Shares of Donegal Group Inc. (NASDAQ:DGICA) experienced a shift in investor sentiment following recent reports from financial analysts. On Saturday, Wall Street Zen downgraded the company’s stock from a buy rating to a hold rating, indicating a more cautious outlook on the insurance provider’s performance.
In contrast, Keefe, Bruyette & Woods raised its price target for Donegal Group from $17.00 to $18.00 in a report issued on April 25, 2024. The firm assigned the company a “market perform” rating, suggesting that it expects Donegal Group to perform in line with the broader market.
Quarterly Earnings Performance
Donegal Group released its quarterly earnings report on July 24, 2024. The company reported earnings per share (EPS) of $0.43, surpassing analysts’ expectations of $0.36 by $0.07. However, the reported revenue of $233.81 million fell short of the consensus estimate of $247.21 million. Despite this, the company achieved a return on equity of 14.33% and maintained a net margin of 8.33%. Analysts predict that Donegal Group will post an EPS of 1.20 for the current year.
In addition, Donegal Group announced a quarterly dividend of $0.1825 per share, scheduled for payment on August 15, 2024. Shareholders on record as of August 1, 2024, are eligible for this dividend, which equates to an annualized yield of 4.3%. The company’s payout ratio stands at 30.67%.
Insider Transactions and Institutional Activity
Recent insider trading activity at Donegal Group indicates significant stock movement. On May 19, 2024, Vice President William Albert Folmar sold 18,000 shares at an average price of $20.67, totaling $372,060. This sale represented a substantial 94.99% decrease in his ownership stake, leaving him with 950 shares valued at approximately $19,636.50.
Additionally, Vice President Sanjay Pandey sold 12,982 shares on May 15, 2024, at an average price of $20.27, amounting to $263,145.14. Following this transaction, Pandey holds 7,449 shares valued at around $150,991.23, reflecting a 63.54% decrease in his position.
In total, insiders have sold 63,429 shares valued at $1,286,216 over the past three months, with insiders currently owning 3.48% of the company’s stock.
Several institutional investors have also adjusted their holdings in Donegal Group recently. ProShare Advisors LLC acquired a new position worth approximately $6,343,000 in the second quarter of 2024, while CSM Advisors LLC added shares valued at around $3,699,000. Renaissance Technologies LLC increased its stake by 29.5%, now owning 429,106 shares worth $6,638,000 after purchasing an additional 97,795 shares.
The Teacher Retirement System of Texas also raised its holdings by 78.7%, now owning 191,376 shares valued at $3,832,000. Overall, institutional investors and hedge funds hold 27.96% of Donegal Group’s shares.
Donegal Group Inc. operates as an insurance holding company, providing property and casualty insurance to both businesses and individuals. The company’s offerings include private passenger automobile policies and homeowners policies, covering a variety of risks.
As analysts and investors continue to assess Donegal Group’s performance, the recent adjustments in ratings and insider transactions reflect a complex landscape for the insurance provider in the current market environment.
