Donegal Group (NASDAQ:DGICA) Major Shareholder Mutual Insurance Co Donegal Purchases 8,500 Shares

Key Points

• Mutual Insurance Co Donegal purchased 8,500 shares on May 5 at an average price of $16.50 (totaling $140,250), bringing its direct stake to 13,946,204 shares — a 0.06% increase in ownership valued at roughly $230.1 million.
• Donegal Group raised its quarterly dividend to $0.1925 (annualized $0.77), implying a yield of about 4.6%; the dividend is payable May 15 with an ex-dividend date of May 1.
• The company missed Q1 expectations, reporting EPS of $0.32 versus $0.40 estimated and revenue of $236.0 million versus $247.8 million estimated, while the stock trades with a P/E of 9.42 and a market cap near $621 million.

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 Tuesday, May 5th. The stock was acquired at an average price of $16.50 per share, with a total value of $140,250.00. Following the purchase, the insider directly owned 13,946,204 shares of the company's stock, valued at approximately $230,112,366. The trade was a 0.06% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Large shareholders that own 10% or more 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 Tuesday, March 3rd, Mutual Insurance Co Donegal acquired 9,000 shares of Donegal Group stock. The shares were acquired at an average cost of $17.63 per share, for a total transaction of $158,670.00.

Donegal Group Price Performance

NASDAQ DGICA opened at $16.79 on Thursday. Donegal Group, Inc. has a one year low of $16.11 and a one year high of $21.12. The stock has a 50-day moving average of $17.28 and a 200 day moving average of $18.65. The company has a market capitalization of $621.16 million, a price-to-earnings ratio of 9.42 and a beta of 0.01. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.39 and a current ratio of 0.39.

Donegal Group (NASDAQ:DGICA - Get Free Report) last posted its earnings results on Thursday, April 30th. The insurance provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.08). The company had revenue of $236.00 million for 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 10.41%. On average, sell-side analysts forecast that Donegal Group, Inc. will post 1.6 EPS for the current year.

Donegal Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a dividend of $0.1925 per share. This represents a $0.77 dividend on an annualized basis and a yield of 4.6%. This is a positive change from Donegal Group's previous quarterly dividend of $0.18. The ex-dividend date is Friday, May 1st. Donegal Group's payout ratio is currently 43.02%.

Analyst Upgrades and Downgrades

DGICA has been the subject of a number of research reports. Keefe, Bruyette & Woods decreased their target price on shares of Donegal Group from $19.00 to $18.00 and set a "market perform" rating for the company in a research note on Friday, May 1st. Weiss Ratings reissued a "buy (b)" rating on shares of Donegal Group in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $18.00.

Hedge Funds Weigh In On Donegal Group

Several institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp lifted its position in Donegal Group by 5.8% during the first quarter. Bank of New York Mellon Corp now owns 166,616 shares of the insurance provider's stock valued at $2,862,000 after purchasing an additional 9,075 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its position in Donegal Group by 44.9% during the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 36,749 shares of the insurance provider's stock worth $631,000 after acquiring an additional 11,386 shares during the period. QRG Capital Management Inc. purchased a new stake in Donegal Group in the first quarter valued at approximately $223,000. Pinnacle Wealth Management Advisory Group LLC boosted its holdings in shares of Donegal Group by 14.7% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 23,406 shares of the insurance provider's stock valued at $402,000 after acquiring an additional 3,006 shares during the last quarter. Finally, Hsbc Holdings PLC raised its stake in shares of Donegal Group by 26.3% during the 4th quarter. Hsbc Holdings PLC now owns 35,570 shares of the insurance provider's stock valued at $710,000 after buying an additional 7,409 shares during the last quarter. 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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