Keefe, Bruyette & Woods Forecasts Strong Price Appreciation for Donegal Group (NASDAQ:DGICA) Stock

Donegal Group (NASDAQ:DGICA - Free Report) had its price target lifted by Keefe, Bruyette & Woods from $17.00 to $18.00 in a report issued on Friday, Marketbeat.com reports. Keefe, Bruyette & Woods currently has a market perform rating on the insurance provider's stock.

Donegal Group Stock Performance

NASDAQ:DGICA traded down $0.07 during trading on Friday, reaching $19.35. The company's stock had a trading volume of 121,392 shares, compared to its average volume of 105,936. The firm has a market cap of $689.61 million, a price-to-earnings ratio of 12.73 and a beta of -0.05. Donegal Group has a 12 month low of $12.26 and a 12 month high of $20.51. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.38 and a current ratio of 0.38. The firm has a 50 day moving average of $18.25 and a 200-day moving average of $16.39.

Donegal Group (NASDAQ:DGICA - Get Free Report) last announced its quarterly earnings data on Thursday, April 24th. The insurance provider reported $0.72 EPS for the quarter, topping the consensus estimate of $0.34 by $0.38. Donegal Group had a net margin of 5.14% and a return on equity of 9.50%. The business had revenue of $245.57 million for the quarter, compared to analyst estimates of $248.73 million. Research analysts expect that Donegal Group will post 1.2 EPS for the current fiscal year.

Donegal Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 15th. Stockholders of record on Thursday, May 1st will be given a dividend of $0.1825 per share. This represents a $0.73 dividend on an annualized basis and a dividend yield of 3.77%. The ex-dividend date of this dividend is Thursday, May 1st. This is a boost from Donegal Group's previous quarterly dividend of $0.17. Donegal Group's dividend payout ratio is currently 35.61%.

Insider Buying and Selling at Donegal Group

In other Donegal Group news, major shareholder Mutual Insurance Co Donegal bought 15,000 shares of Donegal Group stock in a transaction that occurred on Monday, March 3rd. The stock was acquired at an average cost of $17.85 per share, for a total transaction of $267,750.00. Following the completion of the transaction, the insider now directly owns 13,219,273 shares in the company, valued at $235,964,023.05. This represents a 0.11 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP William Daniel Delamater sold 12,000 shares of the company's stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $17.77, for a total value of $213,240.00. Following the completion of the transaction, the executive vice president now owns 1,495 shares of the company's stock, valued at $26,566.15. The trade was a 88.92 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have acquired 105,908 shares of company stock valued at $1,865,086 and have sold 47,119 shares valued at $845,651. Insiders own 6.63% of the company's stock.

Hedge Funds Weigh In On Donegal Group

A number of hedge funds have recently added to or reduced their stakes in DGICA. KLP Kapitalforvaltning AS bought a new position in Donegal Group in the 4th quarter worth $68,000. SG Americas Securities LLC purchased a new position in Donegal Group in the fourth quarter valued at about $128,000. BNP Paribas Financial Markets grew its position in Donegal Group by 117.2% during the 4th quarter. BNP Paribas Financial Markets now owns 8,420 shares of the insurance provider's stock worth $130,000 after purchasing an additional 4,544 shares during the last quarter. XTX Topco Ltd acquired a new stake in Donegal Group during the 4th quarter valued at approximately $162,000. Finally, Wealth Enhancement Advisory Services LLC acquired a new stake in shares of Donegal Group during the 4th quarter worth approximately $173,000. 27.96% of the stock is currently owned by hedge funds and other institutional investors.

Donegal Group Company Profile

Donegal Group Inc, an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property.