Safety Insurance Group (NASDAQ:SAFT) Sets New 1-Year High - Still a Buy?

Key Points

• Safety Insurance Group shares reached a new 52-week high of $103.57, giving the company a market capitalization of approximately $1.52 billion. Analysts maintain a consensus “Hold” rating after several recent rating upgrades.
• The insurer missed quarterly earnings expectations, reporting a loss of $0.72 per share versus the $1.45 consensus estimate, while revenue was roughly in line at $314.67 million. It continues to pay a $0.92 quarterly dividend, equivalent to a 3.6% yield.
• A major shareholder sold 1.24 million shares worth about $127.8 million, contributing to more than $134.6 million in insider sales over the past 90 days. Institutional investors remain heavily invested, owning approximately 81% of outstanding shares.

Shares of Safety Insurance Group, Inc. (NASDAQ:SAFT - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $103.57 and last traded at $103.39, with a volume of 374230 shares changing hands. The stock had previously closed at $103.19.

Analysts Set New Price Targets

Several analysts have commented on the stock. Weiss Ratings upgraded shares of Safety Insurance Group from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 24th. Zacks Research raised Safety Insurance Group to a "hold" rating in a research note on Wednesday, May 27th. Finally, Wall Street Zen upgraded Safety Insurance Group from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Two analysts have rated the stock with a Hold rating, According to MarketBeat.com, Safety Insurance Group presently has an average rating of "Hold".

Safety Insurance Group Stock Up 0.2%

The firm has a market cap of $1.52 billion, a P/E ratio of 24.44 and a beta of 0.21. The firm's 50 day moving average is $75.91 and its two-hundred day moving average is $75.51. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.06.

Safety Insurance Group (NASDAQ:SAFT - Get Free Report) last issued its earnings results on Wednesday, May 6th. The insurance provider reported ($0.72) EPS for the quarter, missing the consensus estimate of $1.45 by ($2.17). The firm had revenue of $314.67 million during the quarter, compared to the consensus estimate 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 anticipate that Safety Insurance Group, Inc. will post 4.75 EPS for the current fiscal year.

Safety Insurance Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Monday, June 1st were paid a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend was Monday, June 1st. Safety Insurance Group's dividend payout ratio (DPR) is presently 87.00%.

Insiders Place Their Bets

In other Safety Insurance Group news, major shareholder Corp Srb sold 1,240,352 shares of Safety Insurance Group stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $103.07, for a total transaction of $127,843,080.64. Following the transaction, the insider directly owned 473,387 shares in the company, valued at approximately $48,791,998.09. The trade was a 72.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders sold 1,316,109 shares of company stock worth $134,654,987 in the last 90 days. Insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Safety Insurance Group

A number of hedge funds have recently modified their holdings of SAFT. Bank of America Corp DE grew its position in shares of Safety Insurance Group by 5.8% in the 1st quarter. Bank of America Corp DE now owns 24,877 shares of the insurance provider's stock valued at $1,807,000 after purchasing an additional 1,356 shares during the period. Quantinno Capital Management LP lifted its stake in Safety Insurance Group by 16.8% in the first quarter. Quantinno Capital Management LP now owns 19,525 shares of the insurance provider's stock valued at $1,418,000 after buying an additional 2,813 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Safety Insurance Group by 0.3% in the first quarter. Renaissance Technologies LLC now owns 140,400 shares of the insurance provider's stock valued at $10,199,000 after buying an additional 400 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Safety Insurance Group by 44.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 67,915 shares of the insurance provider's stock valued at $4,933,000 after buying an additional 21,018 shares during the period. Finally, Sei Investments Co. increased its position in shares of Safety Insurance Group by 23.9% during the first quarter. Sei Investments Co. now owns 3,189 shares of the insurance provider's stock worth $232,000 after acquiring an additional 615 shares in the last quarter. Institutional investors and hedge funds own 81.04% of the company's stock.

Safety Insurance Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.