Selective Insurance Group, Inc. (NASDAQ:SIGI) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Selective Insurance Group, Inc. has received a consensus recommendation of "Reduce" from analysts, with two sell ratings, four hold ratings, and one buy rating, while the average 1-year price target is $87.33.
• The company recently reported earnings of $1.31 per share, missing estimates, with a net margin of 7.50% and a return on equity of 12.61%.
• Selective Insurance Group declared a $0.38 quarterly dividend to be paid on September 2nd, with an annualized dividend yield of 2.0%.

Selective Insurance Group, Inc. (NASDAQ:SIGI - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the seven analysts that are currently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $87.3333.

A number of research firms have recently commented on SIGI. Wall Street Zen raised Selective Insurance Group from a "hold" rating to a "buy" rating in a report on Thursday, May 15th. Keefe, Bruyette & Woods cut their target price on Selective Insurance Group from $92.00 to $84.00 and set a "market perform" rating on the stock in a research report on Monday, July 28th. Morgan Stanley lowered Selective Insurance Group from an "equal weight" rating to an "underweight" rating and cut their target price for the company from $86.00 to $72.00 in a research report on Tuesday, August 5th. BMO Capital Markets set a $88.00 price target on Selective Insurance Group and gave the stock an "outperform" rating in a research note on Tuesday, August 5th. Finally, Piper Sandler dropped their price target on Selective Insurance Group from $88.00 to $79.00 and set a "neutral" rating on the stock in a research note on Friday, July 25th.

Insider Transactions at Selective Insurance Group

In related news, EVP Joseph Eppers acquired 1,402 shares of the stock in a transaction dated Friday, July 25th. The stock was purchased at an average cost of $76.82 per share, with a total value of $107,701.64. Following the completion of the purchase, the executive vice president directly owned 12,492 shares in the company, valued at $959,635.44. This trade represents a 12.64% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Robert Kelly Doherty purchased 1,500 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were acquired at an average cost of $77.00 per share, with a total value of $115,500.00. Following the completion of the transaction, the director directly owned 27,110 shares of the company's stock, valued at $2,087,470. The trade was a 5.86% increase in their position. The disclosure for this purchase can be found here. Over the last quarter, insiders bought 10,602 shares of company stock valued at $817,440. Corporate insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Selective Insurance Group

Institutional investors and hedge funds have recently bought and sold shares of the company. Olde Wealth Management LLC bought a new position in Selective Insurance Group during the first quarter valued at $28,000. Parallel Advisors LLC boosted its stake in Selective Insurance Group by 219.5% during the second quarter. Parallel Advisors LLC now owns 361 shares of the insurance provider's stock valued at $31,000 after buying an additional 248 shares during the period. Amundi grew its position in Selective Insurance Group by 398.7% during the first quarter. Amundi now owns 389 shares of the insurance provider's stock worth $36,000 after buying an additional 311 shares in the last quarter. Quarry LP purchased a new position in Selective Insurance Group during the fourth quarter worth about $38,000. Finally, Brooklyn Investment Group purchased a new position in Selective Insurance Group during the first quarter worth about $38,000. 82.88% of the stock is owned by institutional investors.

Selective Insurance Group Stock Performance

SIGI opened at $77.91 on Wednesday. The company has a market capitalization of $4.74 billion, a PE ratio of 12.75 and a beta of 0.47. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.33 and a quick ratio of 0.33. The business has a fifty day simple moving average of $82.58 and a 200 day simple moving average of $85.41. Selective Insurance Group has a 1 year low of $71.75 and a 1 year high of $103.56.

Selective Insurance Group (NASDAQ:SIGI - Get Free Report) last announced its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.31 earnings per share for the quarter, missing the consensus estimate of $1.55 by ($0.24). The company had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.32 billion. Selective Insurance Group had a net margin of 7.50% and a return on equity of 12.61%. During the same period in the prior year, the firm earned ($1.10) earnings per share. Research analysts expect that Selective Insurance Group will post 7.62 EPS for the current year.

Selective Insurance Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Stockholders of record on Friday, August 15th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.52 annualized dividend and a dividend yield of 2.0%. Selective Insurance Group's dividend payout ratio is 24.88%.

About Selective Insurance Group

Selective Insurance Group, Inc, together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products.

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