Insider Buying: Donegal Group (NASDAQ:DGICA) Major Shareholder Purchases 19,352 Shares of Stock

Key Points

• Mutual Insurance Co Donegal, a major shareholder of Donegal Group, purchased 19,352 shares at an average price of $19.24 per share, totaling approximately $372,332 in the transaction.
• Donegal Group has recently announced a quarterly dividend of $0.1825 per share, which reflects an annualized yield of 3.8% and a payout ratio of 30.67%.
• The company's stock has seen a recent 1.4% decline in trading, with shares currently priced at $19.01, while it has a market capitalization of $694.04 million.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal purchased 19,352 shares of the firm's stock in a transaction on Tuesday, September 9th. The shares were purchased at an average cost of $19.24 per share, with a total value of $372,332.48. Following the completion of the transaction, the insider owned 13,598,006 shares of the company's stock, valued at approximately $261,625,635.44. The trade was a 0.14% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Major 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 Friday, September 12th, Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock. The shares were purchased at an average cost of $19.53 per share, with a total value of $390,600.00.
• On Thursday, September 11th, Mutual Insurance Co Donegal purchased 16,573 shares of Donegal Group stock. The shares were purchased at an average cost of $19.45 per share, with a total value of $322,344.85.
• On Wednesday, September 10th, Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock. The shares were purchased at an average cost of $18.99 per share, with a total value of $379,800.00.
• On Monday, September 8th, Mutual Insurance Co Donegal purchased 19,025 shares of Donegal Group stock. The shares were purchased 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 bought 19,212 shares of Donegal Group stock. The stock was bought at an average price of $19.22 per share, with a total value of $369,254.64.
• On Wednesday, September 3rd, Mutual Insurance Co Donegal bought 20,000 shares of Donegal Group stock. The stock was bought at an average price of $18.37 per share, with a total value of $367,400.00.
• On Tuesday, September 2nd, Mutual Insurance Co Donegal bought 19,440 shares of Donegal Group stock. The stock was bought at an average price 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 bought at an average price 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 bought at an average price 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 bought at an average price of $17.45 per share, with a total value of $275,971.75.

Donegal Group Stock Performance

DGICA stock traded down $0.15 during trading on Monday, reaching $19.33. The company had a trading volume of 145,018 shares, compared to its average volume of 132,044. The firm has a 50-day simple moving average of $17.98 and a 200-day simple moving average of $18.70. The company has a market cap of $705.70 million and a price-to-earnings ratio of 8.12. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.40 and a current ratio of 0.40. Donegal Group, Inc. has a twelve month low of $14.06 and a twelve month high of $21.12.

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

Donegal Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were given a dividend of $0.1825 per share. The ex-dividend date of this dividend was Friday, August 1st. This represents a $0.73 dividend on an annualized basis and a yield of 3.8%. Donegal Group's dividend payout ratio (DPR) is currently 30.67%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DGICA. Allworth Financial LP lifted its position in Donegal Group by 477.2% in the second quarter. Allworth Financial LP now owns 2,961 shares of the insurance provider's stock valued at $59,000 after buying an additional 2,448 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Donegal Group by 422.6% during the second quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider's stock worth $74,000 after buying an additional 2,975 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of Donegal Group by 443.9% during the second quarter. Tower Research Capital LLC TRC now owns 4,928 shares of the insurance provider's stock worth $99,000 after buying an additional 4,022 shares during the period. CWM LLC increased its stake in shares of Donegal Group by 78.0% during the first quarter. CWM LLC now owns 5,163 shares of the insurance provider's stock worth $101,000 after buying an additional 2,263 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in shares of Donegal Group during the second quarter worth approximately $101,000. Institutional investors and hedge funds own 27.96% of the company's stock.

Analysts Set New Price Targets

A number of research firms have issued reports on DGICA. Wall Street Zen lowered shares of Donegal Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Zacks Research raised shares of Donegal Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, September 3rd. Finally, Janney Montgomery Scott raised shares of Donegal Group from a "neutral" rating to a "buy" rating in a research report on Tuesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Buy" and an average target price of $18.00.

About Donegal Group

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.