Donegal Group (NASDAQ:DGICA) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Donegal Group (NASDAQ:DGICA) announced its quarterly earnings data on Thursday. The insurance provider reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.46 by $0.07, Zacks reports. Donegal Group had a return on equity of 10.31% and a net margin of 6.77%.

Donegal Group Price Performance

DGICA stock traded up $0.52 during trading on Thursday, hitting $19.83. 96,839 shares of the company’s stock traded hands, compared to its average volume of 125,973. The business has a fifty day simple moving average of $18.07 and a 200 day simple moving average of $17.89. The stock has a market capitalization of $734.70 million and a price-to-earnings ratio of 11.01. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.39 and a current ratio of 0.39. Donegal Group has a 52 week low of $16.11 and a 52 week high of $21.06.

Donegal Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be issued a $0.1925 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $0.77 dividend on an annualized basis and a yield of 3.9%. Donegal Group’s payout ratio is currently 43.02%.

Insider Buying and Selling

In related news, major shareholder Mutual Insurance Co Donegal acquired 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was purchased at an average cost of $16.62 per share, for a total transaction of $166,200.00. Following the purchase, the insider directly owned 14,117,109 shares of the company’s stock, valued at $234,626,351.58. This trade represents a 0.07% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders have purchased a total of 139,487 shares of company stock valued at $2,392,488 over the last ninety days. Insiders own 2.75% of the company’s stock.

Hedge Funds Weigh In On Donegal Group

Several institutional investors have recently made changes to their positions in the company. Mercer Global Advisors Inc. ADV raised its position in shares of Donegal Group by 20.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 12,150 shares of the insurance provider’s stock worth $243,000 after purchasing an additional 2,081 shares during the last quarter. Price T Rowe Associates Inc. MD acquired a new position in shares of Donegal Group during the 4th quarter valued at about $203,000. State of Wisconsin Investment Board increased its position in Donegal Group by 104.5% during the fourth quarter. State of Wisconsin Investment Board now owns 23,021 shares of the insurance provider’s stock worth $460,000 after purchasing an additional 11,765 shares during the last quarter. MML Investors Services LLC raised its stake in Donegal Group by 28.4% during the fourth quarter. MML Investors Services LLC now owns 69,106 shares of the insurance provider’s stock worth $1,381,000 after purchasing an additional 15,289 shares during the period. Finally, Mariner LLC boosted its holdings in Donegal Group by 9.9% in the 4th quarter. Mariner LLC now owns 14,874 shares of the insurance provider’s stock valued at $297,000 after purchasing an additional 1,342 shares during the last quarter. 27.96% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

DGICA has been the subject of a number of recent research reports. Weiss Ratings upgraded shares of Donegal Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Keefe, Bruyette & Woods raised their price target on Donegal Group from $18.00 to $20.00 and gave the company a “market perform” rating in a research report on Wednesday, July 8th. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $20.00.

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.