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

Key Points

• Mutual Insurance Co Donegal, a major shareholder of Donegal Group, purchased a total of 20,000 shares at an average cost of $18.99 each, totaling approximately $379,800.
• Donegal Group's stock recently traded down 0.7%, reaching $19.59, with a market capitalization of $715.05 million and a P/E ratio of 8.23.
• Analysts have varied assessments of Donegal Group, with one upgrading it from "neutral" to "buy" and another downgrading it from "buy" to "hold", resulting in an average rating of "buy" for the stock.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal bought 20,000 shares of the stock in a transaction dated Wednesday, September 10th. The shares were bought at an average cost of $18.99 per share, with a total value of $379,800.00. Following the completion of the purchase, the insider directly owned 13,618,006 shares of the company's stock, valued at approximately $258,605,933.94. This trade represents a 0.15% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 purchased 16,573 shares of Donegal Group stock. The shares were purchased at an average cost of $19.45 per share, for a total transaction of $322,344.85.
• On Tuesday, September 9th, Mutual Insurance Co Donegal acquired 19,352 shares of Donegal Group stock. The stock was purchased 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 acquired 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 acquired 19,212 shares of Donegal Group stock. The shares were acquired at an average cost of $19.22 per share, for a total transaction of $369,254.64.
• On Wednesday, September 3rd, Mutual Insurance Co Donegal bought 20,000 shares of Donegal Group stock. The shares were bought at an average cost of $18.37 per share, for a total transaction 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 price of $18.27 per share, for a total transaction of $355,168.80.
• On Friday, August 29th, Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock. The stock was bought 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 acquired 8,032 shares of Donegal Group stock. The shares were bought at an average cost of $17.61 per share, for a total transaction 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, for a total transaction of $275,971.75.
• On Wednesday, August 27th, Mutual Insurance Co Donegal bought 15,509 shares of Donegal Group stock. The stock was purchased at an average price of $17.49 per share, with a total value of $271,252.41.

Donegal Group Stock Down 0.7%

Shares of NASDAQ:DGICA traded down $0.14 during trading on Friday, reaching $19.59. The stock had a trading volume of 20,330 shares, compared to its average volume of 131,378. The firm's 50-day simple moving average is $17.98 and its 200 day simple moving average is $18.66. The company has a current ratio of 0.40, a quick ratio of 0.40 and a debt-to-equity ratio of 0.06. Donegal Group, Inc. has a one year low of $14.06 and a one year high of $21.12. The company has a market capitalization of $715.05 million and a P/E ratio of 8.23.

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

Donegal Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Friday, August 1st were issued a dividend of $0.1825 per share. The ex-dividend date was Friday, August 1st. This represents a $0.73 annualized dividend and a dividend yield of 3.7%. Donegal Group's dividend payout ratio is 30.67%.

Analyst Upgrades and Downgrades

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

Institutional Trading of Donegal Group

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Donegal Group by 2.1% during the 1st quarter. Vanguard Group Inc. now owns 946,432 shares of the insurance provider's stock worth $18,578,000 after acquiring an additional 19,174 shares in the last quarter. Geode Capital Management LLC boosted its position in Donegal Group by 6.6% during the second quarter. Geode Capital Management LLC now owns 409,082 shares of the insurance provider's stock worth $8,193,000 after purchasing an additional 25,259 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its position in Donegal Group by 33.0% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 356,154 shares of the insurance provider's stock worth $7,132,000 after purchasing an additional 88,462 shares in the last quarter. ProShare Advisors LLC acquired a new stake in Donegal Group in the second quarter valued at approximately $6,343,000. Finally, Kennedy Capital Management LLC increased its position in shares of Donegal Group by 7.8% in the second quarter. Kennedy Capital Management LLC now owns 205,631 shares of the insurance provider's stock valued at $4,118,000 after buying an additional 14,846 shares in the last quarter. Hedge funds and other institutional investors own 27.96% of the company's stock.

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.

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