Donegal Group (NASDAQ:DGICB) Trading Down 8.1% - Here's Why

Key Points

• Donegal Group shares fell 8.1% on Wednesday, trading as low as $27.00 before last changing hands at $24.0250, far below the prior close of $26.15.
• The company’s recent quarterly results missed Wall Street expectations, with EPS of $0.30 versus an estimated $0.45 and revenue of $236 million versus forecasts of $247.83 million.
• Donegal Group raised its quarterly dividend to $0.175 per share, up from $0.17, which works out to an annualized yield of 2.9%.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report)'s share price was down 8.1% on Wednesday . The stock traded as low as $27.00 and last traded at $24.0250. 184 shares changed hands during trading, a decline of 95% from the average daily volume of 3,634 shares. The stock had previously closed at $26.15.

Analyst Ratings Changes

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

Donegal Group Trading Down 6.2%

The company has a 50 day moving average of $20.50 and a 200 day moving average of $18.21. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. The firm has a market cap of $909.02 million, a price-to-earnings ratio of 14.52 and a beta of 0.04.

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 for the quarter, compared to analyst estimates of $247.83 million. Donegal Group had a return on equity of 10.31% and a net margin of 6.77%.

Donegal Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a dividend of $0.175 per share. This is an increase from Donegal Group's previous quarterly dividend of $0.17. The ex-dividend date was Friday, May 1st. This represents a $0.70 dividend on an annualized basis and a dividend yield of 2.9%. Donegal Group's dividend payout ratio is 41.42%.

Hedge Funds Weigh In On Donegal Group

A hedge fund recently bought a new position in Donegal Group stock. Lewis Asset Management LLC bought a new stake in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 11,469 shares of the insurance provider's stock, valued at approximately $203,000. 1.19% of the stock is owned by hedge funds and other 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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