Keefe, Bruyette & Woods Issues Pessimistic Forecast for Donegal Group (NASDAQ:DGICA) Stock Price

Key Points

• Keefe, Bruyette & Woods lowered its price target for Donegal Group from $19.50 to $19.00 and maintained a "market perform" rating, implying about a 10.4% upside from the prior close.
• Donegal missed the quarter with EPS of $0.50 versus a $0.52 estimate and revenue of $240.14M, while shares trade around $17.21 with a low PE of about 7.9.
• Insider activity was mixed: the EVP sold 9,000 shares and major shareholder Mutual Insurance Co Donegal bought 9,000 shares; insiders own 2.75% of the stock and institutions hold roughly 28%.

Donegal Group (NASDAQ:DGICA - Get Free Report) had its price objective lowered by Keefe, Bruyette & Woods from $19.50 to $19.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has a "market perform" rating on the insurance provider's stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 10.41% from the company's previous close.

DGICA has been the topic of a number of other research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Donegal Group in a report on Wednesday, January 21st. Zacks Research cut shares of Donegal Group from a "strong-buy" rating to a "hold" rating in a report on Friday, December 19th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $19.00.

Donegal Group Stock Performance

Shares of DGICA traded down $0.03 during trading hours on Tuesday, hitting $17.21. The stock had a trading volume of 50,097 shares, compared to its average volume of 123,264. The firm has a market capitalization of $636.73 million, a PE ratio of 7.86 and a beta of 0.05. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39. Donegal Group has a 12 month low of $16.43 and a 12 month high of $21.12. The stock has a fifty day moving average price of $17.73 and a 200 day moving average price of $18.92.

Donegal Group (NASDAQ:DGICA - Get Free Report) last posted its earnings results on Thursday, February 19th. The insurance provider reported $0.50 earnings per share for the quarter, missing analysts' consensus estimates of $0.52 by ($0.02). The firm had revenue of $240.14 million during the quarter, compared to the consensus estimate of $241.10 million. Donegal Group had a net margin of 8.11% and a return on equity of 12.81%. Analysts anticipate that Donegal Group will post 1.2 EPS for the current year.

Insider Activity

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

Institutional Trading of Donegal Group

A number of hedge funds and other institutional investors have recently modified their holdings of DGICA. CANADA LIFE ASSURANCE Co raised its position in shares of Donegal Group by 31.6% during the 4th 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. Strs Ohio increased its stake in Donegal Group by 3.7% in the 4th quarter. Strs Ohio now owns 28,300 shares of the insurance provider's stock worth $565,000 after buying an additional 1,000 shares in the last quarter. Public Employees Retirement System of Ohio increased its stake in Donegal Group by 8.9% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 12,215 shares of the insurance provider's stock worth $237,000 after buying an additional 1,000 shares in the last quarter. Qube Research & Technologies Ltd raised its holdings in Donegal Group by 1.0% during the third quarter. Qube Research & Technologies Ltd now owns 132,848 shares of the insurance provider's stock valued at $2,576,000 after acquiring an additional 1,274 shares during the period. Finally, Versant Capital Management Inc raised its holdings in Donegal Group by 79.1% during the third quarter. Versant Capital Management Inc now owns 3,009 shares of the insurance provider's stock valued at $58,000 after acquiring an additional 1,329 shares during the period. 27.96% of the stock is owned by hedge funds and other institutional investors.

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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