Donegal Group (NASDAQ:DGICB) Stock Price Down 7.1% - What's Next?

Key Points

• Donegal Group shares fell 7.1% to about $23.75 in mid-day trading, while volume was roughly 30% below the average.
• Analysts maintain a cautious outlook: Weiss Ratings reiterated a “hold (c)” rating, and the stock has an overall “Hold” consensus rating.
• The insurer’s latest quarterly results exceeded expectations, with earnings per share of $0.49 versus estimates of $0.42; it also declared a quarterly dividend of $0.175 per share, representing a 3.0% yield.

Donegal Group, Inc. (NASDAQ:DGICB - Get Free Report) shares fell 7.1% on Wednesday. The company traded as low as $23.99 and last traded at $23.7450. 3,102 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 4,431 shares. The stock had previously closed at $25.56.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Donegal Group in a research note on Monday, September 21st. One research analyst has rated the stock with a Hold rating. According to MarketBeat.com, the company has an average rating of "Hold".

Donegal Group Stock Down 8.0%

The firm has a market capitalization of $873.08 million, a price-to-earnings ratio of 13.21 and a beta of 0.01. The company has a 50-day moving average price of $21.29 and a 200-day moving average price of $19.59.

Donegal Group (NASDAQ:DGICB - Get Free Report) last released 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 Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Monday, November 2nd will be paid a dividend of $0.1750 per share. This represents a $0.70 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend is Monday, November 2nd. Donegal Group's payout ratio is 39.33%.

Donegal Group Company Profile

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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