Donegal Group (NASDAQ:DGICA) Share Price Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Donegal Group shares moved above their 200-day moving average, reaching $18.59 before closing at $18.23, while remaining below the 50-day average of $18.81.
• Analyst views are mixed, resulting in an overall “Hold” rating and an average price target of $20.00; ratings range from Buy to Sell.
• The company reported quarterly EPS of $0.53, exceeding estimates, and pays an annualized dividend of $0.77 per share, yielding about 4.2%.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report)'s share price passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $18.12 and traded as high as $18.59. Donegal Group shares last traded at $18.23, with a volume of 89,166 shares trading hands.

Analyst Ratings Changes

DGICA has been the topic of several research reports. Keefe, Bruyette & Woods boosted their price target on Donegal Group from $18.00 to $20.00 and gave the stock a "market perform" rating in a report on Wednesday, July 8th. Zacks Research lowered shares of Donegal Group from a "hold" rating to a "strong sell" rating in a report on Thursday, September 17th. Finally, Weiss Ratings upgraded shares of Donegal Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, August 28th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Donegal Group currently has an average rating of "Hold" and an average price target of $20.00.

Donegal Group Stock Down 1.7%

The firm has a market capitalization of $676.70 million, a price-to-earnings ratio of 9.45 and a beta of -0.03. The stock has a fifty day moving average of $18.81 and a two-hundred day moving average of $18.12. 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 (NASDAQ:DGICA - Get Free Report) last announced its earnings results on Thursday, July 30th. The insurance provider reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.11. The business had revenue of $241.12 million during the quarter, compared to analyst estimates of $231.53 million. Donegal Group had a return on equity of 10.65% and a net margin of 7.38%. Sell-side analysts anticipate that Donegal Group, Inc. will post 1.75 earnings per share for the current year.

Donegal Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were given a dividend of $0.1925 per share. This represents a $0.77 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date was Friday, July 31st. Donegal Group's dividend payout ratio (DPR) is 39.90%.

Insider Buying and Selling

In related news, insider Kevin Burke sold 24,000 shares of Donegal Group stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $19.23, for a total value of $461,520.00. Following the transaction, the insider directly owned 13,870 shares of the company's stock, valued at $266,720.10. The trade was a 63.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Noland Deas, Jr. sold 24,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $19.47, for a total value of $467,280.00. Following the completion of the sale, the senior vice president owned 3,523 shares in the company, valued at $68,592.81. The trade was a 87.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders acquired 220,437 shares of company stock valued at $4,218,669 and sold 111,108 shares valued at $2,153,119. Insiders own 2.75% of the company's stock.

Institutional Investors Weigh In On Donegal Group

Large investors have recently modified their holdings of the company. IFP Advisors Inc lifted its holdings in Donegal Group by 27.8% in the second quarter. IFP Advisors Inc now owns 9,214 shares of the insurance provider's stock valued at $174,000 after buying an additional 2,004 shares during the period. Amundi bought a new stake in Donegal Group during the first quarter valued at $206,000. Allianz Asset Management GmbH acquired a new stake in Donegal Group during the 2nd quarter worth about $220,000. QRG Capital Management Inc. acquired a new stake in Donegal Group during the 1st quarter worth about $223,000. Finally, Ancora Advisors LLC bought a new position in shares of Donegal Group in the 2nd quarter worth about $273,000. 27.96% of the stock is currently owned by institutional investors and hedge funds.

About Donegal Group

Donegal Group Inc is an insurance holding company that provides property and casualty insurance products to individuals and businesses in the United States. The company operates primarily through its insurance subsidiaries and markets its policies through a network of independent insurance agents.

Its personal insurance offerings include automobile, homeowners, renters, and other residential coverage. Donegal Group also provides commercial products such as commercial automobile, workers' compensation, businessowners, commercial package, and other property and liability insurance policies.

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