Donegal Group (NASDAQ:DGICA) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Donegal Group beat quarterly estimates: The insurer reported EPS of $0.50, exceeding the $0.44 consensus by $0.06, while revenue reached $237.66 million versus expectations of $214.12 million.
• Dividend maintained: The company declared a quarterly dividend of $0.1925, equivalent to $0.77 annually and a 4.1% yield, with a 39.9% payout ratio.
• Analysts remain cautious: The stock carries an average “Hold” rating and a $20 target price; DGICA shares were trading near $18.61, while two insiders recently sold a combined 45,000 shares.

Donegal Group (NASDAQ:DGICA - Get Free Report) announced its quarterly earnings results on Thursday. The insurance provider reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.06, FiscalAI reports. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%. The company had revenue of $237.66 million during the quarter, compared to the consensus estimate of $214.12 million.

Donegal Group Trading Down 0.1%

DGICA stock traded down $0.01 during midday trading on Thursday, hitting $18.61. The stock had a trading volume of 29,719 shares, compared to its average volume of 123,442. The firm has a market cap of $690.99 million, a P/E ratio of 9.58 and a beta of -0.03. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. Donegal Group has a 1-year low of $16.11 and a 1-year high of $21.06. The business has a fifty day moving average price of $18.70 and a two-hundred day moving average price of $18.16.

Donegal Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Monday, November 2nd will be issued a $0.1925 dividend. The ex-dividend date is Monday, November 2nd. This represents a $0.77 annualized dividend and a yield of 4.1%. Donegal Group's payout ratio is presently 39.90%.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Keefe, Bruyette & Woods increased their target price on Donegal Group from $18.00 to $20.00 and gave the company a "market perform" rating in a research report on Wednesday, July 8th. Weiss Ratings raised Donegal Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. Finally, Zacks Research upgraded shares of Donegal Group from a "strong sell" rating to a "hold" rating in a report on Friday, October 16th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $20.00.

Insider Activity

In other news, CFO Jeffrey Miller sold 21,000 shares of Donegal Group stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $19.23, for a total value of $403,830.00. Following the completion of the transaction, the chief financial officer directly owned 27,176 shares of the company's stock, valued at approximately $522,594.48. This trade represents a 43.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Kevin Burke sold 24,000 shares of the business's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $19.23, for a total value of $461,520.00. Following the completion of the transaction, the insider directly owned 13,870 shares in the company, valued at $266,720.10. This represents a 63.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders acquired 220,437 shares of company stock worth $4,218,669 and sold 111,108 shares worth $2,153,119. 2.75% of the stock is currently owned by insiders.

About Donegal Group

Donegal Group Inc NASDAQ: DGICA is an insurance holding company that, through its insurance subsidiaries, provides property and casualty insurance products to individuals and businesses. The company operates under the strategic direction of Donegal Mutual Insurance Company, which owns a controlling interest in Donegal Group.

Its personal insurance offerings include automobile, homeowners, dwelling fire, farmowners and related coverage. Donegal Group also provides commercial insurance products, including businessowners, commercial automobile, commercial property and workers' compensation coverage, along with other specialized property and casualty policies.

Founded in 1986 and headquartered in Marietta, Pennsylvania, Donegal Group serves policyholders through independent agents across a broad group of states, primarily in the Mid-Atlantic, Southern and Midwestern regions of the United States.

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