Compass Point Initiates Coverage on Safety Insurance Group (SAFT)
Analysts at Compass Point assumed coverage on shares of Safety Insurance Group (NASDAQ:SAFT) in a research report issued to clients and investors on Thursday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $63.00 price target on the stock. Compass Point’s price target would suggest a potential upside of 13.25% from the stock’s previous close.
The analysts wrote, “Safety Insurance is primarily a mono-state writer of personal lines in Massachusetts. Their low use of leverage (underwriting and debt) coupled with a strong reserve history makes the company appear inexpensive. They have taken a conservative approach to growing their business, which some may call boring, but produces a stable platform on which to pay an industry leading dividend yield to investors and is likely the reason for the high insider ownership of 16.7%. “We do not expect the company to leverage its operations higher, and thus ROATE expectations will likely remain below the peer group. However, their focus on serving the independent agents in their state should continue to build loyalty and attract and retain profitable business. The company does not employ a direct to consumer channel, which would be unconscionable if the company was looking for growth. But they are focused on writing profitable business, not growing the top line for the sake of growth. Now that Massachusetts is six years removed from deregulation, the demise of the independent agent distribution platform is likely overstated as well known direct writers are now putting up storefronts. We rate SAFT a Buy with a $63 price target.”
Shares of Safety Insurance Group (NASDAQ:SAFT) traded down 0.90% on Thursday, hitting $55.13. 8,444 shares of the company’s stock traded hands. Safety Insurance Group has a 1-year low of $48.43 and a 1-year high of $57.63. The stock’s 50-day moving average is $52.31 and its 200-day moving average is $53.03. The company has a market cap of $827.3 million and a P/E ratio of 13.63.
The company also recently declared a quarterly dividend, which is scheduled for Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 5.03%. The ex-dividend date of this dividend is Thursday, August 28th. This is an increase from Safety Insurance Group’s previous quarterly dividend of $0.60.
Separately, analysts at Keefe, Bruyette & Woods initiated coverage on shares of Safety Insurance Group in a research note on Wednesday, August 13th. They set a “market perform” rating and a $58.00 price target on the stock.
Safety Insurance Group, Inc is a provider of personal lines property and casualty insurance focused primarily on the Massachusetts market.
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