Donegal Group (NASDAQ:DGICA) Major Shareholder Buys $166,200.00 in Stock

Key Points

• Donegal Group major shareholder Mutual Insurance Co Donegal bought 10,000 shares on June 3 at an average price of $16.62, spending $166,200. The purchase lifted its stake to about 14.1 million shares.
• The shareholder has been actively accumulating stock, with multiple earlier purchases in late May and early June at prices mostly between $16.76 and $17.48 per share.
• Donegal Group recently raised its quarterly dividend to $0.1925 per share, while analysts currently rate the stock a Hold with a consensus price target of $18.00.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal bought 10,000 shares of the firm's stock in a transaction on 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 transaction, the insider directly 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Major shareholders that own more than 10% of a company's shares are required to disclose their transactions with the SEC.

Mutual Insurance Co Donegal also recently made the following trade(s):

• On Monday, June 1st, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The stock was purchased at an average cost of $16.76 per share, for a total transaction of $142,460.00.
• On Thursday, May 28th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was purchased 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 acquired 8,500 shares of Donegal Group stock. The shares were purchased 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 bought 8,500 shares of Donegal Group stock. The stock was purchased at an average price of $17.40 per share, for a total transaction of $147,900.00.
• On Wednesday, May 20th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was purchased at an average price 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 shares were purchased 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 shares were purchased at an average price of $17.33 per share, with a total value of $147,305.00.
• On Friday, May 15th, Mutual Insurance Co Donegal acquired 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 shares were 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 bought 8,500 shares of Donegal Group stock. The shares were acquired at an average price of $17.18 per share, with a total value of $146,030.00.

Donegal Group Stock Performance

DGICA opened at $16.54 on Thursday. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05. The stock's 50 day moving average price is $17.24 and its two-hundred day moving average price is $18.37. The firm has a market capitalization of $612.81 million, a P/E ratio of 9.24 and a beta of 0.01. Donegal Group, Inc. has a 12-month low of $16.11 and a 12-month high of $21.06.

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

Donegal Group Increases Dividend

The business also recently announced 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 was Friday, May 1st. This is a boost from Donegal Group's previous quarterly dividend of $0.18. This represents a $0.77 annualized dividend and a dividend yield of 4.7%. Donegal Group's dividend payout ratio is 43.02%.

Wall Street Analysts Forecast Growth

DGICA has been the topic of several research reports. Keefe, Bruyette & Woods lowered 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 lowered Donegal Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, May 11th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $18.00.

Hedge Funds Weigh In On Donegal Group

A number of hedge funds and other institutional investors have recently made changes to their positions in DGICA. Smartleaf Asset Management LLC raised its position in Donegal Group by 576.6% in 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 in the last quarter. 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 purchasing 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 purchasing an additional 3,513 shares during the period. CANADA LIFE ASSURANCE Co raised its holdings 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 worth $75,000 after buying an additional 896 shares in the last quarter. Finally, Tower Research Capital LLC TRC raised 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 buying an additional 4,022 shares in the last quarter. 27.96% of the stock is owned by institutional investors.

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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