Insider Buying: Donegal Group (NASDAQ:DGICA) Major Shareholder Purchases 20,000 Shares of Stock

Key Points

• Mutual Insurance Co Donegal acquired 20,000 shares of Donegal Group stock at an average price of $18.37, increasing their ownership stake by 0.15% to a total of 13,540,417 shares valued at approximately $248.74 million.
• Donegal Group's shares saw a 2.3% increase and currently trade at $18.81, showing a 52-week range of $14.06 to $21.12.
• The company recently declared a quarterly dividend of $0.1825 per share, representing a 3.9% yield and a payout ratio of 30.67%.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock in a transaction that occurred on Wednesday, September 3rd. The stock was purchased at an average price of $18.37 per share, with a total value of $367,400.00. Following the completion of the purchase, the insider directly owned 13,540,417 shares in the company, valued at $248,737,460.29. This trade represents a 0.15% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Major shareholders that own 10% or more of a company's shares are required to disclose their sales and purchases with the SEC.

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

• On Thursday, September 4th, Mutual Insurance Co Donegal purchased 19,212 shares of Donegal Group stock. The stock was purchased at an average price of $19.22 per share, with a total value of $369,254.64.
• On Tuesday, September 2nd, Mutual Insurance Co Donegal purchased 19,440 shares of Donegal Group stock. The stock was purchased at an average price of $18.27 per share, with a total value of $355,168.80.
• On Friday, August 29th, Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock. The stock was purchased at an average price of $17.84 per share, with a total value of $356,800.00.
• On Thursday, August 28th, Mutual Insurance Co Donegal purchased 8,032 shares of Donegal Group stock. The stock was purchased at an average price of $17.61 per share, with a total value of $141,443.52.
• On Tuesday, August 26th, Mutual Insurance Co Donegal purchased 15,815 shares of Donegal Group stock. The stock was purchased at an average price of $17.45 per share, with a total value of $275,971.75.
• On Wednesday, August 27th, Mutual Insurance Co Donegal purchased 15,509 shares of Donegal Group stock. The stock was purchased at an average price of $17.49 per share, with a total value of $271,252.41.

Donegal Group Stock Performance

DGICA traded up $0.03 during trading on Tuesday, hitting $19.32. The stock had a trading volume of 67,080 shares, compared to its average volume of 131,414. The firm has a market cap of $705.19 million and a price-to-earnings ratio of 8.11. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.40 and a quick ratio of 0.40. The company has a 50 day moving average price of $17.97 and a 200-day moving average price of $18.63. Donegal Group, Inc. has a one year low of $14.06 and a one year high of $21.12.

Donegal Group (NASDAQ:DGICA - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The insurance provider reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.07. The firm had revenue of $233.81 million during the quarter, compared to analysts' expectations of $247.21 million. Donegal Group had a return on equity of 14.33% and a net margin of 8.33%. As a group, research analysts predict that Donegal Group, Inc. will post 1.2 EPS for the current year.

Donegal Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were issued a $0.1825 dividend. The ex-dividend date of this dividend was Friday, August 1st. This represents a $0.73 annualized dividend and a yield of 3.8%. Donegal Group's payout ratio is currently 30.67%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on DGICA shares. Wall Street Zen cut Donegal Group from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Zacks Research raised Donegal Group from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 3rd. Finally, Janney Montgomery Scott raised Donegal Group from a "neutral" rating to a "buy" rating in a report on Tuesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Buy" and an average target price of $18.00.

Hedge Funds Weigh In On Donegal Group

A number of institutional investors have recently modified their holdings of DGICA. ProShare Advisors LLC acquired a new position in shares of Donegal Group during the 2nd quarter worth $6,343,000. CSM Advisors LLC bought a new stake in Donegal Group during the 2nd quarter worth $3,699,000. American Century Companies Inc. grew its position in Donegal Group by 294.1% during the 2nd quarter. American Century Companies Inc. now owns 149,611 shares of the insurance provider's stock worth $2,996,000 after acquiring an additional 111,647 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its position in Donegal Group by 33.0% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 356,154 shares of the insurance provider's stock worth $7,132,000 after acquiring an additional 88,462 shares during the last quarter. Finally, Teacher Retirement System of Texas grew its position in Donegal Group by 78.7% during the 2nd quarter. Teacher Retirement System of Texas now owns 191,376 shares of the insurance provider's stock worth $3,832,000 after acquiring an additional 84,263 shares during the last quarter. Institutional investors and hedge funds own 27.96% of the company's stock.

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.