Selective Insurance Group (NASDAQ:SIGI) Stock Price Down 5.8% - Should You Sell?

Key Points

• Selective Insurance Group shares fell by 5.8% to $76.46, with trading volume declining by 39% from the average.
• Several analysts have cut their price targets for the stock, with a consensus rating of "Hold" and an average target price of $81.00.
• The company has increased its quarterly dividend to $0.43, representing a yield of 2.2%, and will be paid out on December 1st.

Selective Insurance Group, Inc. (NASDAQ:SIGI - Get Free Report) shares dropped 5.8% during trading on Thursday . The stock traded as low as $75.20 and last traded at $76.46. Approximately 283,686 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 468,452 shares. The stock had previously closed at $81.18.

Analysts Set New Price Targets

SIGI has been the topic of several research analyst reports. Piper Sandler lowered their price target on Selective Insurance Group from $88.00 to $79.00 and set a "neutral" rating on the stock in a research report on Friday, July 25th. Keefe, Bruyette & Woods cut their price target on Selective Insurance Group from $92.00 to $84.00 and set a "market perform" rating for the company in a report on Monday, July 28th. BMO Capital Markets set a $88.00 price target on Selective Insurance Group and gave the stock an "outperform" rating in a report on Tuesday, August 5th. Weiss Ratings restated a "hold (c-)" rating on shares of Selective Insurance Group in a research report on Wednesday, October 8th. Finally, Morgan Stanley lifted their price target on shares of Selective Insurance Group from $72.00 to $73.00 and gave the stock an "underweight" rating in a research note on Tuesday, October 7th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Selective Insurance Group currently has a consensus rating of "Hold" and an average target price of $81.00.

Selective Insurance Group Stock Performance

The firm has a fifty day moving average of $79.82 and a 200-day moving average of $83.79. The firm has a market cap of $4.70 billion, a P/E ratio of 12.65 and a beta of 0.39. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 0.28.

Selective Insurance Group (NASDAQ:SIGI - Get Free Report) last released its earnings results on Wednesday, October 22nd. The insurance provider reported $1.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.71 by $0.04. The company had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.35 billion. Selective Insurance Group had a net margin of 7.50% and a return on equity of 12.61%. The company's revenue was up 9.3% compared to the same quarter last year. During the same period in the prior year, the company posted $1.40 EPS. Research analysts predict that Selective Insurance Group, Inc. will post 7.62 earnings per share for the current fiscal year.

Selective Insurance Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 1st. Shareholders of record on Friday, November 14th will be paid a $0.43 dividend. The ex-dividend date of this dividend is Friday, November 14th. This is a positive change from Selective Insurance Group's previous quarterly dividend of $0.38. This represents a $1.72 annualized dividend and a yield of 2.2%. Selective Insurance Group's payout ratio is currently 24.88%.

Insider Activity

In other news, Director Terrence W. Cavanaugh acquired 2,000 shares of the firm's stock in a transaction that occurred on Friday, July 25th. The stock was purchased at an average price of $75.72 per share, for a total transaction of $151,440.00. Following the completion of the acquisition, the director owned 25,295 shares in the company, valued at $1,915,337.40. This trade represents a 8.59% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Thomas A. Mccarthy acquired 2,500 shares of the company's stock in a transaction that occurred on Monday, July 28th. The shares were acquired at an average cost of $77.42 per share, for a total transaction of $193,550.00. Following the purchase, the director directly owned 18,746 shares in the company, valued at $1,451,315.32. This trade represents a 15.39% increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 10,602 shares of company stock valued at $817,440. 1.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Olde Wealth Management LLC bought a new position in Selective Insurance Group during the 1st quarter worth $28,000. Parallel Advisors LLC raised 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 worth $31,000 after acquiring an additional 248 shares in the last quarter. Amundi increased its holdings in Selective Insurance Group by 398.7% in the 1st quarter. Amundi now owns 389 shares of the insurance provider's stock worth $36,000 after purchasing an additional 311 shares in the last quarter. Brooklyn Investment Group bought a new position in shares of Selective Insurance Group during the first quarter valued at $38,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Selective Insurance Group by 752.4% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 537 shares of the insurance provider's stock worth $49,000 after buying an additional 474 shares during the period. Institutional investors and hedge funds own 82.88% of the company's stock.

Selective Insurance Group Company Profile

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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