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

Key Points

• Donegal Group major shareholder Mutual Insurance Co Donegal bought 8,500 shares on May 28 at an average price of $16.98, a $144,330 transaction that slightly increased its stake. The filing brings the insider’s holdings to more than 14.08 million shares.
• The insider has been actively accumulating shares, with several similar purchases made throughout May at prices mostly in the $16.86 to $17.48 range. This suggests sustained buying interest from the company’s largest shareholder.
• Donegal Group’s stock was roughly flat and the company remains broadly a “Hold” among analysts, with an average target price of $18.00. The insurer recently raised its quarterly dividend to $0.1925 per share, implying a 4.5% yield.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock in a transaction dated Thursday, May 28th. The shares were purchased at an average price of $16.98 per share, with a total value of $144,330.00. Following the completion of the acquisition, the insider owned 14,081,609 shares in the company, valued at $239,105,720.82. The trade was a 0.06% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 Tuesday, May 26th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The shares were purchased at an average price of $17.33 per share, with a total value of $147,305.00.
• On Friday, May 22nd, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The shares were purchased at an average price of $17.40 per share, with a total value of $147,900.00.
• On Wednesday, May 20th, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The shares were purchased at an average price of $17.43 per share, with a total value of $148,155.00.
• On Tuesday, May 19th, Mutual Insurance Co Donegal purchased 8,328 shares of Donegal Group stock. The shares were purchased at an average price of $17.48 per share, with a total value of $145,573.44.
• On Monday, May 18th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was bought at an average price of $17.33 per share, with a total value of $147,305.00.
• On Friday, May 15th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was bought at an average price of $17.16 per share, with a total value of $145,860.00.
• On Wednesday, May 13th, Mutual Insurance Co Donegal bought 8,500 shares of Donegal Group stock. The stock was bought 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 bought 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 bought 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 bought at an average price of $17.06 per share, with a total value of $145,010.00.

Donegal Group Stock Up 0.1%

DGICA opened at $17.07 on Friday. The business has a 50 day moving average price of $17.25 and a 200 day moving average price of $18.45. Donegal Group, Inc. has a twelve month low of $16.11 and a twelve month high of $21.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.39 and a current ratio of 0.39. The firm has a market cap of $632.44 million, a P/E ratio of 9.54 and a beta of 0.01.

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). Donegal Group had a return on equity of 10.31% and a net margin of 6.77%.The company had revenue of $236.00 million during the quarter, compared to analyst estimates of $247.83 million. Research analysts forecast that Donegal Group, Inc. will post 1.75 EPS for the current year.

Donegal Group Increases Dividend

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

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Weiss Ratings lowered Donegal Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, May 11th. Keefe, Bruyette & Woods cut their price target on Donegal Group from $19.00 to $18.00 and set a "market perform" rating for the company in a report on Friday, May 1st. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $18.00.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DGICA. Smartleaf Asset Management LLC lifted its holdings in shares of Donegal Group by 576.6% during the fourth 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 during the last quarter. EverSource Wealth Advisors LLC increased its position 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 valued at $74,000 after purchasing an additional 2,975 shares during the period. IFP Advisors Inc increased its position in shares of Donegal Group by 1,377.6% during the fourth quarter. IFP Advisors Inc now owns 3,768 shares of the insurance provider's stock valued at $75,000 after purchasing an additional 3,513 shares during the period. CANADA LIFE ASSURANCE Co increased its position in shares of Donegal Group by 31.6% during the fourth quarter. CANADA LIFE ASSURANCE Co now owns 3,733 shares of the insurance provider's stock valued at $75,000 after purchasing an additional 896 shares during the period. Finally, Tower Research Capital LLC TRC increased its position 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 valued at $99,000 after purchasing an additional 4,022 shares during the period. 27.96% of the stock is currently owned by institutional investors and hedge funds.

Donegal Group Company Profile

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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