Donegal Group (NASDAQ:DGICA) Shares Down 6.6% on Disappointing Earnings

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

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

Donegal Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Investors of record on Tuesday, February 3rd were paid a $0.1825 dividend. This represents a $0.73 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Tuesday, February 3rd. Donegal Group’s dividend payout ratio is presently 30.17%.

Analyst Ratings Changes

A number of analysts have recently commented on DGICA shares. Weiss Ratings restated a “buy (b)” rating on shares of Donegal Group in a report on Wednesday, January 21st. Zacks Research lowered shares of Donegal Group from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 19th. Finally, Keefe, Bruyette & Woods lowered their price objective on Donegal Group from $21.00 to $19.50 and set a “market perform” rating for the company in a research note on Friday. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Donegal Group currently has an average rating of “Moderate Buy” and a consensus target price of $19.50.

Insider Activity at Donegal Group

In other news, major shareholder Mutual Insurance Co Donegal purchased 28,000 shares of the stock in a transaction dated Tuesday, December 9th. The shares were purchased at an average cost of $19.81 per share, with a total value of $554,680.00. Following the acquisition, the insider directly owned 13,890,885 shares of the company’s stock, valued at $275,178,431.85. This represents a 0.20% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Kevin Michael Sr Kraft, Sr. sold 4,500 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $20.02, for a total value of $90,090.00. Following the completion of the transaction, the director owned 13,436 shares in the company, valued at approximately $268,988.72. This trade represents a 25.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have purchased 106,343 shares of company stock worth $2,115,435 and have sold 17,174 shares worth $346,833. 6.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. State of Alaska Department of Revenue bought a new stake in shares of Donegal Group during the 3rd quarter valued at about $26,000. Smartleaf Asset Management LLC lifted its stake in shares of Donegal Group by 576.6% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,747 shares of the insurance provider’s stock worth $55,000 after purchasing an additional 2,341 shares during the period. Versant Capital Management Inc boosted its holdings in shares of 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 buying an additional 1,329 shares during the last quarter. Allworth Financial LP boosted its holdings in shares of Donegal Group by 477.2% in the second quarter. Allworth Financial LP now owns 2,961 shares of the insurance provider’s stock worth $59,000 after buying an additional 2,448 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew 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 buying an additional 2,975 shares during the period. Institutional investors own 27.96% of the company’s stock.

Donegal Group Trading Down 1.3%

The company has a quick ratio of 0.39, a current ratio of 0.39 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $634.97 million, a PE ratio of 7.15 and a beta of 0.04. The stock’s fifty day simple moving average is $19.38 and its 200 day simple moving average is $19.09.

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.