Donegal Group (NASDAQ:DGICA) Shares Gap Down Following Weak Earnings

Donegal Group, Inc. (NASDAQ:DGICA) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $18.61, but opened at $17.08. Donegal Group shares last traded at $17.68, with a volume of 21,453 shares traded.

The insurance provider reported $0.50 EPS for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.02). The firm had revenue of $240.14 million during the quarter, compared to analysts’ expectations of $241.10 million. Donegal Group had a net margin of 8.72% and a return on equity of 14.28%.

Donegal Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Tuesday, February 3rd were given a $0.1825 dividend. This represents a $0.73 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date was Tuesday, February 3rd. Donegal Group’s dividend payout ratio is presently 30.17%.

Analysts Set New Price Targets

DGICA has been the topic of a number of recent research reports. Keefe, Bruyette & Woods upped their price target on shares of Donegal Group from $20.00 to $21.00 and gave the company a “market perform” rating in a research note on Tuesday, January 6th. Zacks Research cut shares of Donegal Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 19th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Donegal Group in a report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Donegal Group presently has an average rating of “Moderate Buy” and an average target price of $21.00.

Insider Buying and Selling at Donegal Group

In other news, VP Kristi Spencer Altshuler sold 12,000 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $20.25, for a total value of $243,000.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Kevin Michael Sr Kraft, Sr. sold 4,500 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $20.02, for a total value of $90,090.00. Following the completion of the sale, the director directly owned 13,436 shares in the company, valued at $268,988.72. This represents a 25.09% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have bought 157,747 shares of company stock worth $3,033,510 and have sold 17,174 shares worth $346,833. 6.63% of the stock is currently owned by company insiders.

Institutional Trading of Donegal Group

A number of hedge funds and other institutional investors have recently modified their holdings of DGICA. Mercer Global Advisors Inc. ADV increased its stake in Donegal Group by 20.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 12,150 shares of the insurance provider’s stock valued at $243,000 after purchasing an additional 2,081 shares during the last quarter. Price T Rowe Associates Inc. MD acquired a new stake in shares of Donegal Group in the fourth quarter valued at $203,000. State of Wisconsin Investment Board boosted its holdings in Donegal Group by 104.5% during the fourth quarter. State of Wisconsin Investment Board now owns 23,021 shares of the insurance provider’s stock worth $460,000 after buying an additional 11,765 shares in the last quarter. MML Investors Services LLC grew its holdings in shares of Donegal Group by 28.4% in the 4th quarter. MML Investors Services LLC now owns 69,106 shares of the insurance provider’s stock worth $1,381,000 after acquiring an additional 15,289 shares during the last quarter. Finally, Mariner LLC lifted its stake in Donegal Group by 9.9% during the fourth quarter. Mariner LLC now owns 14,874 shares of the insurance provider’s stock valued at $297,000 after buying an additional 1,342 shares in the last quarter. 27.96% of the stock is owned by hedge funds and other institutional investors.

Donegal Group Stock Down 4.6%

The business’s 50-day moving average price is $19.43 and its 200-day moving average price is $19.10. The firm has a market capitalization of $650.73 million, a PE ratio of 7.34 and a beta of 0.04. The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.06.

Donegal Group Company Profile

Donegal Group, Inc (NASDAQ: DGICA) is a property and casualty insurance holding company headquartered in Marietta, Pennsylvania. Through a network of independent agencies, the company offers a suite of personal and commercial insurance products. Its underwriting subsidiaries provide homeowners, automobile, farmowner, commercial multi-peril, surety and umbrella coverages designed to meet the needs of individuals, families and businesses.

The company’s origins date back to 1925 with the formation of Donegal Mutual Insurance Company to serve rural communities in Pennsylvania.