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

Key Points

• Donegal Group shares jumped from a $18.58 close to a $20.59 open, later trading at $20.42 on low volume of 224 shares.
• The insurer exceeded quarterly expectations, reporting EPS of $0.49 versus the $0.42 consensus and revenue of $232.25 million, slightly above estimates.
• Analysts maintain a “Hold” consensus; Donegal also declared a quarterly dividend of $0.175, equal to a $0.70 annualized payout and a 3.4% yield.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $18.58, but opened at $20.59. Donegal Group shares last traded at $20.42, with a volume of 224 shares traded.

Wall Street Analyst Weigh In

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

Donegal Group Price Performance

The stock has a market capitalization of $757.99 million, a PE ratio of 11.47 and a beta of 0.04. 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 firm's fifty day moving average price is $23.41 and its two-hundred day moving average price is $20.54.

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

Donegal Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were given a $0.175 dividend. The ex-dividend date was Friday, July 31st. This represents a $0.70 annualized dividend and a yield of 3.4%. Donegal Group's dividend payout ratio (DPR) is presently 39.33%.

Institutional Inflows and Outflows

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

Donegal Group Company Profile

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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