Donegal Group (NASDAQ:DGICA) Major Shareholder Buys $189,500.00 in Stock

Key Points

• Mutual Insurance Co Donegal purchased 10,000 Donegal Group shares at an average price of $18.95, bringing its holdings to 14.24 million shares valued at approximately $269.9 million. The transaction continues a series of insider purchases in recent months.
• Donegal Group reported quarterly earnings of $0.53 per share, exceeding the $0.42 analyst consensus, while revenue of $241.12 million also surpassed expectations.
• DGICA traded near $19.15, with analysts assigning a consensus “Moderate Buy” rating and an average price target of $20.00. The company also maintains a quarterly dividend of $0.1925, equivalent to a 4.0% annualized yield.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal purchased 10,000 shares of Donegal Group stock in a transaction on Thursday, August 27th. The shares were acquired at an average cost of $18.95 per share, for a total transaction of $189,500.00. Following the purchase, the insider owned 14,243,714 shares in the company, valued at approximately $269,918,380.30. This trade represents a 0.07% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Major shareholders that own at least 10% of a company's stock are required to disclose their sales and purchases with the SEC.

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

• On Wednesday, August 26th, Mutual Insurance Co Donegal bought 9,508 shares of Donegal Group stock. The shares were acquired at an average price of $19.11 per share, for a total transaction of $181,697.88.
• On Monday, August 24th, Mutual Insurance Co Donegal bought 10,000 shares of Donegal Group stock. The shares were acquired at an average price of $19.06 per share, for a total transaction of $190,600.00.
• On Friday, August 21st, Mutual Insurance Co Donegal acquired 10,000 shares of Donegal Group stock. The shares were acquired at an average price of $18.68 per share, for a total transaction of $186,800.00.
• On Thursday, August 20th, Mutual Insurance Co Donegal bought 9,815 shares of Donegal Group stock. The shares were purchased at an average cost of $18.66 per share, for a total transaction of $183,147.90.
• On Wednesday, August 19th, Mutual Insurance Co Donegal purchased 9,700 shares of Donegal Group stock. The stock was bought at an average cost of $18.61 per share, for a total transaction of $180,517.00.
• On Monday, August 17th, Mutual Insurance Co Donegal bought 10,000 shares of Donegal Group stock. The shares were purchased at an average cost of $18.52 per share, with a total value of $185,200.00.
• On Thursday, August 6th, Mutual Insurance Co Donegal purchased 18,000 shares of Donegal Group stock. The stock was purchased at an average price of $19.67 per share, for a total transaction of $354,060.00.
• On Friday, June 12th, Mutual Insurance Co Donegal purchased 9,682 shares of Donegal Group stock. The shares were acquired at an average cost of $17.62 per share, for a total transaction of $170,596.84.
• On Thursday, June 11th, Mutual Insurance Co Donegal acquired 9,900 shares of Donegal Group stock. The shares were acquired at an average price of $17.56 per share, with a total value of $173,844.00.
• On Wednesday, June 3rd, Mutual Insurance Co Donegal acquired 10,000 shares of Donegal Group stock. The stock was acquired at an average cost of $16.62 per share, with a total value of $166,200.00.

Donegal Group Stock Performance

DGICA traded down $0.09 during trading hours on Monday, hitting $19.15. The company's stock had a trading volume of 17,504 shares, compared to its average volume of 126,711. The company has a 50-day simple moving average of $18.87 and a 200 day simple moving average of $17.90. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $710.85 million, a PE ratio of 9.92 and a beta of -0.01. Donegal Group, Inc. has a fifty-two week low of $16.11 and a fifty-two week high of $21.06.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The insurance provider reported $0.53 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.11. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%. The business had revenue of $241.12 million for the quarter, compared to analysts' expectations of $231.53 million. As a group, sell-side analysts expect that Donegal Group, Inc. will post 1.75 EPS for the current year.

Donegal Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a $0.1925 dividend. This represents a $0.77 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend was Friday, July 31st. Donegal Group's payout ratio is currently 39.90%.

Institutional Investors Weigh In On Donegal Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP boosted its stake in Donegal Group by 0.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,737,266 shares of the insurance provider's stock valued at $29,846,000 after acquiring an additional 7,345 shares during the last quarter. Vanguard Group Inc. raised its stake in Donegal Group by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 1,008,217 shares of the insurance provider's stock worth $19,549,000 after buying an additional 39,181 shares during the period. Geode Capital Management LLC raised its stake in Donegal Group by 2.3% during the 4th quarter. Geode Capital Management LLC now owns 534,703 shares of the insurance provider's stock worth $10,685,000 after buying an additional 11,891 shares during the period. Renaissance Technologies LLC lifted its holdings in Donegal Group by 5.8% during the first quarter. Renaissance Technologies LLC now owns 392,711 shares of the insurance provider's stock worth $6,747,000 after acquiring an additional 21,500 shares in the last quarter. Finally, State Street Corp lifted its holdings in Donegal Group by 0.8% during the fourth quarter. State Street Corp now owns 391,729 shares of the insurance provider's stock worth $7,827,000 after acquiring an additional 3,290 shares in the last quarter. 27.96% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have weighed in on DGICA. Weiss Ratings raised Donegal Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, July 28th. Keefe, Bruyette & Woods upped their price target on shares of Donegal Group from $18.00 to $20.00 and gave the company a "market perform" rating in a report on Wednesday, July 8th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $20.00.

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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