Donegal Group (NASDAQ:DGICA) Shares Gap Down on Disappointing Earnings

Donegal Group, Inc. (NASDAQ:DGICA)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. 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). Donegal Group had a return on equity of 14.28% and a net margin of 8.72%.The business had revenue of $240.14 million during the quarter, compared to the consensus estimate of $241.10 million.

Donegal Group Announces Dividend

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

Analyst Ratings Changes

A number of equities analysts have commented on the company. Keefe, Bruyette & Woods boosted their price objective on Donegal Group from $20.00 to $21.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 6th. Zacks Research cut Donegal Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 19th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Donegal Group in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $21.00.

Insider Transactions at Donegal Group

In other Donegal Group news, Director Kevin Michael Sr Kraft, Sr. sold 4,500 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $20.02, for a total value of $90,090.00. Following the completion of the transaction, the director directly owned 13,436 shares in the company, valued at $268,988.72. This trade represents a 25.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Mutual Insurance Co Donegal bought 51,404 shares of the firm’s stock in a transaction that occurred on Friday, November 21st. The shares were acquired at an average cost of $17.86 per share, for a total transaction of $918,075.44. Following the completion of the acquisition, the insider directly owned 13,784,361 shares in the company, valued at $246,188,687.46. The trade was a 0.37% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders acquired 157,747 shares of company stock valued at $3,033,510 and sold 17,174 shares valued at $346,833. Company insiders own 6.63% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DGICA. State of Alaska Department of Revenue acquired a new stake in shares of Donegal Group in the third quarter valued at approximately $26,000. Smartleaf Asset Management LLC increased its stake in shares of Donegal Group by 576.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the insurance provider’s stock valued at $55,000 after buying an additional 2,341 shares during the period. Versant Capital Management Inc lifted its holdings in shares of Donegal Group by 79.1% during the third quarter. Versant Capital Management Inc now owns 3,009 shares of the insurance provider’s stock worth $58,000 after purchasing an additional 1,329 shares during the period. Allworth Financial LP lifted its stake in shares of Donegal Group by 477.2% in the second quarter. Allworth Financial LP now owns 2,961 shares of the insurance provider’s stock worth $59,000 after acquiring an additional 2,448 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Donegal Group by 422.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider’s stock valued at $74,000 after purchasing an additional 2,975 shares during the last quarter. Institutional investors own 27.96% of the company’s stock.

Donegal Group Stock Performance

The stock has a fifty day simple moving average of $19.43 and a two-hundred day simple moving average of $19.10. The stock has a market capitalization of $650.73 million, a price-to-earnings ratio of 7.34 and a beta of 0.04. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.39 and a current ratio of 0.39.

About Donegal Group

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.