Direct Line Insurance Group (LON:DLG) Shares Up 38.5% - Still a Buy?

Direct Line Insurance Group plc (LON:DLG - Get Free Report) rose 38.5% on Thursday . The company traded as high as GBX 220.60 ($2.80) and last traded at GBX 219.76 ($2.79). Approximately 426,037,250 shares changed hands during mid-day trading, an increase of 6,189% from the average daily volume of 6,774,301 shares. The stock had previously closed at GBX 158.70 ($2.01).

Wall Street Analysts Forecast Growth

Separately, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a GBX 240 ($3.04) price objective on shares of Direct Line Insurance Group in a research report on Thursday, September 5th.

Direct Line Insurance Group Trading Up 41.4 %

The company has a debt-to-equity ratio of 20.04, a quick ratio of 0.28 and a current ratio of 0.57. The firm has a market capitalization of £2.92 billion, a P/E ratio of 996.09, a price-to-earnings-growth ratio of 2.42 and a beta of 0.42. The firm has a 50 day moving average price of GBX 171.38 and a two-hundred day moving average price of GBX 185.63.

Direct Line Insurance Group Cuts Dividend

The business also recently declared a dividend, which was paid on Friday, October 11th. Stockholders of record on Thursday, September 12th were given a GBX 2 ($0.03) dividend. This represents a dividend yield of 1.04%. The ex-dividend date of this dividend was Thursday, September 12th. Direct Line Insurance Group's dividend payout ratio (DPR) is 2,608.70%.

Insider Activity at Direct Line Insurance Group

In other news, insider Carol Hagh purchased 10,000 shares of the business's stock in a transaction dated Wednesday, September 4th. The stock was bought at an average cost of GBX 195 ($2.47) per share, with a total value of £19,500 ($24,721.10). Over the last three months, insiders have purchased 10,264 shares of company stock valued at $1,995,053. Corporate insiders own 0.85% of the company's stock.

Direct Line Insurance Group Company Profile

Direct Line Insurance Group plc engages in the provision of general insurance products and services in the United Kingdom. The company operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. It offers motor, home, van, landlord, rescue, pet, tradesperson, business, creditor and select, and travel insurance products, as well as commercial insurance for small and medium-sized enterprises.