Donegal Group (NASDAQ:DGICA) Stock Crosses Above 200 Day Moving Average - What's Next?

Key Points

• Donegal Group shares rose above their 200-day moving average during Wednesday’s trading, reaching as high as $18.75 before last trading around $18.02.
• Analyst sentiment remains cautious: Weiss Ratings downgraded the stock to “hold,” while KBW raised its target price to $20; the consensus rating is now “Hold” with an average target of $20.00.
• Latest earnings missed expectations, with quarterly EPS of $0.32 versus the $0.40 estimate and revenue of $236 million below forecasts, even as insiders and institutional investors continued to hold or add to positions.

Shares of Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $17.97 and traded as high as $18.75. Donegal Group shares last traded at $18.02, with a volume of 145,401 shares.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on DGICA. Weiss Ratings lowered shares of Donegal Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday. Keefe, Bruyette & Woods boosted their target price on Donegal Group from $18.00 to $20.00 and gave the company a "market perform" rating in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $20.00.

Donegal Group Stock Performance

The firm has a market capitalization of $667.64 million and a P/E ratio of 10.07. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39. The firm has a 50-day moving average price of $17.76 and a two-hundred day moving average price of $17.97.

Donegal Group (NASDAQ:DGICA - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The insurance provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates 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 10.31%. On average, analysts forecast that Donegal Group, Inc. will post 1.75 EPS for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder Mutual Insurance Co Donegal acquired 10,000 shares of Donegal Group stock in a transaction on Wednesday, June 3rd. The shares were bought at an average cost of $16.62 per share, for a total transaction of $166,200.00. Following the acquisition, the insider directly owned 14,117,109 shares of the company's stock, valued at $234,626,351.58. This trade represents a 0.07% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. In the last quarter, insiders acquired 139,487 shares of company stock worth $2,392,488. Company insiders own 2.75% of the company's stock.

Hedge Funds Weigh In On Donegal Group

Institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its stake in Donegal Group by 0.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,737,266 shares of the insurance provider's stock worth $29,846,000 after acquiring an additional 7,345 shares during the period. Vanguard Group Inc. increased its position in Donegal Group by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 1,008,217 shares of the insurance provider's stock valued at $19,549,000 after purchasing an additional 39,181 shares during the period. Geode Capital Management LLC raised its holdings in shares of Donegal Group by 2.3% in the 4th quarter. Geode Capital Management LLC now owns 534,703 shares of the insurance provider's stock valued at $10,685,000 after purchasing an additional 11,891 shares in the last quarter. Renaissance Technologies LLC raised its holdings in shares of Donegal Group by 5.8% in the 1st quarter. Renaissance Technologies LLC now owns 392,711 shares of the insurance provider's stock valued at $6,747,000 after purchasing an additional 21,500 shares in the last quarter. Finally, State Street Corp lifted its position in shares of Donegal Group by 0.8% in the 4th quarter. State Street Corp now owns 391,729 shares of the insurance provider's stock worth $7,827,000 after purchasing an additional 3,290 shares during the period. 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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