Donegal Group (NASDAQ:DGICA) Sets New 1-Year High - Still a Buy?

Shares of Donegal Group Inc. (NASDAQ:DGICA - Get Free Report) hit a new 52-week high on Wednesday . The stock traded as high as $17.50 and last traded at $16.51, with a volume of 273 shares traded. The stock had previously closed at $16.62.

Donegal Group Stock Up 0.9 %

The firm has a market capitalization of $592.84 million, a PE ratio of 11.51 and a beta of -0.02. The company has a fifty day simple moving average of $15.17 and a two-hundred day simple moving average of $15.28. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.38 and a current ratio of 0.38.

Donegal Group (NASDAQ:DGICA - Get Free Report) last issued its earnings results on Thursday, February 20th. The insurance provider reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.39. Donegal Group had a return on equity of 9.50% and a net margin of 5.14%. The business had revenue of $249.70 million during the quarter, compared to analysts' expectations of $250.61 million. Analysts forecast that Donegal Group Inc. will post 1.2 EPS for the current fiscal year.

Donegal Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, February 18th. Shareholders of record on Tuesday, February 4th were issued a $0.1725 dividend. This represents a $0.69 annualized dividend and a dividend yield of 3.95%. This is a boost from Donegal Group's previous quarterly dividend of $0.17. The ex-dividend date of this dividend was Tuesday, February 4th. Donegal Group's dividend payout ratio is currently 45.39%.

Insiders Place Their Bets

In related news, major shareholder Mutual Insurance Co Donegal acquired 8,354 shares of the firm's stock in a transaction that occurred on Monday, December 2nd. The stock was purchased at an average cost of $16.73 per share, for a total transaction of $139,762.42. Following the purchase, the insider now directly owns 12,746,604 shares of the company's stock, valued at $213,250,684.92. 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. Also, Director Barry C. Huber sold 2,500 shares of the company's stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $16.60, for a total value of $41,500.00. Following the sale, the director now owns 14,867 shares of the company's stock, valued at $246,792.20. This trade represents a 14.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders bought 386,422 shares of company stock worth $6,426,269 and sold 265,542 shares worth $4,409,132. Company insiders own 6.63% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in DGICA. Public Employees Retirement System of Ohio raised its stake in shares of Donegal Group by 167.0% in the fourth quarter. Public Employees Retirement System of Ohio now owns 12,905 shares of the insurance provider's stock worth $200,000 after purchasing an additional 8,071 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Donegal Group by 9.0% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 66,254 shares of the insurance provider's stock worth $1,025,000 after purchasing an additional 5,487 shares during the last quarter. Squarepoint Ops LLC raised its stake in shares of Donegal Group by 15.4% in the fourth quarter. Squarepoint Ops LLC now owns 41,810 shares of the insurance provider's stock worth $647,000 after purchasing an additional 5,568 shares during the last quarter. Two Sigma Advisers LP raised its stake in shares of Donegal Group by 7.4% in the fourth quarter. Two Sigma Advisers LP now owns 49,200 shares of the insurance provider's stock worth $761,000 after purchasing an additional 3,400 shares during the last quarter. Finally, Two Sigma Investments LP raised its stake in shares of Donegal Group by 87.6% in the fourth quarter. Two Sigma Investments LP now owns 89,437 shares of the insurance provider's stock worth $1,384,000 after purchasing an additional 41,763 shares during the last quarter. 27.96% of the stock is owned by institutional investors and hedge funds.

About Donegal Group

Donegal Group Inc, an insurance holding company, provides property and casualty insurance to businesses and individuals. It operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles; and homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft, as well as liability of the insured arising from injury to other persons or their property.