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 following a stronger than expected earnings report. The stock traded as high as $101.25 and last traded at $96.7790, with a volume of 95,852 shares changing hands. The stock had previously closed at $91.74.

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

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 (DPR) is 21.34%.

Selective Insurance Group News Roundup

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.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on SIGI. Morgan Stanley increased their price objective on shares of Selective Insurance Group from $72.00 to $80.00 and gave the stock an “underweight” rating in a research note on Monday, July 6th. BMO Capital Markets reiterated a “market perform” rating on shares of Selective Insurance Group in a research report on Wednesday. Oppenheimer restated an “outperform” rating and issued a $115.00 price objective on shares of Selective Insurance Group in a report on Tuesday, October 13th. Weiss Ratings downgraded shares of Selective Insurance Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, September 1st. Finally, Piper Sandler decreased their target price on 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. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Selective Insurance Group currently has a consensus rating of “Hold” and an average target price of $101.00.

Insider Activity

In other news, EVP Michael Lanza sold 17,100 shares of the business’s stock in a transaction dated 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 directly owned 16,565 shares of the company’s stock, valued at $1,557,772.60. The trade was a 50.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.82% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Selective Insurance Group

A number of hedge funds have recently added to or reduced their stakes in the stock. Nisa Investment Advisors LLC lifted its holdings in shares of Selective Insurance Group by 6.4% in the third quarter. Nisa Investment Advisors LLC now owns 17,776 shares of the insurance provider’s stock valued at $1,486,000 after purchasing an additional 1,064 shares in the last quarter. IFP Advisors Inc raised its position in Selective Insurance Group by 51.3% in the 3rd quarter. IFP Advisors Inc now owns 596 shares of the insurance provider’s stock valued at $50,000 after buying an additional 202 shares during the last quarter. Burns Matteson Capital Management LLC purchased a new stake in Selective Insurance Group in the 3rd quarter valued at $494,000. Farther Finance Advisors LLC lifted its stake in Selective Insurance Group by 51.2% during the 3rd quarter. Farther Finance Advisors LLC now owns 812 shares of the insurance provider’s stock valued at $68,000 after acquiring an additional 275 shares in the last quarter. Finally, Cim Investment Management Inc. lifted its stake in Selective Insurance Group by 7.4% during the 2nd quarter. Cim Investment Management Inc. now owns 5,476 shares of the insurance provider’s stock valued at $531,000 after acquiring an additional 378 shares in the last quarter. Institutional investors and hedge funds own 82.88% of the company’s stock.

Selective Insurance Group Stock Up 6.2%

The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $5.80 billion, a PE ratio of 12.08 and a beta of 0.26. The stock’s fifty day simple moving average is $88.83 and its 200-day simple moving average is $89.76.

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.