Donegal Group (NASDAQ:DGICB) Stock Falls 6.6% - Here's What Happened

Key Points

• Donegal Group shares fell 6.6% to $18.119, with trading volume about 60% below the average session volume.
• Analysts maintain a “Hold” rating, while the company’s latest quarterly results exceeded expectations with earnings per share of $0.49 versus the $0.42 consensus estimate.
• Donegal Group declared a quarterly dividend of $0.175 per share, equivalent to $0.70 annually and a 3.9% yield; Lewis Asset Management also initiated a 11,469-share position.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report)'s share price fell 6.6% on Friday. The company traded as low as $17.25 and last traded at $18.1190. Approximately 1,886 shares traded hands during trading, a decline of 60% from the average session volume of 4,683 shares. The stock had previously closed at $19.40.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Donegal Group in a report on Monday. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Hold".

Donegal Group Trading Up 3.2%

The company's 50 day simple moving average is $22.97 and its 200 day simple moving average is $20.58. 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 has a market cap of $667.05 million, a price-to-earnings ratio of 10.10 and a beta of 0.04.

Donegal Group (NASDAQ:DGICB - Get Free Report) last issued 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. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%. The firm had revenue of $232.25 million during the quarter, compared to analysts' expectations of $231.53 million.

Donegal Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were issued a $0.1750 dividend. The ex-dividend date of this dividend was Friday, July 31st. This represents a $0.70 annualized dividend and a yield of 3.9%. Donegal Group's dividend payout ratio is currently 39.33%.

Institutional Inflows and Outflows

An institutional investor recently bought a new stake in Donegal Group stock. Lewis Asset Management LLC purchased a new position in shares of Donegal Group, Inc. (NASDAQ:DGICB - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor 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.

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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