Selective Insurance Group (NASDAQ:SIGI) Reaches New 12-Month High After Better-Than-Expected Earnings

Selective Insurance Group, Inc. (NASDAQ:SIGI) shares hit a new 52-week high on Friday after the company announced better than expected quarterly earnings. The company traded as high as $101.25 and last traded at $96.7790, with a volume of 95,852 shares. The stock had previously closed at $91.74.

The insurance provider reported $2.37 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.46. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.17 billion. Selective Insurance Group had a net margin of 9.10% and a return on equity of 14.51%. During the same period in the previous year, the firm earned $1.85 EPS.

Selective Insurance Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be given a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 2.0%. The ex-dividend date is Monday, November 16th. This is a positive change from Selective Insurance Group’s previous quarterly dividend of $0.43. Selective Insurance Group’s dividend payout ratio is presently 21.34%.

Trending Headlines about Selective Insurance Group

Here are the key news stories impacting Selective Insurance Group this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Selective reported adjusted EPS of $2.37, above the $1.91 consensus estimate and up from $1.85 a year earlier. GAAP net income rose 12% to $126.4 million, or $2.11 per diluted share. Selective Insurance Q3 Earnings Top Estimates
• Positive Sentiment: Shareholder returns were increased. The board raised the quarterly dividend 11.6% to $0.48 per share, equivalent to $1.92 annually and an indicated yield of about 2.1%. It also authorized a new $200 million share-repurchase program, which could support per-share earnings and signal confidence in the company’s valuation. Selective Insurance Announces Equity Buyback
• Positive Sentiment: Investment income and underwriting remained solid. After-tax net investment income increased 16% to $127.3 million, while the 96.8% GAAP combined ratio indicates underwriting profitability. Full-year guidance calls for a 96.5%–97.5% combined ratio and $490 million of after-tax net investment income. Selective Reports Q3 Results
• Neutral Sentiment: Selective appointed Jacob E. Rothfuss as executive vice president and president of Standard Lines, effective no later than April 2027. The leadership change may improve execution, but its financial impact is not yet clear. Selective Appoints Jacob E. Rothfuss
• Negative Sentiment: Premium volume and revenue declined year over year. Net premiums written fell 7% to $1.123 billion, and total revenue declined 2% to approximately $1.326 billion. This highlights slower insurance growth despite the earnings beat.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on SIGI shares. Morgan Stanley lifted their target price on shares of Selective Insurance Group from $72.00 to $80.00 and gave the company an “underweight” rating in a research note on Monday, July 6th. Piper Sandler reduced their price objective on shares of Selective Insurance Group from $105.00 to $97.00 and set a “neutral” rating for the company in a research note on Monday, September 28th. Weiss Ratings lowered shares of Selective Insurance Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, September 1st. Royal Bank Of Canada increased their price objective on shares of Selective Insurance Group from $110.00 to $115.00 and gave the company an “outperform” rating in a research note on Monday, July 27th. Finally, Keefe, Bruyette & Woods lifted their price objective on Selective Insurance Group from $101.00 to $102.00 and gave the company a “market perform” rating in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Selective Insurance Group currently has a consensus rating of “Hold” and a consensus price target of $101.00.

Insider Activity

In other news, EVP Michael Lanza sold 17,100 shares of Selective Insurance Group stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $94.04, for a total transaction of $1,608,084.00. Following the completion of the sale, the executive vice president owned 16,565 shares in the company, valued at $1,557,772.60. The trade was a 50.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.82% of the company’s stock.

Institutional Investors Weigh In On Selective Insurance Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of Selective Insurance Group during the second quarter worth $754,557,000. Wellington Management Group LLP bought a new stake in Selective Insurance Group in the 2nd quarter valued at approximately $77,149,000. Bank of America Corp DE acquired a new position in Selective Insurance Group during the second quarter worth $63,423,000. Jupiter Topco LLC bought a new position in shares of Selective Insurance Group in the 2nd quarter valued at about $47,558,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Selective Insurance Group during the 2nd quarter worth approximately $47,482,000. Institutional investors own 82.88% of the company’s stock.

Selective Insurance Group Stock Performance

The firm has a market capitalization of $5.80 billion, a price-to-earnings ratio of 12.08 and a beta of 0.26. The stock’s fifty day moving average is $88.83 and its two-hundred day moving average is $89.76. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.26.

Selective Insurance Group Company Profile

Selective Insurance Group, Inc is a holding company for a group of property and casualty insurance subsidiaries. Founded in 1926 and headquartered in Branchville, New Jersey, the company provides insurance products and related services primarily through a network of independent agents.

Selective serves commercial, personal and public-sector customers. Its commercial offerings include business owners policies, commercial automobile, workers’ compensation, general liability, commercial property and other specialty coverages.