Donegal Group (NASDAQ:DGICB) Shares Down 8.7% on Disappointing Earnings

Key Points

• Shares fell 8.7% after Donegal Group reported quarterly EPS of $0.30, missing consensus of $0.45 and sending the stock down to about $18.03 on thin intraday volume.
• The company raised its quarterly dividend to $0.175 (annualized $0.70), yielding about 3.9% with an ex-dividend date of May 1 and a payout ratio near 34%.
• Analysts maintain a consensus Hold rating (Weiss Ratings reissued a "hold (c)"), while Raymond James initiated a small institutional stake of 5,231 shares; the stock trades at a P/E of about 8.8 and market cap near $670M.

Shares of Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) fell 8.7% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $18.00 and last traded at $18.0310. 377 shares were traded during mid-day trading, a decline of 91% from the average session volume of 4,316 shares. The stock had previously closed at $19.75.

The insurance provider reported $0.30 earnings per share for the quarter, missing analysts' consensus estimates of $0.45 by ($0.15). Donegal Group had a return on equity of 12.81% and a net margin of 8.11%.

Donegal Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be paid a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.9%. This is a positive change from Donegal Group's previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Friday, May 1st. Donegal Group's dividend payout ratio is currently 34.15%.

Analyst Upgrades and Downgrades

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 data from MarketBeat.com, the stock currently has an average rating of "Hold".

Hedge Funds Weigh In On Donegal Group

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

Donegal Group Stock Down 8.3%

The business has a 50-day moving average price of $17.10 and a 200 day moving average price of $16.59. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $669.90 million, a P/E ratio of 8.83 and a beta of 0.04.

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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