377.6% in the 4th quarter. IFP Advisors Inc now owns 3,768 shares of the insurance provider's stock valued at $75,000 after buying an additional 3,513 shares during the period. CANADA LIFE ASSURANCE Co grew its stake in shares of Donegal Group by 31.6% in 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 during the period. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of 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 acquiring an additional 4,022 shares during the last quarter. Hedge funds and other 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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