Insider Buying: Donegal Group (NASDAQ:DGICA) Major Shareholder Buys 9,000 Shares of Stock

Key Points

• Mutual Insurance Co Donegal bought 9,000 shares on March 3 at an average price of $17.63 (total $158,670) and now holds 13,937,704 shares—an ownership increase of 0.06, valued at about $245.7 million.
• The same insider made three large December purchases totaling 78,343 shares (priced roughly $19.53–$20.05 per share), signaling continued accumulation ahead of the March buy.
• Donegal Group shares traded around $17.61 with a PE of 8.04, a quarterly dividend of $0.1825 (annualized yield ~4.1% and DPR 33.3%), and the company recently missed quarterly EPS at $0.50 versus the $0.52 consensus.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal acquired 9,000 shares of Donegal Group stock in a transaction dated Tuesday, March 3rd. The stock was purchased at an average cost of $17.63 per share, with a total value of $158,670.00. Following the completion of the purchase, the insider owned 13,937,704 shares of the company's stock, valued at approximately $245,721,721.52. This represents a 0.06% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Large shareholders that own at least 10% of a company's shares are required to disclose their sales and purchases with the SEC.

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

• On Wednesday, December 10th, Mutual Insurance Co Donegal bought 22,819 shares of Donegal Group stock. The shares were purchased at an average price of $20.05 per share, for a total transaction of $457,520.95.
• On Tuesday, December 9th, Mutual Insurance Co Donegal purchased 28,000 shares of Donegal Group stock. The stock was acquired at an average price of $19.81 per share, with a total value of $554,680.00.
• On Monday, December 8th, Mutual Insurance Co Donegal purchased 27,524 shares of Donegal Group stock. The shares were acquired at an average cost of $19.53 per share, for a total transaction of $537,543.72.

Donegal Group Price Performance

Shares of NASDAQ DGICA traded down $0.18 during mid-day trading on Thursday, reaching $17.61. The company's stock had a trading volume of 35,090 shares, compared to its average volume of 118,448. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.39 and a quick ratio of 0.39. Donegal Group, Inc. has a 52 week low of $16.50 and a 52 week high of $21.12. The stock has a fifty day moving average of $18.85 and a two-hundred day moving average of $19.13. The firm has a market capitalization of $645.27 million, a PE ratio of 8.04 and a beta of 0.05.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its earnings results on Thursday, February 19th. The insurance provider reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.02). Donegal Group had a net margin of 8.11% and a return on equity of 12.99%. The business had revenue of $240.14 million for the quarter, compared to the consensus estimate of $241.10 million. As a group, sell-side analysts anticipate that Donegal Group, Inc. will post 1.2 EPS for the current fiscal year.

Donegal Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Tuesday, February 3rd were paid a dividend of $0.1825 per share. This represents a $0.73 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Tuesday, February 3rd. Donegal Group's dividend payout ratio (DPR) is presently 33.33%.

Institutional Trading of Donegal Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DGICA. State of Alaska Department of Revenue acquired a new position in shares of Donegal Group in the third quarter worth about $26,000. Smartleaf Asset Management LLC increased its stake in shares of Donegal Group by 576.6% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the insurance provider's stock valued at $55,000 after purchasing an additional 2,341 shares in the last quarter. Versant Capital Management Inc raised its holdings in Donegal Group by 79.1% in the 3rd quarter. Versant Capital Management Inc now owns 3,009 shares of the insurance provider's stock worth $58,000 after purchasing an additional 1,329 shares during the period. Allworth Financial LP boosted its position in Donegal Group by 477.2% during the second quarter. Allworth Financial LP now owns 2,961 shares of the insurance provider's stock worth $59,000 after purchasing an additional 2,448 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its holdings in Donegal Group by 422.6% in the second quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider's stock valued at $74,000 after purchasing an additional 2,975 shares during the period. Institutional investors and hedge funds own 27.96% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Zacks Research downgraded shares of Donegal Group from a "strong-buy" rating to a "hold" rating in a report on Friday, December 19th. Keefe, Bruyette & Woods decreased their target price on Donegal Group from $21.00 to $19.50 and set a "market perform" rating on the stock in a research report on Friday, February 20th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Donegal Group in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $19.50.

About Donegal Group

Donegal Group, Inc NASDAQ: DGICA is a property and casualty insurance holding company headquartered in Marietta, Pennsylvania. Through a network of independent agencies, the company offers a suite of personal and commercial insurance products. Its underwriting subsidiaries provide homeowners, automobile, farmowner, commercial multi-peril, surety and umbrella coverages designed to meet the needs of individuals, families and businesses.

The company's origins date back to 1925 with the formation of Donegal Mutual Insurance Company to serve rural communities in Pennsylvania.

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