Donegal Group (NASDAQ:DGICB) Shares Gap Down - Here's Why

Key Points

• Donegal Group shares fell sharply at the open, dropping from a prior close of $25.56 to $23.70 before last trading at $24.38 on relatively light volume.
• Analysts maintain a cautious view, with Weiss Ratings reiterating a “hold (c)” rating and the overall analyst consensus remaining “Hold.”
• The insurer recently beat quarterly earnings expectations with EPS of $0.46 versus $0.44 expected and announced a $0.175 quarterly dividend, equivalent to a 3.2% yield.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report)'s stock price gapped down before the market opened on Thursday. The stock had previously closed at $25.56, but opened at $23.70. Donegal Group shares last traded at $24.38, with a volume of 3,728 shares trading hands.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Donegal Group in a report on Monday, September 21st. One investment analyst has rated the stock with a Hold rating. According to MarketBeat, the stock presently has an average rating of "Hold".

Donegal Group Stock Performance

The firm has a 50 day simple moving average of $21.33 and a 200-day simple moving average of $19.63. 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 company has a market cap of $823.49 million, a price-to-earnings ratio of 12.46 and a beta of 0.01.

Donegal Group (NASDAQ:DGICB - Get Free Report) last posted its earnings results on Thursday, October 29th. The insurance provider reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.44 by $0.02. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%.

Donegal Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Monday, November 2nd will be issued a $0.1750 dividend. This represents a $0.70 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Monday, November 2nd. Donegal Group's dividend payout ratio is currently 39.33%.

Donegal Group Company Profile

Donegal Group Inc is an insurance holding company headquartered in Marietta, Pennsylvania. Established in 1986, the company operates through regional property and casualty insurance subsidiaries and is affiliated with Donegal Mutual Insurance Company.

Donegal Group provides a range of personal, commercial, and agricultural insurance products. Its offerings generally include private passenger automobile, homeowners, commercial automobile, commercial property, business liability, workers' compensation, and farm insurance.

The company distributes its policies primarily through independent insurance agencies and serves policyholders across multiple states in the Mid-Atlantic, Midwestern, and Southern regions of the United States.

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