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

Key Points

• Donegal Group shares gapped up ahead of Tuesday’s open, jumping from a prior close of $22.15 to an opening price of $24.49 before settling around $22.99. Trading volume was light at 2,550 shares.
• The stock remains viewed cautiously by analysts, with Weiss Ratings reiterating a hold (c) and MarketBeat showing a consensus rating of Hold.
• Donegal Group recently paid a quarterly dividend of $0.175 per share, which annualizes to $0.70 and implies a 3.0% yield. The company also missed Q1 earnings expectations, reporting $0.30 EPS versus $0.45 expected.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $22.15, but opened at $24.49. Donegal Group shares last traded at $22.99, with a volume of 2,550 shares traded.

Wall Street Analysts Forecast Growth

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, According to MarketBeat, the company currently has a consensus rating of "Hold".

Donegal Group Stock Performance

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 firm has a market cap of $851.78 million, a price-to-earnings ratio of 13.60 and a beta of 0.04. The firm has a fifty day simple moving average of $20.88 and a two-hundred day simple moving average of $18.42.

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 (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.15). The company had revenue of $236.00 million for 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 Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be issued a $0.175 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $0.70 dividend on an annualized basis and a dividend yield of 3.0%. Donegal Group's dividend payout ratio (DPR) is currently 41.42%.

Hedge Funds Weigh In On Donegal Group

A hedge fund recently bought a new stake in Donegal Group stock. Raymond James Financial Inc. acquired a new stake in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the second quarter, according to its most recent Form 13F 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 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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