Safety Insurance Group (NASDAQ:SAFT) Stock Crosses Above 200 Day Moving Average - What's Next?

Key Points

• Safety Insurance Group shares crossed above their 200-day moving average, reaching $103.74 and closing near $103.35, compared with a 200-day average of $77.63.
• Analysts’ views have improved, with recent upgrades resulting in a consensus “Moderate Buy” rating. The company also exceeded quarterly EPS expectations, reporting $2.03 versus the $2.00 consensus.
• Safety Insurance announced a quarterly dividend of $0.92 per share, equivalent to an annualized $3.68 payout and a 3.6% yield; however, insiders have sold more than $134 million of stock over the past three months.

Safety Insurance Group, Inc. (NASDAQ:SAFT - Get Free Report)'s share price passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $77.63 and traded as high as $103.74. Safety Insurance Group shares last traded at $103.35, with a volume of 179,217 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on SAFT shares. Wall Street Zen raised Safety Insurance Group from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Weiss Ratings raised Safety Insurance Group from a "hold (c+)" rating to a "buy (b)" rating in a research note on Tuesday. Finally, Zacks Research raised Safety Insurance Group to a "hold" rating in a research note on Wednesday, May 27th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy".

Safety Insurance Group Stock Down 0.2%

The company has a market cap of $1.52 billion, a P/E ratio of 22.27 and a beta of 0.17. The company has a current ratio of 0.41, a quick ratio of 0.39 and a debt-to-equity ratio of 0.06. The firm's 50 day moving average price is $83.16 and its 200-day moving average price is $77.63.

Safety Insurance Group (NASDAQ:SAFT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The insurance provider reported $2.03 EPS for the quarter, topping the consensus estimate of $2.00 by $0.03. Safety Insurance Group had a net margin of 5.33% and a return on equity of 7.23%. The company had revenue of $325.68 million during the quarter, compared to analysts' expectations of $325.68 million. As a group, equities research analysts expect that Safety Insurance Group, Inc. will post 4.75 EPS for the current year.

Safety Insurance Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Tuesday, September 1st. Safety Insurance Group's payout ratio is currently 79.31%.

Insider Buying and Selling

In other Safety Insurance Group news, major shareholder Corp Srb sold 1,240,352 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $103.07, for a total transaction of $127,843,080.64. Following the completion of the sale, the insider owned 473,387 shares in the company, valued at approximately $48,791,998.09. The trade was a 72.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last three months, insiders have sold 1,316,109 shares of company stock worth $134,654,987. 2.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in Safety Insurance Group in the second quarter valued at about $171,385,000. Goldman Sachs Group Inc. lifted its stake in Safety Insurance Group by 353.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 306,554 shares of the insurance provider's stock valued at $23,884,000 after buying an additional 238,946 shares during the period. Bank of New York Mellon Corp acquired a new position in Safety Insurance Group in the second quarter valued at about $10,513,000. AQR Capital Management LLC boosted its holdings in Safety Insurance Group by 62.6% during 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 last quarter. Finally, Millennium Management LLC boosted its holdings in Safety Insurance Group by 224.8% during the third quarter. Millennium Management LLC now owns 139,755 shares of the insurance provider's stock worth $9,879,000 after buying an additional 96,728 shares during the last quarter. 81.04% of the stock is currently 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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