Donegal Group (NASDAQ:DGICA) Major Shareholder Buys $271,252.41 in Stock

Key Points

• Mutual Insurance Co Donegal, a major shareholder of Donegal Group, purchased 15,509 shares at an average price of $17.49, totaling approximately $271,252.41.
• Donegal Group recently declared a quarterly dividend of $0.1825 per share, representing an annualized yield of 4.2% and a dividend payout ratio of 30.67%.
• Wall Street analysts have downgraded Donegal Group's rating from "buy" to "hold", with an average target price of $18.00.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal purchased 15,509 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The shares were acquired at an average price of $17.49 per share, for a total transaction of $271,252.41. Following the completion of the purchase, the insider directly owned 13,472,945 shares in the company, valued at $235,641,808.05. This represents a 0.12% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Major shareholders that own at least 10% of a company's stock are required to disclose their sales and purchases with the SEC.

Donegal Group Stock Performance

Shares of DGICA stock opened at $17.56 on Thursday. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.06. The firm's 50 day moving average is $18.14 and its 200 day moving average is $18.40. The stock has a market capitalization of $641.12 million, a P/E ratio of 7.38 and a beta of 0.01. Donegal Group, Inc. has a 12 month low of $14.06 and a 12 month high of $21.12.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its earnings results on Thursday, July 24th. The insurance provider reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.07. Donegal Group had a return on equity of 14.33% and a net margin of 8.33%.The company had revenue of $233.81 million during the quarter, compared to analysts' expectations of $247.21 million. On average, sell-side analysts anticipate that Donegal Group, Inc. will post 1.2 earnings per share for the current year.

Donegal Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 1st were given a dividend of $0.1825 per share. This represents a $0.73 annualized dividend and a dividend yield of 4.2%. The ex-dividend date was Friday, August 1st. Donegal Group's dividend payout ratio (DPR) is currently 30.67%.

Institutional Investors Weigh In On Donegal Group

Several institutional investors have recently modified their holdings of DGICA. Wealth Enhancement Advisory Services LLC grew its position in Donegal Group by 24.1% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 13,875 shares of the insurance provider's stock valued at $272,000 after buying an additional 2,695 shares during the last quarter. GAMMA Investing LLC raised its position in Donegal Group by 4,607.4% in the first quarter. GAMMA Investing LLC now owns 14,075 shares of the insurance provider's stock worth $276,000 after acquiring an additional 13,776 shares in the last quarter. Two Sigma Investments LP raised its position in Donegal Group by 87.6% in the fourth quarter. Two Sigma Investments LP now owns 89,437 shares of the insurance provider's stock worth $1,384,000 after acquiring an additional 41,763 shares in the last quarter. XTX Topco Ltd raised its position in Donegal Group by 56.8% in the first quarter. XTX Topco Ltd now owns 16,387 shares of the insurance provider's stock worth $322,000 after acquiring an additional 5,935 shares in the last quarter. Finally, D. E. Shaw & Co. Inc. acquired a new stake in shares of Donegal Group during the 4th quarter valued at approximately $704,000. 27.96% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen lowered Donegal Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. One analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $18.00.

Donegal Group Company Profile

Donegal Group Inc, an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property.

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