Donegal Group (NASDAQ:DGICB) Shares Gap Up - Here's What Happened

Key Points

• Donegal Group shares opened sharply higher, rising from a prior close of $15.53 to an opening price of $16.46 before trading at $16.1850 on volume of 5,938 shares.
• Analysts maintain a cautious outlook: Weiss Ratings reaffirmed a “Hold (C)” rating, and MarketBeat reported a consensus “Hold” rating.
• The insurer exceeded quarterly expectations, reporting $0.49 in earnings per share versus the $0.42 consensus and revenue of $232.25 million. Donegal also pays a $0.175 quarterly dividend, equivalent to a 4.3% annual yield.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $15.53, but opened at $16.46. Donegal Group shares last traded at $16.1850, with a volume of 5,938 shares traded.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Donegal Group in a research report on Monday, September 21st. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, Donegal Group presently has a consensus rating of "Hold".

Donegal Group Price Performance

The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $600.77 million, a price-to-earnings ratio of 9.09 and a beta of 0.04. The company's 50-day simple moving average is $22.63 and its 200 day simple moving average is $20.61.

Donegal Group (NASDAQ:DGICB - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The insurance provider reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates 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 return on equity of 10.65% and a net margin of 7.38%.

Donegal Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were issued a $0.1750 dividend. This represents a $0.70 annualized dividend and a yield of 4.3%. The ex-dividend date was Friday, July 31st. Donegal Group's payout ratio is 39.33%.

Hedge Funds Weigh In On Donegal Group

A hedge fund recently bought a new position in Donegal Group stock. Lewis Asset Management LLC purchased a new stake in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 11,469 shares of the insurance provider's stock, valued at approximately $203,000. Institutional investors and hedge funds own 1.19% of the company's stock.

About Donegal Group

Donegal Group Inc is an insurance holding company that provides property and casualty insurance through a network of regional insurance subsidiaries. The company distributes its products primarily through independent insurance agents and serves individuals, families, farms, and businesses.

Its offerings include personal automobile, homeowners, dwelling fire, farmowners, and other personal insurance products, as well as commercial automobile, commercial property, businessowners, workers' compensation, and other commercial coverage.

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