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 Donegal Group stock in a transaction that occurred on Wednesday, August 27th. The stock was purchased at an average price of $17.49 per share, with a total value of $271,252.41. Following the transaction, the insider 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 document filed with the Securities & Exchange Commission, which is accessible through this link. Large shareholders that own at least 10% of a company's shares are required to disclose their sales and purchases with the SEC.

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

• On Friday, August 29th, Mutual Insurance Co Donegal bought 20,000 shares of Donegal Group stock. The stock was bought at an average price of $17.84 per share, with a total value of $356,800.00.
• On Thursday, August 28th, Mutual Insurance Co Donegal purchased 8,032 shares of Donegal Group stock. The shares were acquired at an average price of $17.61 per share, for a total transaction of $141,443.52.
• On Tuesday, August 26th, Mutual Insurance Co Donegal bought 15,815 shares of Donegal Group stock. The stock was purchased at an average price of $17.45 per share, for a total transaction of $275,971.75.

Donegal Group Stock Performance

NASDAQ DGICA traded up $0.33 during midday trading on Tuesday, hitting $18.22. The company had a trading volume of 113,376 shares, compared to its average volume of 129,030. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 0.06. The stock has a market cap of $665.21 million and a price-to-earnings ratio of 7.65. The firm has a fifty day simple moving average of $18.06 and a two-hundred day simple moving average of $18.50. Donegal Group, Inc. has a fifty-two week low of $14.06 and a fifty-two week high of $21.12.

Donegal Group (NASDAQ:DGICA - Get Free Report) last posted its quarterly earnings results on Thursday, July 24th. The insurance provider reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.07. The company had revenue of $233.81 million for the quarter, compared to analyst estimates of $247.21 million. Donegal Group had a net margin of 8.33% and a return on equity of 14.33%. Equities analysts forecast that Donegal Group, Inc. will post 1.2 earnings per share for the current fiscal year.

Donegal Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were paid a dividend of $0.1825 per share. The ex-dividend date was Friday, August 1st. This represents a $0.73 dividend on an annualized basis and a yield of 4.0%. Donegal Group's payout ratio is currently 30.67%.

Institutional Investors Weigh In On Donegal Group

Several hedge funds have recently added to or reduced their stakes in DGICA. Allworth Financial LP boosted its position in Donegal Group by 477.2% during the 2nd quarter. Allworth Financial LP now owns 2,961 shares of the insurance provider's stock worth $59,000 after buying an additional 2,448 shares during the period. EverSource Wealth Advisors LLC boosted its position in Donegal Group by 422.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider's stock worth $74,000 after buying an additional 2,975 shares during the period. Tower Research Capital LLC TRC boosted its position in Donegal Group by 443.9% during 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 period. CWM LLC boosted its position in Donegal Group by 78.0% during the 1st quarter. CWM LLC now owns 5,163 shares of the insurance provider's stock worth $101,000 after buying an additional 2,263 shares during the period. Finally, Raymond James Financial Inc. acquired a new stake in Donegal Group during the 2nd quarter worth approximately $101,000. 27.96% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

DGICA has been the subject of several analyst reports. Wall Street Zen downgraded shares of Donegal Group from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Janney Montgomery Scott raised shares of Donegal Group from a "neutral" rating to a "buy" rating in a report on Tuesday. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $18.00.

About Donegal Group

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.