Donegal Group (NASDAQ:DGICB) Shares Gap Up - What's Next?

Key Points

• Donegal Group shares jumped, opening at $21.01 versus a prior close of $19.70 and last trading around $22.13.
• The insurer’s latest quarterly results exceeded expectations, with EPS of $0.49 versus the $0.42 consensus and revenue of $232.25 million. Analysts maintain a consensus “Hold” rating.
• Donegal Group declared a quarterly dividend of $0.175 per share, equivalent to $0.70 annually and a 2.9% yield; the dividend is payable November 16 to shareholders of record November 2.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) gapped up before the market opened on Thursday. The stock had previously closed at $19.70, but opened at $21.01. Donegal Group shares last traded at $22.1260, with a volume of 5,880 shares.

Analyst Ratings Changes

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

Donegal Group Stock Performance

The stock has a market cap of $894.59 million, a P/E ratio of 13.54 and a beta of 0.01. 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 firm's 50-day moving average price is $21.31 and its 200-day moving average price is $20.81.

Donegal Group (NASDAQ:DGICB - Get Free Report) last issued its 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 firm had revenue of $232.25 million during the quarter, compared to analyst estimates 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 firm also recently declared a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Monday, November 2nd will be paid a dividend of $0.1750 per share. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $0.70 dividend on an annualized basis and a yield of 2.9%. Donegal Group's dividend payout ratio is presently 39.33%.

Institutional Trading of Donegal Group

An institutional investor recently bought a new stake in Donegal Group stock. Lewis Asset Management LLC purchased a new position in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 11,469 shares of the insurance provider's stock, valued at approximately $203,000. 1.19% of the stock is owned by hedge funds and other institutional investors.

About Donegal Group

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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