Donegal Group (NASDAQ:DGICA) Major Shareholder Purchases 10,000 Shares

Key Points

• Mutual Insurance Co Donegal bought 10,000 DGICA shares at an average price of $18.68, investing $186,800. Following the purchase, it owned 14.2 million shares valued at approximately $265.3 million.
• The shareholder has made multiple additional purchases in recent months, including 10,000 shares on August 24 at $19.06 each, signaling continued accumulation of Donegal Group stock.
• Donegal Group recently exceeded quarterly earnings expectations, reporting $0.53 EPS and $241.1 million in revenue. The company also offers a 4.1% dividend yield, while analysts maintain a “Moderate Buy” consensus rating with a $20 price target.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal acquired 10,000 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was purchased at an average cost of $18.68 per share, for a total transaction of $186,800.00. Following the acquisition, the insider owned 14,204,206 shares in the company, valued at approximately $265,334,568.08. This trade represents a 0.07% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Large shareholders that own at least 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 Monday, August 24th, Mutual Insurance Co Donegal bought 10,000 shares of Donegal Group stock. The shares were purchased at an average cost of $19.06 per share, with a total value of $190,600.00.
• On Thursday, August 20th, Mutual Insurance Co Donegal purchased 9,815 shares of Donegal Group stock. The stock was purchased at an average price 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 shares were acquired 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 acquired 10,000 shares of Donegal Group stock. The shares were acquired at an average price of $18.52 per share, with a total value of $185,200.00.
• On Thursday, August 6th, Mutual Insurance Co Donegal bought 18,000 shares of Donegal Group stock. The stock was acquired 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 bought 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 purchased 9,900 shares of Donegal Group stock. The stock was acquired at an average cost of $17.56 per share, with a total value of $173,844.00.
• On Wednesday, June 3rd, Mutual Insurance Co Donegal purchased 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.
• On Monday, June 1st, Mutual Insurance Co Donegal purchased 8,500 shares of Donegal Group stock. The shares were acquired at an average cost of $16.76 per share, for a total transaction of $142,460.00.
• On Thursday, May 28th, Mutual Insurance Co Donegal acquired 8,500 shares of Donegal Group stock. The shares were bought at an average price of $16.98 per share, for a total transaction of $144,330.00.

Donegal Group Price Performance

DGICA stock traded up $0.03 during trading on Tuesday, hitting $19.01. The company had a trading volume of 23,178 shares, compared to its average volume of 127,371. The business has a 50 day moving average of $18.74 and a 200 day moving average of $17.89. The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of 9.85 and a beta of -0.01. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. 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 released its earnings results on Thursday, July 30th. The insurance provider reported $0.53 EPS for the quarter, beating the consensus estimate of $0.42 by $0.11. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%. The firm had revenue of $241.12 million for the quarter, compared to analysts' expectations of $231.53 million. As a group, research analysts predict that Donegal Group, Inc. will post 1.75 earnings per share for the current year.

Donegal Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were given a dividend of $0.1925 per share. The ex-dividend date was Friday, July 31st. This represents a $0.77 annualized dividend and a dividend yield of 4.1%. Donegal Group's dividend payout ratio (DPR) is 39.90%.

Analyst Upgrades and Downgrades

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

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of DGICA. Royce & Associates LP grew its position in Donegal Group by 579.4% during the 4th quarter. Royce & Associates LP now owns 169,853 shares of the insurance provider's stock worth $3,394,000 after acquiring an additional 144,853 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in Donegal Group by 41.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 276,237 shares of the insurance provider's stock valued at $4,746,000 after purchasing an additional 80,614 shares during the last quarter. Los Angeles Capital Management LLC raised its position in Donegal Group by 145.0% in the 4th quarter. Los Angeles Capital Management LLC now owns 67,726 shares of the insurance provider's stock valued at $1,245,000 after purchasing an additional 40,078 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its stake in Donegal Group by 44.9% in the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 36,749 shares of the insurance provider's stock worth $631,000 after purchasing an additional 11,386 shares in the last quarter. Finally, QRG Capital Management Inc. bought a new stake in shares of Donegal Group during the first quarter worth $223,000. 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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