Donegal Group (NASDAQ:DGICB) Stock Price Up 13.5% - Here's Why

Key Points

• Donegal Group shares jumped 13.5% on Friday, trading as high as $25.50 after closing at $23.82 the prior day. Volume was light at 1,124 shares, well below the average daily volume.
• The company recently reported weaker-than-expected quarterly results, posting EPS of $0.30 versus the $0.45 consensus and revenue of $236.0 million versus $247.83 million expected.
• Donegal Group also raised its quarterly dividend to $0.175 per share, or $0.70 annualized, which implies a yield of 2.9%.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) shares traded up 13.5% during trading on Friday . The stock traded as high as $25.50 and last traded at $27.04. 1,124 shares were traded during trading, a decline of 69% from the average daily volume of 3,679 shares. The stock had previously closed at $23.82.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Donegal Group in a report on Wednesday, June 24th. One equities research 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 company has a market capitalization of $909.21 million, a PE ratio of 14.52 and a beta of 0.04. 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 company's 50 day simple moving average is $20.09 and its 200 day simple moving average is $18.01.

Donegal Group (NASDAQ:DGICB - Get Free Report) last released 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 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 disclosed a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 1st were paid a dividend of $0.175 per share. The ex-dividend date of this dividend was Friday, May 1st. This represents a $0.70 annualized dividend and a yield of 2.9%. This is a boost from Donegal Group's previous quarterly dividend of $0.17. Donegal Group's dividend payout ratio (DPR) is currently 41.42%.

Hedge Funds Weigh In On Donegal Group

An institutional investor recently bought a new stake in Donegal Group stock. Raymond James Financial Inc. purchased a new position in shares of Donegal Group, Inc. (NASDAQ:DGICB - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 5,231 shares of the insurance provider's stock, valued at approximately $93,000. Institutional investors own 1.19% of the company's stock.

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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