Donegal Group (NASDAQ:DGICA) Shares Pass Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Donegal Group shares moved above their 200-day moving average, reaching $19.06 before closing at $18.46, while the stock’s 200-day average stood at $17.89.
• Analysts have a “Moderate Buy” consensus with a $20 price target; Keefe, Bruyette & Woods raised its target to $20, and the company recently beat quarterly earnings and revenue estimates.
• Donegal Group maintains an annualized $0.77 dividend, yielding about 4.2%. Recent insider activity included substantial share sales by a senior vice president and a director, while institutional investors own nearly 28% of the stock.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report)'s stock price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $17.89 and traded as high as $19.06. Donegal Group shares last traded at $18.46, with a volume of 89,529 shares trading hands.

Analyst Ratings Changes

Several research firms have recently commented on DGICA. Keefe, Bruyette & Woods lifted their price target on Donegal Group from $18.00 to $20.00 and gave the stock a "market perform" rating in a report on Wednesday, July 8th. Weiss Ratings raised shares of Donegal Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, July 28th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Donegal Group presently has a consensus rating of "Moderate Buy" and a consensus target price of $20.00.

Donegal Group Trading Down 1.5%

The stock has a market cap of $1.22 billion, a PE ratio of 9.56 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. The company's 50-day moving average price is $18.61 and its 200 day moving average price is $17.89.

Donegal Group (NASDAQ:DGICA - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The insurance provider reported $0.53 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.11. The firm had revenue of $241.12 million for the quarter, compared to analysts' expectations of $231.53 million. Donegal Group had a return on equity of 10.65% and a net margin of 7.38%. On average, sell-side analysts forecast that Donegal Group, Inc. will post 1.75 EPS for the current fiscal year.

Donegal Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a $0.1925 dividend. The ex-dividend date was Friday, July 31st. This represents a $0.77 dividend on an annualized basis and a yield of 4.2%. Donegal Group's payout ratio is currently 39.90%.

Insiders Place Their Bets

In related news, SVP Noland Rone Deas, Jr. sold 24,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.47, for a total value of $467,280.00. Following the sale, the senior vice president directly owned 3,523 shares in the company, valued at approximately $68,592.81. The trade was a 87.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director David Charles King sold 9,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $19.33, for a total transaction of $173,970.00. Following the completion of the sale, the director owned 3,700 shares in the company, valued at approximately $71,521. This trade represents a 70.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders acquired 90,082 shares of company stock worth $1,594,851 and sold 51,000 shares worth $995,310. Insiders own 2.75% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DGICA. Royce & Associates LP raised its stake in shares of Donegal Group by 579.4% in the 4th quarter. Royce & Associates LP now owns 169,853 shares of the insurance provider's stock valued at $3,394,000 after acquiring an additional 144,853 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of Donegal Group by 117.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 236,124 shares of the insurance provider's stock worth $4,718,000 after purchasing an additional 127,470 shares during the period. Two Sigma Investments LP boosted its position in shares of Donegal Group by 139.8% during the 3rd quarter. Two Sigma Investments LP now owns 152,432 shares of the insurance provider's stock worth $2,956,000 after purchasing an additional 88,878 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in shares of Donegal Group by 41.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 276,237 shares of the insurance provider's stock worth $4,746,000 after purchasing an additional 80,614 shares during the period. Finally, Qube Research & Technologies Ltd increased its holdings in Donegal Group by 157.1% in the 2nd quarter. Qube Research & Technologies Ltd now owns 131,574 shares of the insurance provider's stock valued at $2,635,000 after purchasing an additional 80,395 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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