Donegal Group (NASDAQ:DGICB) Shares Up 7% - Here's Why

Key Points

• Donegal Group shares rose 7% to $16.62, reaching as high as $17.19, despite trading volume falling 51% below the average.
• Analysts maintain a consensus “Hold” rating, while the company’s latest quarterly results beat expectations with EPS of $0.49 versus the $0.42 estimate.
• Donegal Group pays a quarterly dividend of $0.175, equivalent to $0.70 annually and a 4.2% yield; its latest quarter also produced $232.25 million in revenue.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) rose 7% during trading on Thursday. The stock traded as high as $17.19 and last traded at $16.62. 2,340 shares changed hands during trading, a decline of 51% from the average session volume of 4,761 shares. The stock had previously closed at $15.53.

Wall Street Analyst Weigh In

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

Donegal Group Stock Performance

The firm has a 50 day moving average of $22.52 and a two-hundred day moving average of $20.62. The stock has a market cap of $624.80 million, a PE ratio of 9.50 and a beta of 0.04. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.39 and a quick ratio of 0.39.

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

Donegal Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were given a $0.1750 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Friday, July 31st. Donegal Group's dividend payout ratio (DPR) is 39.33%.

Institutional Investors Weigh In On Donegal Group

An institutional investor recently bought a new position in Donegal Group stock. Lewis Asset Management LLC acquired a new stake in Donegal Group, Inc. (NASDAQ:DGICB - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 11,469 shares of the insurance provider's stock, valued at approximately $203,000. Institutional investors 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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