Donegal Group (NASDAQ:DGICA) Stock Price Crosses Above 200 Day Moving Average – Here’s Why

Donegal Group, Inc. (NASDAQ:DGICA) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $18.08 and traded as high as $18.93. Donegal Group shares last traded at $18.8550, with a volume of 116,731 shares trading hands.

Analysts Set New Price Targets

A number of analysts have commented on the company. Keefe, Bruyette & Woods reduced their price objective on Donegal Group from $19.00 to $18.00 and set a “market perform” rating for the company in a research report on Friday, May 1st. Weiss Ratings upgraded shares of Donegal Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, Donegal Group has an average rating of “Moderate Buy” and a consensus price target of $18.00.

Donegal Group Price Performance

The company’s 50 day moving average price is $17.48 and its 200 day moving average price is $18.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.39 and a current ratio of 0.39. The company has a market cap of $714.69 million and a price-to-earnings ratio of 10.78.

Donegal Group (NASDAQ:DGICA) last announced its quarterly earnings results on Thursday, April 30th. The insurance provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.08). The firm had revenue of $236.00 million for the quarter, compared to the consensus estimate of $247.83 million. Donegal Group had a net margin of 6.77% and a return on equity of 10.31%. On average, equities research analysts predict that Donegal Group, Inc. will post 1.75 earnings per share for the current fiscal year.

Donegal Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $0.1925 dividend. This is a positive change from Donegal Group’s previous quarterly dividend of $0.18. This represents a $0.77 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend was Friday, May 1st. Donegal Group’s dividend payout ratio (DPR) is presently 43.02%.

Insiders Place Their Bets

In related news, major shareholder Mutual Insurance Co Donegal bought 9,682 shares of the company’s stock in a transaction on Friday, June 12th. The stock was bought at an average cost of $17.62 per share, with a total value of $170,596.84. Following the completion of the purchase, the insider owned 14,136,691 shares in the company, valued at approximately $249,088,495.42. The trade was a 0.07% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. In the last ninety days, insiders have bought 139,487 shares of company stock valued at $2,392,488. Company insiders own 2.75% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Bank of America Corp DE increased its stake in shares of Donegal Group by 3.1% in the 1st quarter. Bank of America Corp DE now owns 73,820 shares of the insurance provider’s stock valued at $1,268,000 after buying an additional 2,243 shares during the period. Amundi bought a new position in Donegal Group in the first quarter valued at about $206,000. Renaissance Technologies LLC boosted its holdings in Donegal Group by 5.8% in the first quarter. Renaissance Technologies LLC now owns 392,711 shares of the insurance provider’s stock valued at $6,747,000 after acquiring an additional 21,500 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in Donegal Group by 41.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 276,237 shares of the insurance provider’s stock worth $4,746,000 after purchasing an additional 80,614 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in Donegal Group by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,737,266 shares of the insurance provider’s stock worth $29,846,000 after purchasing an additional 7,345 shares during the last quarter. 27.96% of the stock is currently owned by institutional investors.

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.