Donegal Group (NASDAQ:DGICA) Shares Break Above 200-Day Moving Average – Should You Sell?

Donegal Group, Inc. (NASDAQ:DGICA) shares crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $18.12 and traded as high as $18.59. Donegal Group shares last traded at $18.23, with a volume of 89,166 shares.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Weiss Ratings upgraded Donegal Group from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, August 28th. Zacks Research lowered shares of Donegal Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, September 17th. Finally, Keefe, Bruyette & Woods upped their price objective on Donegal Group from $18.00 to $20.00 and gave the stock a “market perform” rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $20.00.

Donegal Group Trading Down 1.7%

The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.05. The business has a 50 day simple moving average of $18.81 and a two-hundred day simple moving average of $18.12. The stock has a market cap of $676.70 million, a price-to-earnings ratio of 9.45 and a beta of -0.03.

Donegal Group (NASDAQ:DGICA) last issued its quarterly earnings results on Thursday, July 30th. The insurance provider reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.11. Donegal Group had a net margin of 7.38% and a return on equity of 10.65%. The business had revenue of $241.12 million during the quarter, compared to analyst estimates of $231.53 million. As a group, equities analysts anticipate that Donegal Group, Inc. will post 1.75 EPS for the current year.

Donegal Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Friday, July 31st were paid a $0.1925 dividend. This represents a $0.77 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date was Friday, July 31st. Donegal Group’s payout ratio is presently 39.90%.

Insider Activity at Donegal Group

In other Donegal Group news, insider Kevin Burke sold 24,000 shares of the company’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $19.23, for a total value of $461,520.00. Following the completion of the transaction, the insider owned 13,870 shares in the company, valued at approximately $266,720.10. This represents a 63.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Jeffrey Miller sold 21,000 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $19.23, for a total value of $403,830.00. Following the completion of the sale, the chief financial officer owned 27,176 shares in the company, valued at approximately $522,594.48. This represents a 43.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders purchased 220,437 shares of company stock valued at $4,218,669 and sold 111,108 shares valued at $2,153,119. 2.75% of the stock is owned by company insiders.

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 company. IFP Advisors Inc grew its position in Donegal Group by 27.8% during the second quarter. IFP Advisors Inc now owns 9,214 shares of the insurance provider’s stock worth $174,000 after buying an additional 2,004 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Donegal Group by 3.1% in the first quarter. Bank of America Corp DE now owns 73,820 shares of the insurance provider’s stock worth $1,268,000 after acquiring an additional 2,243 shares during the last quarter. Pinnacle Wealth Management Advisory Group LLC boosted its position in Donegal Group by 14.7% in the 1st quarter. Pinnacle Wealth Management Advisory Group LLC now owns 23,406 shares of the insurance provider’s stock valued at $402,000 after buying an additional 3,006 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Donegal Group by 0.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,737,266 shares of the insurance provider’s stock worth $29,846,000 after purchasing an additional 7,345 shares during the period. Finally, Hsbc Holdings PLC lifted its holdings in Donegal Group by 26.3% in the fourth quarter. Hsbc Holdings PLC now owns 35,570 shares of the insurance provider’s stock valued at $710,000 after buying an additional 7,409 shares during the period. 27.96% of the stock is owned by institutional investors.

About Donegal Group

Donegal Group Inc is an insurance holding company that provides property and casualty insurance products to individuals and businesses in the United States. The company operates primarily through its insurance subsidiaries and markets its policies through a network of independent insurance agents.

Its personal insurance offerings include automobile, homeowners, renters, and other residential coverage. Donegal Group also provides commercial products such as commercial automobile, workers’ compensation, businessowners, commercial package, and other property and liability insurance policies.