Selective Insurance Group (NASDAQ:SIGI) Shares Gap Down on Disappointing Earnings

Shares of Selective Insurance Group, Inc. (NASDAQ:SIGI) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $102.28, but opened at $96.86. Selective Insurance Group shares last traded at $94.55, with a volume of 34,514 shares traded.

The insurance provider reported $1.33 earnings per share for the quarter, missing the consensus estimate of $1.88 by ($0.55). Selective Insurance Group had a return on equity of 14.43% and a net margin of 8.57%. The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same period in the previous year, the company earned $1.44 earnings per share. The business’s revenue for the quarter was up 16.5% on a year-over-year basis.

Analyst Ratings Changes

A number of brokerages have recently commented on SIGI. JMP Securities reissued a “market perform” rating on shares of Selective Insurance Group in a report on Monday, April 15th. Piper Sandler reissued a “neutral” rating and set a $104.00 price objective on shares of Selective Insurance Group in a report on Monday, April 1st. Oppenheimer reissued an “outperform” rating and set a $120.00 price objective on shares of Selective Insurance Group in a report on Friday, April 5th. Royal Bank of Canada lowered their price objective on Selective Insurance Group from $108.00 to $105.00 and set a “sector perform” rating on the stock in a report on Friday, February 2nd. Finally, Keefe, Bruyette & Woods lowered their price objective on Selective Insurance Group from $111.00 to $109.00 and set a “market perform” rating on the stock in a report on Tuesday, February 6th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, Selective Insurance Group currently has a consensus rating of “Hold” and an average price target of $105.17.

Insiders Place Their Bets

In other Selective Insurance Group news, COO Brenda M. Hall sold 2,626 shares of the firm’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $105.88, for a total value of $278,040.88. Following the completion of the sale, the chief operating officer now owns 10,511 shares in the company, valued at approximately $1,112,904.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Selective Insurance Group

Several hedge funds and other institutional investors have recently modified their holdings of SIGI. SG Americas Securities LLC increased its holdings in Selective Insurance Group by 15.3% during the 3rd quarter. SG Americas Securities LLC now owns 1,718 shares of the insurance provider’s stock valued at $177,000 after purchasing an additional 228 shares in the last quarter. Raymond James & Associates increased its holdings in Selective Insurance Group by 2.1% during the 3rd quarter. Raymond James & Associates now owns 43,341 shares of the insurance provider’s stock valued at $4,471,000 after purchasing an additional 898 shares in the last quarter. Raymond James Financial Services Advisors Inc. increased its stake in shares of Selective Insurance Group by 91.8% in the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 11,587 shares of the insurance provider’s stock valued at $1,195,000 after buying an additional 5,547 shares during the period. Bank of New York Mellon Corp increased its stake in shares of Selective Insurance Group by 2.0% in the 3rd quarter. Bank of New York Mellon Corp now owns 923,764 shares of the insurance provider’s stock valued at $95,305,000 after buying an additional 18,508 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Selective Insurance Group by 19.2% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 12,691 shares of the insurance provider’s stock valued at $1,309,000 after buying an additional 2,040 shares during the period. Institutional investors own 82.88% of the company’s stock.

Selective Insurance Group Price Performance

The company has a 50 day moving average price of $103.63 and a 200 day moving average price of $102.75. The company has a market capitalization of $5.69 billion, a price-to-earnings ratio of 16.18, a PEG ratio of 0.75 and a beta of 0.55. The company has a current ratio of 0.30, a quick ratio of 0.30 and a debt-to-equity ratio of 0.18.

About Selective Insurance Group

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.