Donegal Group (NASDAQ:DGICB) Shares Up 18.2% - Time to Buy?

Key Points

• Donegal Group shares jumped 18.2% to $25.54 in thin trading, with only about 351 shares changing hands versus average daily volume of 4,987 shares.
• Analysts maintain a consensus “Hold” rating, while the company’s latest quarterly results missed expectations: EPS was $0.30 versus $0.45 expected, and revenue was $236 million versus $247.83 million projected.
• Donegal Group declared a quarterly dividend of $0.175, equivalent to $0.70 annually and a 3.3% yield; Raymond James also recently acquired a new 5,231-share position.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report)'s share price traded up 18.2% during trading on Wednesday . The company traded as high as $20.92 and last traded at $25.54. Approximately 351 shares changed hands during trading, a decline of 93% from the average daily volume of 4,987 shares. The stock had previously closed at $21.60.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "hold (c)" rating on shares of Donegal Group in a report on Wednesday, June 24th. One analyst has rated the stock with a Hold rating, According to MarketBeat.com, Donegal Group has a consensus rating of "Hold".

Donegal Group Stock Performance

The company has a market cap of $797.83 million, a P/E ratio of 12.49 and a beta of 0.04. The stock has a 50 day moving average price of $21.21 and a two-hundred day moving average price of $18.61. 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 announced its earnings results on Thursday, April 30th. The insurance provider reported $0.30 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.15). The business had revenue of $236.00 million for the quarter, compared to the consensus estimate of $247.83 million. Donegal Group had a return on equity of 10.31% and a net margin of 6.77%.

Donegal Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be paid a $0.175 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $0.70 annualized dividend and a dividend yield of 3.3%. Donegal Group's dividend payout ratio 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. purchased a new position in 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 purchased 5,231 shares of the insurance provider's stock, valued at approximately $93,000. 1.19% of the stock is 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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