Donegal Group (NASDAQ:DGICB) Issues Quarterly Earnings Results, Misses Expectations By $0.15 EPS

Key Points

• Donegal Group reported Q earnings of $0.30 EPS, missing the consensus by $0.15 (consensus $0.45); the company posted a return on equity of 12.81% and a net margin of 8.11%.
• The board raised the quarterly dividend to $0.175 (from $0.17), an annualized $0.70 representing a 3.6% yield and a payout ratio of 32.2%, payable May 15 with an ex-dividend date of May 1.
• Shares fell to $19.25 on the report; Donegal has a market cap of $712.3M and a PE of 9.39, while analysts maintain a consensus Hold and Raymond James disclosed a small new stake (~5,231 shares).

Donegal Group (NASDAQ:DGICB - Get Free Report) issued its quarterly earnings results on Thursday. The insurance provider reported $0.30 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.15), Zacks reports. Donegal Group had a return on equity of 12.81% and a net margin of 8.11%.

Donegal Group Price Performance

NASDAQ DGICB traded down $0.50 on Thursday, hitting $19.25. The company had a trading volume of 538 shares, compared to its average volume of 1,256. The company has a market capitalization of $712.25 million, a PE ratio of 9.39 and a beta of 0.04. The company's fifty day moving average price is $17.17 and its 200-day moving average price is $16.61. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39. Donegal Group has a 12-month low of $13.84 and a 12-month high of $20.46.

Donegal Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be issued a $0.175 dividend. This represents a $0.70 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Friday, May 1st. This is a boost from Donegal Group's previous quarterly dividend of $0.17. Donegal Group's payout ratio is presently 32.20%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Donegal Group in a report on Friday, March 27th. One analyst has rated the stock with a Hold rating, According to MarketBeat, the company currently has a consensus rating of "Hold".

Institutional Investors Weigh In On Donegal Group

A hedge fund recently bought a new stake in Donegal Group stock. Raymond James Financial Inc. bought a new position in shares of Donegal Group, Inc. (NASDAQ:DGICB - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 5,231 shares of the insurance provider's stock, valued at approximately $93,000. 1.19% of the stock is currently owned by institutional investors and hedge funds.

About Donegal Group

Donegal Group Inc, an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four 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.

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