Donegal Group (NASDAQ:DGICA) Shares Cross Below 50 Day Moving Average - What's Next?

Key Points

• Donegal Group shares slipped below their 50-day moving average, reaching $18.42 before last trading at $18.68; the average was $18.71.
• The insurer beat quarterly forecasts, reporting EPS of $0.50 versus $0.44 expected and revenue of $237.66 million versus $214.12 million expected.
• Analyst sentiment was broadly neutral: the consensus rating was Hold with a $20 price target. Donegal also announced a $0.1925 quarterly dividend, equivalent to a 4.1% annualized yield.

Shares of Donegal Group, Inc. (NASDAQ:DGICA - Get Free Report) crossed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $18.71 and traded as low as $18.42. Donegal Group shares last traded at $18.68, with a volume of 104,569 shares trading hands.

Analyst Ratings Changes

Several research firms recently weighed in on DGICA. Weiss Ratings raised shares of Donegal Group from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, August 28th. Zacks Research raised shares of Donegal Group from a "strong sell" rating to a "hold" rating in a report on Friday, October 16th. Finally, Keefe, Bruyette & Woods boosted their target price on shares of Donegal Group from $18.00 to $20.00 and gave the company a "market perform" rating in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $20.00.

Donegal Group Stock Performance

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 stock has a market cap of $693.40 million, a P/E ratio of 9.99 and a beta of -0.03. The stock has a 50-day simple moving average of $18.71 and a 200-day simple moving average of $18.15.

Donegal Group (NASDAQ:DGICA - Get Free Report) last posted its earnings results on Thursday, October 29th. The insurance provider reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.44 by $0.06. Donegal Group had a net margin of 7.24% and a return on equity of 10.49%. The firm had revenue of $237.66 million during the quarter, compared to analysts' expectations of $214.12 million. Research analysts forecast that Donegal Group, Inc. will post 1.75 earnings per share for the current year.

Donegal Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Monday, November 2nd will be paid a $0.1925 dividend. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $0.77 annualized dividend and a yield of 4.1%. Donegal Group's dividend payout ratio is presently 41.18%.

Insider Activity at Donegal Group

In other news, CFO Jeffrey Miller sold 21,000 shares of the company's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $19.23, for a total transaction of $403,830.00. Following the completion of the transaction, the chief financial officer directly owned 27,176 shares in the company, valued at approximately $522,594.48. This represents a 43.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Kevin Burke sold 24,000 shares of the stock in a transaction on Friday, September 11th. The shares were sold at an average price of $19.23, for a total value of $461,520.00. Following the completion of the transaction, the insider 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 disclosure for this sale is available in the SEC filing. In the last 90 days, insiders acquired 220,437 shares of company stock worth $4,218,669 and sold 78,108 shares worth $1,511,869. Insiders own 2.75% of the company's stock.

Hedge Funds Weigh In On Donegal Group

Several large investors have recently bought and sold shares of the company. Commonwealth Equity Services LLC increased its stake in shares of Donegal Group by 6.7% in the third quarter. Commonwealth Equity Services LLC now owns 21,290 shares of the insurance provider's stock valued at $379,000 after buying an additional 1,336 shares during the period. State of Wyoming acquired a new stake in Donegal Group during the 3rd quarter worth approximately $177,000. Pinnacle Associates Ltd. grew its holdings in Donegal Group by 3.5% during the 3rd quarter. Pinnacle Associates Ltd. now owns 96,138 shares of the insurance provider's stock worth $1,710,000 after acquiring an additional 3,264 shares during the last quarter. Nisa Investment Advisors LLC grew its holdings in Donegal Group by 214.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 5,889 shares of the insurance provider's stock worth $105,000 after acquiring an additional 4,016 shares during the last quarter. Finally, IFP Advisors Inc grew its holdings in 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 during the last quarter. 27.96% of the stock is currently owned by institutional investors.

About Donegal Group

Donegal Group Inc NASDAQ: DGICA is an insurance holding company that, through its insurance subsidiaries, provides property and casualty insurance products to individuals and businesses. The company operates under the strategic direction of Donegal Mutual Insurance Company, which owns a controlling interest in Donegal Group.

Its personal insurance offerings include automobile, homeowners, dwelling fire, farmowners and related coverage. Donegal Group also provides commercial insurance products, including businessowners, commercial automobile, commercial property and workers' compensation coverage, along with other specialized property and casualty policies.

Founded in 1986 and headquartered in Marietta, Pennsylvania, Donegal Group serves policyholders through independent agents across a broad group of states, primarily in the Mid-Atlantic, Southern and Midwestern regions of the United States.

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