Selective Insurance Group (NASDAQ:SIGI) Trading 7.9% Higher After Dividend Announcement

Key Points

• Selective's shares jumped 7.9% intraday after the company announced a quarterly dividend of $0.43 per share payable June 1 (record/ex-dividend date May 15), implying a $1.72 annualized payout and a 2.1% yield.
• The company missed expectations for the quarter, reporting EPS of $1.69 versus $1.81 consensus and revenue of $1.23B versus $1.29B, although revenue rose 5.7% year-over-year.
• Analysts' consensus is a Hold with an average price target of $83.60; the stock trades at about an 11.2x PE and has a market cap near $5.02 billion.

Selective Insurance Group, Inc. (NASDAQ:SIGI - Get Free Report)'s share price traded up 7.9% during mid-day trading on Thursday following a dividend announcement from the company. The company traded as high as $84.31 and last traded at $83.7550. 129,848 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 558,872 shares. The stock had previously closed at $77.63.The newly announced dividend which will be paid on Monday, June 1st. Investors of record on Friday, May 15th will be given a dividend of $0.43 per share. The ex-dividend date is Friday, May 15th. This represents a $1.72 annualized dividend and a dividend yield of 2.1%. Selective Insurance Group's dividend payout ratio (DPR) is currently 22.96%.

Wall Street Analyst Weigh In

SIGI has been the subject of several research analyst reports. Royal Bank Of Canada restated an "outperform" rating and set a $95.00 price target on shares of Selective Insurance Group in a report on Monday, March 23rd. Piper Sandler raised their price target on Selective Insurance Group from $79.00 to $86.00 and gave the company a "neutral" rating in a report on Monday, February 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Selective Insurance Group in a report on Wednesday, March 25th. Finally, 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 Tuesday, April 7th. 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 stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $83.60.

Selective Insurance Group Trading Up 8.0%

The stock has a market cap of $5.02 billion, a PE ratio of 11.19 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. The stock has a fifty day moving average price of $79.81 and a 200 day moving average price of $80.93.

Selective Insurance Group (NASDAQ:SIGI - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The insurance provider reported $1.69 EPS for the quarter, missing analysts' consensus estimates of $1.81 by ($0.12). The company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.29 billion. Selective Insurance Group had a return on equity of 14.23% and a net margin of 8.74%.Selective Insurance Group's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.76 EPS. Equities analysts expect that Selective Insurance Group, Inc. will post 7.71 EPS for the current year.

Hedge Funds Weigh In On Selective Insurance Group

A number of large investors have recently bought and sold shares of the business. Apollon Wealth Management LLC boosted its holdings in Selective Insurance Group by 34.7% during the 1st quarter. Apollon Wealth Management LLC now owns 9,488 shares of the insurance provider's stock valued at $715,000 after acquiring an additional 2,443 shares during the period. Pictet Asset Management Holding SA boosted its holdings in Selective Insurance Group by 7.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 8,969 shares of the insurance provider's stock valued at $676,000 after acquiring an additional 599 shares during the period. Louisiana State Employees Retirement System purchased a new position in Selective Insurance Group during the 1st quarter valued at $1,312,000. Baron Wealth Management LLC boosted its holdings in Selective Insurance Group by 10.1% during the 1st quarter. Baron Wealth Management LLC now owns 3,461 shares of the insurance provider's stock valued at $261,000 after acquiring an additional 317 shares during the period. Finally, Hsbc Holdings PLC purchased a new position in Selective Insurance Group during the 4th quarter valued at $3,115,000. Hedge funds and other institutional investors own 82.88% of the company's stock.

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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