Keefe, Bruyette & Woods Has Lowered Expectations for Donegal Group (NASDAQ:DGICA) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target on Donegal Group (DGICA) from $19.00 to $18.00 and kept a "market perform" rating, implying about an 8.4% upside; the consensus target is $18.00 and analysts' ratings average to a "Moderate Buy."
• Donegal missed quarterly estimates (EPS $0.32 vs. $0.40 expected; revenue $236M vs. $247.8M), its stock dipped to $16.61 (down 1.2%) and sits below key moving averages, while an EVP sold 9,000 shares the same day a major shareholder purchased 9,000 shares.

Donegal Group (NASDAQ:DGICA - Get Free Report) had its price target decreased by Keefe, Bruyette & Woods from $19.00 to $18.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "market perform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price target would indicate a potential upside of 8.36% from the company's current price.

Separately, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Donegal Group in a report on Wednesday, January 21st. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Donegal Group has an average rating of "Moderate Buy" and a consensus target price of $18.00.

Donegal Group Stock Down 1.2%

Shares of DGICA traded down $0.21 during midday trading on Friday, reaching $16.61. 36,779 shares of the stock were exchanged, compared to its average volume of 117,736. 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 company has a market cap of $614.61 million, a price-to-earnings ratio of 7.59 and a beta of 0.05. The firm has a 50 day simple moving average of $17.31 and a 200-day simple moving average of $18.70. Donegal Group has a 12-month low of $16.29 and a 12-month high of $21.12.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The insurance provider reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.40 by ($0.08). The company had revenue of $236.00 million for the quarter, compared to analyst estimates of $247.83 million. Donegal Group had a net margin of 8.11% and a return on equity of 12.81%. Research analysts forecast that Donegal Group will post 1.6 EPS for the current year.

Insiders Place Their Bets

In other news, EVP William Daniel Delamater sold 9,000 shares of the business's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $17.63, for a total transaction of $158,670.00. Following the completion of the sale, the executive vice president owned 2,012 shares in the company, valued at $35,471.56. The trade was a 81.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Mutual Insurance Co Donegal bought 9,000 shares of the company's stock in a transaction dated Tuesday, March 3rd. The shares were purchased at an average price of $17.63 per share, with a total value of $158,670.00. Following the transaction, the insider owned 13,937,704 shares of the company's stock, valued at $245,721,721.52. The trade was a 0.06% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 2.75% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DGICA. State of Alaska Department of Revenue acquired a new position in shares of Donegal Group during the third quarter worth about $26,000. Smartleaf Asset Management LLC boosted its position 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 period. Versant Capital Management Inc boosted its position in shares of Donegal Group by 79.1% during the third quarter. Versant Capital Management Inc now owns 3,009 shares of the insurance provider's stock worth $58,000 after buying an additional 1,329 shares during the period. EverSource Wealth Advisors LLC boosted 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 worth $74,000 after buying an additional 2,975 shares during the period. Finally, IFP Advisors Inc grew 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 valued at $75,000 after acquiring an additional 3,513 shares in the last quarter. 27.96% of the stock is 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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