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

Donegal Group, Inc. (NASDAQ:DGICA) gapped down before the market opened 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.

The insurance provider reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.02). The firm had revenue of $240.14 million during the quarter, compared to the consensus estimate of $241.10 million. Donegal Group had a return on equity of 14.28% and a net margin of 8.72%.

Donegal Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Shareholders of record on Tuesday, February 3rd were given a dividend of $0.1825 per share. The ex-dividend date of this dividend was Tuesday, February 3rd. This represents a $0.73 annualized dividend and a yield of 4.2%. Donegal Group’s dividend payout ratio (DPR) is currently 30.17%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Keefe, Bruyette & Woods increased their price target on shares of Donegal Group from $20.00 to $21.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 6th. Weiss Ratings reiterated a “buy (b)” rating on shares of Donegal Group in a research note on Wednesday, January 21st. Finally, Zacks Research downgraded Donegal Group from a “strong-buy” rating to a “hold” rating in a report on Friday, December 19th. Two 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, the stock has a consensus rating of “Moderate Buy” and an average target price of $21.00.

Insider Buying and Selling at Donegal Group

In other news, Director Kevin Michael Sr Kraft, Sr. sold 4,500 shares of Donegal Group stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $20.02, for a total transaction of $90,090.00. Following the sale, the director 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 filing with the SEC, which is available at the SEC website. Also, VP Kristi Spencer Altshuler sold 12,000 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $20.25, for a total transaction of $243,000.00. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have acquired 106,343 shares of company stock valued at $2,115,435 and have sold 17,174 shares valued at $346,833. Insiders own 6.63% of the company’s stock.

Institutional Investors Weigh In On Donegal Group

Several large investors have recently bought and sold shares of the business. State of Alaska Department of Revenue purchased a new position in shares of Donegal Group in the 3rd quarter worth $26,000. Smartleaf Asset Management LLC grew its position in Donegal Group by 576.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the insurance provider’s stock worth $55,000 after acquiring an additional 2,341 shares in the last quarter. Versant Capital Management Inc grew its position in Donegal Group by 79.1% in the third quarter. Versant Capital Management Inc now owns 3,009 shares of the insurance provider’s stock worth $58,000 after acquiring an additional 1,329 shares in the last quarter. Allworth Financial LP increased its stake in Donegal Group by 477.2% during 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 last quarter. Finally, EverSource Wealth Advisors LLC raised its position in Donegal Group by 422.6% during the second 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 period. Institutional investors own 27.96% of the company’s stock.

Donegal Group Price Performance

The firm has a market capitalization of $643.40 million, a P/E ratio of 7.26 and a beta of 0.04. The firm has a 50 day moving average price of $19.38 and a 200-day moving average price of $19.09. The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.06.

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.