Donegal Group (NASDAQ:DGICA) Stock Price Down 6.6% Following Weak Earnings

Shares of Donegal Group, Inc. (NASDAQ:DGICA) traded down 6.6% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $17.34 and last traded at $17.3730. 7,152 shares traded hands during trading, a decline of 94% from the average session volume of 117,115 shares. The stock had previously closed at $18.61.

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 12.99% and a net margin of 8.11%.The company 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 disclosed a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Tuesday, February 3rd were given a $0.1825 dividend. The ex-dividend date of this dividend was Tuesday, February 3rd. This represents a $0.73 dividend on an annualized basis and a dividend yield of 4.2%. Donegal Group’s dividend payout ratio (DPR) is presently 30.17%.

Key Headlines Impacting Donegal Group

Here are the key news stories impacting Donegal Group this week:

• Positive Sentiment: Company emphasized record net income for the quarter and outlined strategic initiatives that management says support longer-term profitability, which could be constructive for investor confidence. Donegal Group Inc (DGICA) Q4 2025 Earnings Call Highlights: Record Net Income and Strategic …
• Neutral Sentiment: Full earnings-call transcript is available for investors who want the detailed commentary and management Q&A to assess growth/guidance nuances. Donegal Group Inc. (NASDAQ:DGICA) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Earnings slide presentation is posted (useful for line‑by‑line review of underwriting, investment results and reserve development). Donegal Group Inc. 2025 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Pre‑earnings preview coverage summarizing expectations and key metrics to watch. Donegal Group Inc (DGICA) Q4 2025 Earnings Report Preview: What To Expect
• Neutral Sentiment: Reported short‑interest data appears effectively zero and unchanged, so short covering/pressure is unlikely to explain the move. (Data note in filings/news items.)
• Negative Sentiment: The core driver of the decline: reported EPS of $0.50 missed the $0.52 consensus and revenue slightly trailed estimates — an outcome that prompted selling pressure despite positive commentary on net income. Donegal Group (NASDAQ:DGICA) Shares Gap Down on Disappointing Earnings
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target from $21.00 to $19.50 and assigned a “market perform” rating, which reduces analyst-driven upside and may have intensified the pullback. KBW cuts price target to $19.50, market perform

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on DGICA. Keefe, Bruyette & Woods lowered their price target on Donegal Group from $21.00 to $19.50 and set a “market perform” rating for the company in a report on Friday. Zacks Research cut shares of 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 note on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $19.50.

Insiders Place Their Bets

In other news, major shareholder Mutual Insurance Co Donegal acquired 28,000 shares of the business’s stock in a transaction on Tuesday, December 9th. The stock was bought at an average cost of $19.81 per share, for a total transaction of $554,680.00. Following the purchase, the insider owned 13,890,885 shares in the company, valued at approximately $275,178,431.85. This represents a 0.20% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Kevin Michael Sr Kraft, Sr. sold 4,500 shares of the stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $20.02, for a total value of $90,090.00. Following the transaction, the director directly owned 13,436 shares of the company’s stock, valued at $268,988.72. The trade was a 25.09% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders bought 106,343 shares of company stock worth $2,115,435 and sold 17,174 shares worth $346,833. Insiders own 6.63% of the company’s stock.

Hedge Funds Weigh In On Donegal Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Creative Planning raised its holdings in shares of Donegal Group by 22.5% during the 2nd quarter. Creative Planning now owns 151,135 shares of the insurance provider’s stock worth $3,026,000 after acquiring an additional 27,757 shares during the period. CWM LLC raised its stake in Donegal Group by 21.9% during the second quarter. CWM LLC now owns 6,293 shares of the insurance provider’s stock worth $126,000 after purchasing an additional 1,130 shares during the period. Acadian Asset Management LLC boosted its holdings in Donegal Group by 13.1% in the 2nd quarter. Acadian Asset Management LLC now owns 179,552 shares of the insurance provider’s stock valued at $3,591,000 after purchasing an additional 20,729 shares during the last quarter. Campbell & CO Investment Adviser LLC acquired a new position in Donegal Group in the 2nd quarter valued at about $939,000. Finally, Pinnacle Associates Ltd. increased its holdings in shares of Donegal Group by 49.6% during the 2nd quarter. Pinnacle Associates Ltd. now owns 54,446 shares of the insurance provider’s stock worth $1,090,000 after buying an additional 18,050 shares during the last quarter. Institutional investors and hedge funds own 27.96% of the company’s stock.

Donegal Group Trading Down 1.0%

The stock has a market cap of $637.17 million, a PE ratio of 7.94 and a beta of 0.04. The company’s 50-day moving average price is $19.32 and its 200 day moving average price is $19.10. 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.