Donegal Group (NASDAQ:DGICA) Shares Pass Above 200-Day Moving Average - Time to Sell?

Key Points

• Donegal Group's stock price recently crossed above its 200-day moving average, reaching a high of $19.53 before settling at $19.25.
• Analysts have mixed ratings for the stock, with one upgrading it to a strong-buy and others maintaining hold or buy ratings, resulting in a consensus rating of "Buy" with a price target of $18.00.
• The company announced a quarterly dividend of $0.1825 per share, representing an annualized dividend yield of 3.8% with a payout ratio of 30.67%.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $18.81 and traded as high as $19.53. Donegal Group shares last traded at $19.25, with a volume of 151,080 shares.

Analyst Ratings Changes

A number of analysts have recently issued reports on DGICA shares. Wall Street Zen cut Donegal Group from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Janney Montgomery Scott upgraded Donegal Group from a "neutral" rating to a "buy" rating in a report on Tuesday, September 2nd. Finally, Zacks Research upgraded Donegal Group from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $18.00.

Donegal Group Price Performance

The stock has a 50 day moving average price of $18.17 and a two-hundred day moving average price of $18.81. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.40 and a current ratio of 0.40. The company has a market capitalization of $702.82 million and a PE ratio of 8.09.

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 for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $247.21 million. Equities analysts forecast that Donegal Group, Inc. will post 1.2 earnings per share for the current year.

Donegal Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 1st were paid a $0.1825 dividend. This represents a $0.73 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date of this dividend was Friday, August 1st. Donegal Group's dividend payout ratio (DPR) is presently 30.67%.

Insider Buying and Selling at Donegal Group

In other Donegal Group news, major shareholder Mutual Insurance Co Donegal bought 20,000 shares of the stock in a transaction on Friday, August 29th. The shares were purchased at an average price of $17.84 per share, with a total value of $356,800.00. Following the acquisition, the insider directly owned 13,500,977 shares of the company's stock, valued at $240,857,429.68. This represents a 0.15% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Over the last quarter, insiders purchased 212,958 shares of company stock valued at $3,965,746. 6.63% of the stock is currently owned by company insiders.

Institutional Trading of Donegal Group

Institutional investors have recently modified their holdings of the company. ProShare Advisors LLC bought a new position in shares of Donegal Group during the 2nd quarter worth approximately $6,343,000. CSM Advisors LLC bought a new position in Donegal Group in the 2nd quarter valued at $3,699,000. American Century Companies Inc. raised its position in Donegal Group by 294.1% in the 2nd quarter. American Century Companies Inc. now owns 149,611 shares of the insurance provider's stock valued at $2,996,000 after purchasing an additional 111,647 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its position in Donegal Group by 33.0% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 356,154 shares of the insurance provider's stock valued at $7,132,000 after purchasing an additional 88,462 shares during the last quarter. Finally, Teacher Retirement System of Texas raised its position in Donegal Group by 78.7% in the 2nd quarter. Teacher Retirement System of Texas now owns 191,376 shares of the insurance provider's stock valued at $3,832,000 after purchasing an additional 84,263 shares during the last quarter. Institutional investors and hedge funds own 27.96% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.