Donegal Group (NASDAQ:DGICB) Shares Gap Down - What's Next?

Key Points

• Donegal shares gapped down pre-market, opening at $17.26 vs a prior close of $19.22, but were last quoted around $19.42 on very low volume (132 shares); the 50‑ and 200‑day SMAs are $17.21 and $16.65.
• Earnings miss: Q1 EPS was $0.30 versus $0.45 expected and revenue was $236.0M versus $247.8M consensus, with a net margin of 6.77% and ROE of 10.41%.
• Dividend raised: the company increased its quarterly dividend to $0.175 ($0.70 annualized) for a ~3.8% yield, with an ex‑dividend date of May 1 and a payout ratio of about 41%.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $19.22, but opened at $17.26. Donegal Group shares last traded at $19.4230, with a volume of 132 shares changing hands.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Donegal Group in a research note on Friday, March 27th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold".

Donegal Group Trading Up 2.1%

The stock has a market capitalization of $685.67 million, a P/E ratio of 10.96 and a beta of 0.06. 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 business's 50 day simple moving average is $17.21 and its 200-day simple moving average is $16.65.

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 10.41%. The business had revenue of $236.00 million during the quarter, compared to the consensus estimate of $247.83 million.

Donegal Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be given a dividend of $0.175 per share. This represents a $0.70 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Friday, May 1st. This is an increase from Donegal Group's previous quarterly dividend of $0.17. Donegal Group's dividend payout ratio is presently 41.42%.

Institutional Trading of Donegal Group

A hedge fund recently bought a new stake in Donegal Group stock. Raymond James Financial Inc. purchased a new stake in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 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.

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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