Insider Buying: Donegal Group (NASDAQ:DGICA) Major Shareholder Buys 20,000 Shares of Stock

Key Points

• Mutual Insurance Co Donegal, a major shareholder, purchased 20,000 shares of Donegal Group at an average price of $19.53, totaling around $390,600, which increased their ownership stake by 0.15%.
• Donegal Group's stock is currently down by 1.4%, trading at $19.21, with a market cap of approximately $701.25 million and a P/E ratio of 8.07.
• The company recently declared a quarterly dividend of $0.1825 per share, resulting in an annualized dividend yield of 3.8%.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal acquired 20,000 shares of the stock in a transaction dated Friday, September 12th. The stock was acquired at an average cost of $19.53 per share, with a total value of $390,600.00. Following the completion of the transaction, the insider owned 13,654,579 shares in the company, valued at approximately $266,673,927.87. This represents a 0.15% increase in their position. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Major shareholders that own more than 10% of a company's stock are required to disclose their transactions with the SEC.

Mutual Insurance Co Donegal also recently made the following trade(s):

• On Thursday, September 11th, Mutual Insurance Co Donegal bought 16,573 shares of Donegal Group stock. The stock was acquired at an average price of $19.45 per share, with a total value of $322,344.85.
• On Wednesday, September 10th, Mutual Insurance Co Donegal acquired 20,000 shares of Donegal Group stock. The stock was bought at an average price of $18.99 per share, with a total value of $379,800.00.
• On Tuesday, September 9th, Mutual Insurance Co Donegal acquired 19,352 shares of Donegal Group stock. The stock was bought at an average price of $19.24 per share, with a total value of $372,332.48.
• On Monday, September 8th, Mutual Insurance Co Donegal purchased 19,025 shares of Donegal Group stock. The stock was bought at an average cost of $19.10 per share, with a total value of $363,377.50.
• On Thursday, September 4th, Mutual Insurance Co Donegal purchased 19,212 shares of Donegal Group stock. The stock was bought at an average cost of $19.22 per share, with a total value of $369,254.64.
• On Wednesday, September 3rd, Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock. The stock was bought at an average cost of $18.37 per share, with a total value of $367,400.00.
• On Tuesday, September 2nd, Mutual Insurance Co Donegal purchased 19,440 shares of Donegal Group stock. The stock was bought at an average cost of $18.27 per share, with a total value of $355,168.80.
• On Friday, August 29th, Mutual Insurance Co Donegal bought 20,000 shares of Donegal Group stock. The stock was purchased at an average cost of $17.84 per share, with a total value of $356,800.00.
• On Thursday, August 28th, Mutual Insurance Co Donegal bought 8,032 shares of Donegal Group stock. The stock was purchased at an average cost of $17.61 per share, with a total value of $141,443.52.
• On Tuesday, August 26th, Mutual Insurance Co Donegal bought 15,815 shares of Donegal Group stock. The stock was purchased at an average cost of $17.45 per share, with a total value of $275,971.75.

Donegal Group Stock Down 0.9%

DGICA stock traded down $0.18 during midday trading on Friday, reaching $19.33. 476,962 shares of the company's stock traded hands, compared to its average volume of 133,915. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 0.06. The firm's fifty day moving average price is $18.02 and its 200-day moving average price is $18.73. The company has a market cap of $705.72 million and a price-to-earnings ratio of 8.12. Donegal Group, Inc. has a 52 week low of $14.06 and a 52 week high of $21.12.

Donegal Group (NASDAQ:DGICA - Get Free Report) last posted its earnings results on Thursday, July 24th. The insurance provider reported $0.43 EPS for the quarter, topping the consensus estimate of $0.36 by $0.07. The company had revenue of $233.81 million during the quarter, compared to the consensus estimate of $247.21 million. Donegal Group had a net margin of 8.33% and a return on equity of 14.33%. As a group, sell-side analysts forecast that Donegal Group, Inc. will post 1.2 earnings per share for the current fiscal year.

Donegal Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 1st were paid a $0.1825 dividend. The ex-dividend date was Friday, August 1st. This represents a $0.73 annualized dividend and a dividend yield of 3.8%. Donegal Group's dividend payout ratio is presently 30.67%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Jump Financial LLC boosted its position in Donegal Group by 3.1% during the first quarter. Jump Financial LLC now owns 17,952 shares of the insurance provider's stock worth $352,000 after purchasing an additional 533 shares during the period. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Donegal Group by 5.1% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 14,578 shares of the insurance provider's stock worth $282,000 after acquiring an additional 703 shares during the period. Bank of America Corp DE boosted its holdings in shares of Donegal Group by 3.0% in the fourth quarter. Bank of America Corp DE now owns 29,572 shares of the insurance provider's stock worth $457,000 after acquiring an additional 871 shares during the period. CWM LLC boosted its holdings in shares of Donegal Group by 21.9% in the second quarter. CWM LLC now owns 6,293 shares of the insurance provider's stock worth $126,000 after acquiring an additional 1,130 shares during the period. Finally, Martingale Asset Management L P boosted its holdings in shares of Donegal Group by 4.2% in the first quarter. Martingale Asset Management L P now owns 28,509 shares of the insurance provider's stock worth $560,000 after acquiring an additional 1,156 shares during the period. 27.96% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

DGICA has been the subject of several recent analyst reports. Zacks Research upgraded shares of Donegal Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, September 3rd. Janney Montgomery Scott upgraded shares of Donegal Group from a "neutral" rating to a "buy" rating in a report on Tuesday, September 2nd. Finally, Wall Street Zen downgraded Donegal Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $18.00.

Donegal Group Company Profile

Donegal Group Inc, an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three 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; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property.