Donegal Group (NASDAQ:DGICA) Shares Break Above Two Hundred Day Moving Average - Here's Why

Key Points

• Donegal Group shares briefly moved above their 200-day moving average, reaching $18.17 before closing at $18.02, while the 200-day average stood at $18.05.
• Analyst sentiment remains mixed, with one Buy, one Hold, and one Sell rating; the consensus rating is Hold with an average price target of $20.00.
• The insurer exceeded quarterly earnings and revenue expectations, reporting EPS of $0.53 versus $0.42 expected, and maintains a quarterly dividend of $0.1925, equivalent to a 4.3% annual yield.

Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $18.05 and traded as high as $18.17. Donegal Group shares last traded at $18.02, with a volume of 123,729 shares traded.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on DGICA. Weiss Ratings upgraded shares of Donegal Group from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, August 28th. Zacks Research cut shares of Donegal Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, September 17th. Finally, Keefe, Bruyette & Woods lifted their price objective on Donegal Group from $18.00 to $20.00 and gave the stock a "market perform" rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to 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 0.4%

The company has a market capitalization of $668.90 million, a PE ratio of 9.34 and a beta of -0.01. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39. The business's 50 day simple moving average is $18.96 and its 200 day simple moving average is $18.05.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The insurance provider reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.11. The company 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%. As a group, analysts anticipate that Donegal Group, Inc. will post 1.7 earnings per share for the current fiscal year.

Donegal Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, July 31st were paid a $0.1925 dividend. The ex-dividend date of this dividend was Friday, July 31st. This represents a $0.77 dividend on an annualized basis and a dividend yield of 4.3%. Donegal Group's payout ratio is presently 39.90%.

Insider Activity at Donegal Group

In other news, insider Kevin Burke sold 24,000 shares of the stock in a transaction 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 sale, the insider directly owned 13,870 shares in the company, valued at approximately $266,720.10. This trade represents a 63.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Jeffrey Miller sold 21,000 shares of Donegal Group stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $19.23, for a total value of $403,830.00. Following the completion of the transaction, the chief financial officer owned 27,176 shares of the company's stock, valued at $522,594.48. The trade was a 43.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders bought 220,437 shares of company stock valued at $4,218,669 and sold 111,108 shares valued at $2,153,119. 2.75% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Donegal Group

Several institutional investors have recently modified their holdings of DGICA. IFP Advisors Inc boosted its position in shares of Donegal Group by 27.8% during the 2nd quarter. IFP Advisors Inc now owns 9,214 shares of the insurance provider's stock worth $174,000 after acquiring an additional 2,004 shares in the last quarter. Allianz Asset Management GmbH purchased a new position in Donegal Group in the second quarter valued at approximately $220,000. Public Employees Retirement System of Ohio acquired a new stake in Donegal Group during the second quarter worth approximately $344,000. Ancora Advisors LLC acquired a new stake in Donegal Group during the second quarter worth approximately $273,000. Finally, Bank of America Corp DE lifted its position in shares of Donegal Group by 3.1% during the 1st quarter. Bank of America Corp DE now owns 73,820 shares of the insurance provider's stock worth $1,268,000 after buying an additional 2,243 shares during the last quarter. 27.96% of the stock is owned by hedge funds and other institutional investors.

About Donegal Group

Donegal Group Inc is an insurance holding company that provides property and casualty insurance through a network of independent insurance agents. The company operates through regional insurance subsidiaries affiliated with Donegal Mutual Insurance Company and serves individuals, families, farms, and businesses.

Its personal insurance products generally include automobile, homeowners, dwelling fire, renters, and farmowners coverage. Donegal Group also offers commercial insurance, including businessowners policies, commercial automobile, commercial package, workers' compensation, general liability, and related coverages.

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