Donegal Group Inc. (NASDAQ:DGICA) Sees Large Drop in Short Interest


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Donegal Group Inc. (NASDAQ:DGICA) was the target of a large decline in short interest in the month of April. As of April 15th, there was short interest totalling 79,800 shares, a decline of 16.0% from the March 31st total of 95,000 shares. Based on an average daily volume of 81,500 shares, the days-to-cover ratio is presently 1.0 days. Approximately 0.7% of the company’s stock are sold short.

Shares of NASDAQ DGICA traded down $0.13 during trading hours on Tuesday, hitting $15.22. The company had a trading volume of 91,589 shares, compared to its average volume of 77,574. The stock has a market capitalization of $460.80 million and a P/E ratio of 8.39. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 0.18. Donegal Group has a 1-year low of $12.38 and a 1-year high of $16.48. The firm’s 50 day moving average is $15.38 and its 200-day moving average is $14.54.

Donegal Group (NASDAQ:DGICA) last released its quarterly earnings data on Sunday, April 25th. The insurance provider reported $0.29 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.06). Donegal Group had a net margin of 6.71% and a return on equity of 10.77%. On average, sell-side analysts predict that Donegal Group will post 1.75 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, May 17th. Stockholders of record on Monday, May 3rd will be issued a $0.16 dividend. This represents a $0.64 annualized dividend and a dividend yield of 4.20%. The ex-dividend date of this dividend is Friday, April 30th. This is an increase from Donegal Group’s previous quarterly dividend of $0.15. Donegal Group’s dividend payout ratio is presently 63.37%.

In other news, major shareholder Mutual Insurance Co Donegal purchased 75,000 shares of Donegal Group stock in a transaction on Thursday, March 11th. The stock was purchased at an average price of $14.85 per share, with a total value of $1,113,750.00. Following the transaction, the insider now directly owns 10,342,692 shares in the company, valued at approximately $153,588,976.20. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Richard D. Wampler II sold 12,000 shares of the company’s stock in a transaction that occurred on Thursday, April 29th. The stock was sold at an average price of $15.51, for a total value of $186,120.00. Following the transaction, the director now directly owns 20,602 shares of the company’s stock, valued at approximately $319,537.02. The disclosure for this sale can be found here. 9.30% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. CWA Asset Management Group LLC raised its stake in Donegal Group by 0.8% in the 4th quarter. CWA Asset Management Group LLC now owns 365,736 shares of the insurance provider’s stock valued at $5,146,000 after acquiring an additional 3,048 shares during the period. Northern Trust Corp raised its stake in Donegal Group by 1.1% in the 4th quarter. Northern Trust Corp now owns 241,691 shares of the insurance provider’s stock valued at $3,400,000 after acquiring an additional 2,607 shares during the period. Bank of New York Mellon Corp increased its position in Donegal Group by 56.6% during the 4th quarter. Bank of New York Mellon Corp now owns 181,634 shares of the insurance provider’s stock worth $2,556,000 after buying an additional 65,649 shares during the period. Federated Hermes Inc. increased its position in Donegal Group by 6.0% during the 4th quarter. Federated Hermes Inc. now owns 105,194 shares of the insurance provider’s stock worth $1,480,000 after buying an additional 5,958 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its position in Donegal Group by 10.2% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 87,521 shares of the insurance provider’s stock worth $1,232,000 after buying an additional 8,132 shares during the period. Institutional investors and hedge funds own 32.93% of the company’s stock.

Separately, Zacks Investment Research raised Donegal Group from a “hold” rating to a “strong-buy” rating and set a $18.00 price target for the company in a research report on Thursday, April 15th.

Donegal Group Company Profile

Donegal Group Inc, an insurance holding company, provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance.

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