Safety Insurance Group (NASDAQ:SAFT) Sees Large Volume Increase - Time to Buy?

Key Points

• Safety Insurance Group shares traded at $103.33 during midday Monday, with 63,355 shares changing hands—41% below the prior session’s volume.
• Analysts remain cautious, with two Hold ratings producing a consensus “Hold” recommendation. The company missed quarterly EPS expectations, reporting a $0.72 loss per share versus the estimated $1.45 profit.
• Safety Insurance declared a quarterly dividend of $0.92, equivalent to an annualized $3.68 payout and a 3.6% yield. Institutional investors own 81.04% of the stock, while a major shareholder recently sold 34,272 shares.

Shares of Safety Insurance Group, Inc. (NASDAQ:SAFT - Get Free Report) saw unusually-strong trading volume on Monday . 63,355 shares traded hands during mid-day trading, a decline of 41% from the previous session's volume of 106,617 shares.The stock last traded at $103.33 and had previously closed at $103.20.

Wall Street Analysts Forecast Growth

SAFT has been the topic of a number of recent analyst reports. Wall Street Zen raised Safety Insurance Group from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Zacks Research upgraded Safety Insurance Group to a "hold" rating in a research report on Wednesday, May 27th. Finally, Weiss Ratings upgraded Safety Insurance Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold".

Safety Insurance Group Price Performance

The business has a 50-day simple moving average of $73.49 and a two-hundred day simple moving average of $74.75. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of 24.38 and a beta of 0.21.

Safety Insurance Group (NASDAQ:SAFT - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The insurance provider reported ($0.72) earnings per share (EPS) for the quarter, missing the consensus estimate of $1.45 by ($2.17). The firm had revenue of $314.67 million for the quarter, compared to analyst estimates of $315.01 million. Safety Insurance Group had a net margin of 4.94% and a return on equity of 6.31%. As a group, research analysts predict that Safety Insurance Group, Inc. will post 4.75 earnings per share for the current fiscal year.

Safety Insurance Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Monday, June 1st were given a $0.92 dividend. The ex-dividend date was Monday, June 1st. This represents a $3.68 annualized dividend and a yield of 3.6%. Safety Insurance Group's payout ratio is 87.00%.

Insider Buying and Selling at Safety Insurance Group

In other news, major shareholder Corp Srb sold 34,272 shares of the firm's stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $76.04, for a total transaction of $2,606,042.88. Following the completion of the transaction, the insider owned 1,757,733 shares in the company, valued at approximately $133,658,017.32. This trade represents a 1.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Safety Insurance Group

Large investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. increased its stake in Safety Insurance Group by 353.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 306,554 shares of the insurance provider's stock worth $23,884,000 after purchasing an additional 238,946 shares in the last quarter. AQR Capital Management LLC boosted its holdings in shares of Safety Insurance Group by 62.6% in the fourth quarter. AQR Capital Management LLC now owns 304,724 shares of the insurance provider's stock worth $23,741,000 after buying an additional 117,261 shares during the period. Millennium Management LLC increased its position in shares of Safety Insurance Group by 224.8% in the third quarter. Millennium Management LLC now owns 139,755 shares of the insurance provider's stock worth $9,879,000 after acquiring an additional 96,728 shares in the last quarter. Qube Research & Technologies Ltd increased its position in shares of Safety Insurance Group by 175.5% in the third quarter. Qube Research & Technologies Ltd now owns 116,269 shares of the insurance provider's stock worth $8,219,000 after acquiring an additional 74,059 shares in the last quarter. Finally, Two Sigma Investments LP raised its holdings in shares of Safety Insurance Group by 388.0% during the third quarter. Two Sigma Investments LP now owns 86,026 shares of the insurance provider's stock valued at $6,081,000 after acquiring an additional 68,399 shares during the period. 81.04% of the stock is owned by institutional investors.

About Safety Insurance Group

Safety Insurance Group, Inc is a publicly traded property and casualty insurance holding company incorporated in Massachusetts in 1994. Its principal subsidiary, Safety Insurance Company, traces its roots back to 1923 and has since evolved into a regional personal lines insurer. The company is headquartered in Boston, Massachusetts, and trades on the Nasdaq under the symbol SAFT.

Safety Insurance Group focuses primarily on private passenger automobile and homeowners insurance products, along with dwelling fire, umbrella liability, and certain commercial auto coverages.

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