Donegal Group (NASDAQ:DGICA) Posts Earnings Results, Misses Expectations By $0.28 EPS

Donegal Group (NASDAQ:DGICA) posted its quarterly earnings results on Thursday. The insurance provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.28), FiscalAI reports. Donegal Group had a net margin of 8.11% and a return on equity of 12.81%.

Donegal Group Stock Performance

NASDAQ:DGICA traded down $0.81 during mid-day trading on Thursday, hitting $16.82. The stock had a trading volume of 179,656 shares, compared to its average volume of 118,773. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. The company has a 50 day simple moving average of $17.32 and a 200-day simple moving average of $18.71. The stock has a market capitalization of $622.39 million, a price-to-earnings ratio of 7.68 and a beta of 0.05. Donegal Group has a 52 week low of $16.43 and a 52 week high of $21.12.

Donegal Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 1st will be given a $0.1925 dividend. The ex-dividend date is Friday, May 1st. This represents a $0.77 annualized dividend and a yield of 4.6%. This is a boost from Donegal Group’s previous quarterly dividend of $0.18. Donegal Group’s payout ratio is 35.16%.

Insider Activity

In other Donegal Group news, major shareholder Mutual Insurance Co Donegal acquired 9,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was acquired at an average cost of $17.63 per share, with a total value of $158,670.00. Following the acquisition, the insider directly owned 13,937,704 shares of the company’s stock, valued at $245,721,721.52. This represents a 0.06% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP William Daniel Delamater sold 9,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $17.63, for a total value of $158,670.00. Following the completion of the transaction, the executive vice president directly owned 2,012 shares of the company’s stock, valued at approximately $35,471.56. The trade was a 81.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 2.75% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Donegal Group

Several large investors have recently bought and sold shares of the stock. Smartleaf Asset Management LLC boosted its holdings 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 acquiring an additional 2,341 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in Donegal Group by 422.6% in the second quarter. EverSource Wealth Advisors LLC now owns 3,679 shares of the insurance provider’s stock worth $74,000 after purchasing an additional 2,975 shares during the period. CANADA LIFE ASSURANCE Co lifted its position in Donegal Group by 31.6% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 3,733 shares of the insurance provider’s stock worth $75,000 after purchasing an additional 896 shares during the period. Tower Research Capital LLC TRC boosted its stake in Donegal Group by 443.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,928 shares of the insurance provider’s stock valued at $99,000 after purchasing an additional 4,022 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new position in shares of Donegal Group during the 2nd quarter valued at $101,000. Institutional investors and hedge funds own 27.96% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have recently issued reports on DGICA. Keefe, Bruyette & Woods reduced their price target on shares of Donegal Group from $19.50 to $19.00 and set a “market perform” rating on the stock in a research report on Tuesday, April 7th. Weiss Ratings reiterated a “buy (b)” rating on shares of Donegal Group in a research note on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $19.00.

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.