Donegal Group (NASDAQ:DGICB) Shares Gap Up - Still a Buy?

Key Points

• Donegal Group shares gapped up before trading, opening at $24.83 after closing at $22.90 and last trading near $24.96, though volume was very light.
• The stock currently carries a Hold rating from analysts, with Weiss Ratings reiterating a “hold (c)” and MarketBeat showing an average Hold rating overall.
• Donegal Group recently raised its quarterly dividend to $0.175 per share, implying a 2.6% annualized yield, even as its latest earnings missed Wall Street estimates.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $22.90, but opened at $24.83. Donegal Group shares last traded at $24.9590, with a volume of 189 shares traded.

Wall Street Analyst Weigh In

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

Donegal Group Price Performance

The stock has a market cap of $1.01 billion, a P/E ratio of 16.19 and a beta of 0.04. The company's 50 day moving average price is $20.31 and its 200-day moving average price is $18.13. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05.

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

Donegal Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a $0.175 dividend. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Donegal Group's previous quarterly dividend of $0.17. This represents a $0.70 annualized dividend and a dividend yield of 2.6%. Donegal Group's payout ratio is currently 41.42%.

Hedge Funds Weigh In On Donegal Group

An institutional investor recently bought a new position in Donegal Group stock. Raymond James Financial Inc. bought a new stake in shares of Donegal Group, Inc. (NASDAQ:DGICB - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. 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.

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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