Donegal Group (NASDAQ:DGICB) Shares Down 12% - Here's What Happened

Key Points

• Donegal Group shares fell 12% on Thursday, trading as low as $20.85 after a sharp surge in volume to nearly 100,000 shares, far above its normal session average.
• The drop comes after the company reported second-quarter EPS of $0.30, missing analyst expectations of $0.45, while revenue also came in below estimates at $236 million.
• Donegal Group also announced a quarterly dividend of $0.175 per share, payable August 14, which implies an annual yield of about 3.2%.

Shares of Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) fell 12% during trading on Thursday . The stock traded as low as $20.85 and last traded at $20.23. 99,678 shares were traded during mid-day trading, an increase of 2,188% from the average session volume of 4,356 shares. The stock had previously closed at $22.98.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Donegal Group in a research report on Wednesday, June 24th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Donegal Group currently has a consensus rating of "Hold".

Donegal Group Stock Down 6.0%

The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05. The stock's 50-day simple moving average is $21.01 and its 200 day simple moving average is $18.50. The firm has a market cap of $800.47 million, a P/E ratio of 12.78 and a beta of 0.04.

Donegal Group (NASDAQ:DGICB - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The insurance provider reported $0.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.45 by ($0.15). Donegal Group had a net margin of 6.77% and a return on equity of 10.31%. The business had revenue of $236.00 million during the quarter, compared to analyst estimates of $247.83 million.

Donegal Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be given a dividend of $0.175 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $0.70 annualized dividend and a dividend yield of 3.2%. Donegal Group's dividend payout ratio (DPR) is 41.42%.

Institutional Inflows and Outflows

An institutional investor recently bought a new stake in Donegal Group stock. Raymond James Financial Inc. acquired a new stake in shares of Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 5,231 shares of the insurance provider's stock, valued at approximately $93,000. 1.19% of the stock is currently owned by hedge funds and other institutional investors.

Donegal Group Company Profile

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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