Mutual Insurance Co Donegal Purchases 20,000 Shares of Donegal Group (NASDAQ:DGICA) Stock

Key Points

• Mutual Insurance Co Donegal purchased 20,000 shares of Donegal Group stock at an average price of $17.84, increasing their ownership stake to approximately 13.5 million shares valued at around $240.9 million.
• Donegal Group declared a quarterly dividend of $0.1825 per share, offering an annual yield of 4.0%.
• Analysts have a consensus rating of "Moderate Buy" for Donegal Group's stock with an average target price of $18.00.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) major shareholder Mutual Insurance Co Donegal acquired 20,000 shares of the firm's stock in a transaction on Friday, August 29th. The shares were purchased at an average cost of $17.84 per share, for a total transaction of $356,800.00. Following the completion of the purchase, the insider directly owned 13,500,977 shares of the company's stock, valued at approximately $240,857,429.68. The trade was a 0.15% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Major shareholders that own at least 10% of a company's stock are required to disclose their sales and purchases with the SEC.

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

• On Thursday, August 28th, Mutual Insurance Co Donegal acquired 8,032 shares of Donegal Group stock. The stock was purchased at an average price of $17.61 per share, for a total transaction of $141,443.52.
• On Tuesday, August 26th, Mutual Insurance Co Donegal purchased 15,815 shares of Donegal Group stock. The shares were acquired at an average cost of $17.45 per share, with a total value of $275,971.75.
• On Wednesday, August 27th, Mutual Insurance Co Donegal bought 15,509 shares of Donegal Group stock. The shares were bought at an average price of $17.49 per share, with a total value of $271,252.41.

Donegal Group Trading Up 1.7%

Donegal Group stock traded up $0.31 during mid-day trading on Tuesday, hitting $18.20. 99,886 shares of the company's stock were exchanged, compared to its average volume of 128,901. Donegal Group, Inc. has a fifty-two week low of $14.06 and a fifty-two week high of $21.12. The company has a quick ratio of 0.40, a current ratio of 0.40 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $664.30 million and a P/E ratio of 7.64. The company's 50 day simple moving average is $18.06 and its 200-day simple moving average is $18.50.

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

Donegal Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Friday, August 1st were issued a dividend of $0.1825 per share. The ex-dividend date of this dividend was Friday, August 1st. This represents a $0.73 annualized dividend and a yield of 4.0%. Donegal Group's dividend payout ratio (DPR) is currently 30.67%.

Analysts Set New Price Targets

A number of analysts have issued reports on DGICA shares. Wall Street Zen downgraded shares of Donegal Group from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Janney Montgomery Scott upgraded shares of Donegal Group from a "neutral" rating to a "buy" rating in a research report on Tuesday. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $18.00.

Hedge Funds Weigh In On Donegal Group

Several institutional investors have recently modified their holdings of the business. Allworth Financial LP grew its stake in shares of Donegal Group by 477.2% during the 2nd quarter. Allworth Financial LP now owns 2,961 shares of the insurance provider's stock worth $59,000 after acquiring an additional 2,448 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in Donegal Group by 422.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider's stock valued at $74,000 after purchasing an additional 2,975 shares during the period. Tower Research Capital LLC TRC grew its position in Donegal Group by 443.9% during the second quarter. Tower Research Capital LLC TRC now owns 4,928 shares of the insurance provider's stock worth $99,000 after buying an additional 4,022 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Donegal Group in the second quarter worth approximately $101,000. Finally, CWM LLC lifted its holdings in shares of Donegal Group by 78.0% during the 1st quarter. CWM LLC now owns 5,163 shares of the insurance provider's stock worth $101,000 after acquiring an additional 2,263 shares during the last quarter. 27.96% of the stock is owned by institutional investors.

About Donegal Group

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.

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