Selective Insurance Group (NASDAQ:SIGI) Posts Quarterly Earnings Results, Misses Expectations By $0.12 EPS

Key Points

• Selective missed expectations, reporting $1.69 EPS for the quarter versus the $1.81 consensus (a $0.12 shortfall), with a return on equity of 14.23% and a net margin of 8.74%.
• The stock fell about 4% to $77.63 on heavy volume; the company has a market cap of $4.65B, a P/E of 10.36, and recently paid a quarterly dividend of $0.43 (annualized $1.72) for a 2.2% yield.
• Institutional ownership is high (82.88%) with several hedge funds increasing stakes, while analysts hold a consensus “Hold” rating and an average target price of $83.60.

Selective Insurance Group (NASDAQ:SIGI - Get Free Report) posted its quarterly earnings results on Wednesday. The insurance provider reported $1.69 earnings per share for the quarter, missing the consensus estimate of $1.81 by ($0.12), FiscalAI reports. Selective Insurance Group had a return on equity of 14.23% and a net margin of 8.74%.

Selective Insurance Group Stock Down 4.0%

Shares of SIGI stock traded down $3.25 during mid-day trading on Wednesday, hitting $77.63. The company's stock had a trading volume of 1,363,747 shares, compared to its average volume of 561,199. The stock has a market cap of $4.65 billion, a price-to-earnings ratio of 10.36 and a beta of 0.26. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.32 and a current ratio of 0.32. Selective Insurance Group has a 52-week low of $71.75 and a 52-week high of $93.38. The business has a 50-day moving average price of $80.03 and a 200 day moving average price of $80.96.

Selective Insurance Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Stockholders of record on Friday, February 13th were paid a $0.43 dividend. The ex-dividend date was Friday, February 13th. This represents a $1.72 annualized dividend and a dividend yield of 2.2%. Selective Insurance Group's payout ratio is currently 22.96%.

Hedge Funds Weigh In On Selective Insurance Group

Hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC boosted its holdings in shares of Selective Insurance Group by 56.3% during the 4th quarter. AQR Capital Management LLC now owns 4,059,547 shares of the insurance provider's stock valued at $339,662,000 after acquiring an additional 1,462,838 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Selective Insurance Group by 239.1% during the fourth quarter. First Trust Advisors LP now owns 1,036,519 shares of the insurance provider's stock valued at $86,726,000 after purchasing an additional 730,890 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Selective Insurance Group by 40.0% during the second quarter. Bank of America Corp DE now owns 725,980 shares of the insurance provider's stock valued at $62,906,000 after purchasing an additional 207,258 shares during the last quarter. Franklin Resources Inc. lifted its position in Selective Insurance Group by 58.9% during the third quarter. Franklin Resources Inc. now owns 552,880 shares of the insurance provider's stock valued at $44,822,000 after purchasing an additional 204,947 shares during the period. Finally, Balyasny Asset Management L.P. bought a new position in Selective Insurance Group during the third quarter valued at approximately $14,700,000. Hedge funds and other institutional investors own 82.88% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Weiss Ratings restated a "hold (c)" rating on shares of Selective Insurance Group in a research note on Wednesday, March 25th. Keefe, Bruyette & Woods cut their price target on Selective Insurance Group from $92.00 to $84.00 and set a "market perform" rating on the stock in a research note on Tuesday, April 7th. Piper Sandler upped their price target on Selective Insurance Group from $79.00 to $86.00 and gave the stock a "neutral" rating in a research note on Monday, February 2nd. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $95.00 price target on shares of Selective Insurance Group in a research note on Monday, March 23rd. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $83.60.

About Selective Insurance Group

Selective Insurance Group, Inc is an insurance holding company headquartered in Branchville, New Jersey. The organization traces its roots to a regional provider of property and casualty coverage and became a publicly traded holding company following its initial public offering in 1999. Since its formation, Selective has expanded through strategic acquisitions and organic growth initiatives to broaden its product offerings and strengthen its market position.

The company's core business encompasses a broad range of property and casualty insurance products designed to serve both commercial and personal lines customers.

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