Donegal Group (NASDAQ:DGICB) Shares Gap Down - Should You Sell?

Key Points

• Donegal Group shares opened sharply lower, falling from a prior close of $24.64 to $23.17 before trading around $23.85.
• Analyst sentiment remains neutral: Weiss Ratings reiterated a “Hold” rating, and the stock has a consensus “Hold” rating from one covering analyst.
• The company recently exceeded quarterly earnings expectations, reporting $0.49 in EPS versus $0.42 expected, while paying a quarterly dividend of $0.175, equivalent to a 2.9% annual yield.

Shares of Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $24.64, but opened at $23.17. Donegal Group shares last traded at $23.8450, with a volume of 208 shares traded.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Donegal Group in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, Donegal Group presently has a consensus rating of "Hold".

Donegal Group Stock Performance

The stock has a market capitalization of $885.13 million, a price-to-earnings ratio of 13.40 and a beta of 0.03. 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 50-day moving average of $23.17 and a 200 day moving average of $19.62.

Donegal Group (NASDAQ:DGICB - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The insurance provider reported $0.49 EPS for the quarter, topping the consensus estimate of $0.42 by $0.07. The company had revenue of $232.25 million during the quarter, compared to analysts' expectations of $231.53 million. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%.

Donegal Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were given a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Friday, July 31st. Donegal Group's dividend payout ratio (DPR) is currently 39.33%.

Institutional Investors Weigh In On Donegal Group

An institutional investor recently bought a new position in Donegal Group stock. Raymond James Financial Inc. purchased a new stake in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 5,231 shares of the insurance provider's stock, valued at approximately $93,000. 1.19% of the stock is currently owned by hedge funds and other institutional investors.

About Donegal Group

Donegal Group Inc, an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four 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.

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