Insider Buying: Donegal Group (NASDAQ:DGICA) Major Shareholder Purchases 8,500 Shares of Stock

Key Points

• Major shareholder Mutual Insurance Co. Donegal bought 8,500 shares of Donegal Group at $17.33 each on May 26, totaling about $147,305. The insider now holds more than 14.06 million shares.
• The company has seen a series of insider purchases from the same shareholder throughout May, suggesting steady accumulation of DGICA shares over multiple trading days.
• Donegal Group recently raised its quarterly dividend to $0.1925 per share, implying a 4.5% annualized yield, even as its latest earnings and revenue came in below analyst expectations.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal acquired 8,500 shares of the stock in a transaction on Tuesday, May 26th. The stock was bought at an average cost of $17.33 per share, for a total transaction of $147,305.00. Following the transaction, the insider owned 14,064,609 shares of the company's stock, valued at approximately $243,739,673.97. This trade represents a 0.06% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Major shareholders that own 10% or more 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 Friday, May 22nd, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was bought at an average cost of $17.40 per share, for a total transaction of $147,900.00.
• On Wednesday, May 20th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was bought at an average cost of $17.43 per share, for a total transaction of $148,155.00.
• On Tuesday, May 19th, Mutual Insurance Co Donegal acquired 8,328 shares of Donegal Group stock. The stock was bought at an average cost of $17.48 per share, for a total transaction of $145,573.44.
• On Monday, May 18th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was bought at an average cost of $17.33 per share, for a total transaction of $147,305.00.
• On Friday, May 15th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The stock was bought at an average cost of $17.16 per share, for a total transaction of $145,860.00.
• On Wednesday, May 13th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was acquired at an average price of $16.86 per share, with a total value of $143,310.00.
• On Monday, May 11th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was acquired at an average price of $17.18 per share, with a total value of $146,030.00.
• On Friday, May 8th, Mutual Insurance Co Donegal bought 8,077 shares of Donegal Group stock. The stock was acquired at an average price of $17.13 per share, with a total value of $138,359.01.
• On Thursday, May 7th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was acquired at an average price of $17.06 per share, with a total value of $145,010.00.
• On Tuesday, May 5th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was acquired at an average price of $16.50 per share, with a total value of $140,250.00.

Donegal Group Price Performance

DGICA opened at $17.06 on Thursday. The company has a market capitalization of $632.07 million, a price-to-earnings ratio of 9.53 and a beta of 0.01. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05. The firm has a 50-day moving average price of $17.25 and a 200-day moving average price of $18.47. Donegal Group, Inc. has a twelve month low of $16.11 and a twelve month high of $21.06.

Donegal Group (NASDAQ:DGICA - Get Free Report) last posted its earnings results on Thursday, April 30th. The insurance provider reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.08). The business had revenue of $236.00 million during the quarter, compared to analysts' expectations of $247.83 million. Donegal Group had a return on equity of 10.31% and a net margin of 6.77%. Equities analysts expect that Donegal Group, Inc. will post 1.7 EPS for the current year.

Donegal Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 1st were paid a $0.1925 dividend. The ex-dividend date was Friday, May 1st. This is a positive change from Donegal Group's previous quarterly dividend of $0.18. This represents a $0.77 annualized dividend and a dividend yield of 4.5%. Donegal Group's dividend payout ratio is 43.02%.

Wall Street Analyst Weigh In

DGICA has been the subject of several recent research reports. Keefe, Bruyette & Woods reduced their target price on shares of Donegal Group from $19.00 to $18.00 and set a "market perform" rating for the company in a research note on Friday, May 1st. Weiss Ratings cut shares of Donegal Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $18.00.

Hedge Funds Weigh In On Donegal Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Smartleaf Asset Management LLC grew its stake in Donegal Group by 576.6% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the insurance provider's stock worth $55,000 after buying an additional 2,341 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Donegal Group by 422.6% in the 2nd 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 in the last quarter. IFP Advisors Inc lifted its holdings in shares of Donegal Group by 1,377.6% in the 4th quarter. IFP Advisors Inc now owns 3,768 shares of the insurance provider's stock worth $75,000 after acquiring an additional 3,513 shares during the last quarter. CANADA LIFE ASSURANCE Co lifted its holdings in shares of Donegal Group by 31.6% in the 4th quarter. CANADA LIFE ASSURANCE Co now owns 3,733 shares of the insurance provider's stock worth $75,000 after acquiring an additional 896 shares during the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Donegal Group by 443.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,928 shares of the insurance provider's stock worth $99,000 after acquiring an additional 4,022 shares during the last quarter. Hedge funds and other institutional investors own 27.96% of the company's stock.

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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