Donegal Group (NASDAQ:DGICA) Shares Gap Down Following Weak Earnings

Shares of Donegal Group, Inc. (NASDAQ:DGICA) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $18.61, but opened at $17.08. Donegal Group shares last traded at $17.68, with a volume of 21,453 shares trading hands.

The insurance provider reported $0.50 earnings per share for the quarter, missing analysts’ consensus estimates of $0.52 by ($0.02). Donegal Group had a return on equity of 12.99% and a net margin of 8.11%.The firm had revenue of $240.14 million during the quarter, compared to analysts’ expectations of $241.10 million.

Donegal Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Tuesday, February 3rd were issued a dividend of $0.1825 per share. This represents a $0.73 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Tuesday, February 3rd. Donegal Group’s dividend payout ratio is presently 30.17%.

Key Donegal Group News

Here are the key news stories impacting Donegal Group this week:

• Positive Sentiment: Company emphasized record net income for the quarter and outlined strategic initiatives that management says support longer-term profitability, which could be constructive for investor confidence. Donegal Group Inc (DGICA) Q4 2025 Earnings Call Highlights: Record Net Income and Strategic …
• Neutral Sentiment: Full earnings-call transcript is available for investors who want the detailed commentary and management Q&A to assess growth/guidance nuances. Donegal Group Inc. (NASDAQ:DGICA) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Earnings slide presentation is posted (useful for line‑by‑line review of underwriting, investment results and reserve development). Donegal Group Inc. 2025 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Pre‑earnings preview coverage summarizing expectations and key metrics to watch. Donegal Group Inc (DGICA) Q4 2025 Earnings Report Preview: What To Expect
• Neutral Sentiment: Reported short‑interest data appears effectively zero and unchanged, so short covering/pressure is unlikely to explain the move. (Data note in filings/news items.)
• Negative Sentiment: The core driver of the decline: reported EPS of $0.50 missed the $0.52 consensus and revenue slightly trailed estimates — an outcome that prompted selling pressure despite positive commentary on net income. Donegal Group (NASDAQ:DGICA) Shares Gap Down on Disappointing Earnings
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target from $21.00 to $19.50 and assigned a “market perform” rating, which reduces analyst-driven upside and may have intensified the pullback. KBW cuts price target to $19.50, market perform

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on DGICA shares. Zacks Research lowered Donegal Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 19th. Keefe, Bruyette & Woods reduced their price target on shares of Donegal Group from $21.00 to $19.50 and set a “market perform” rating for the company in a research note on Friday. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Donegal Group in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Donegal Group presently has a consensus rating of “Moderate Buy” and an average price target of $19.50.

Insider Activity

In related news, VP Kristi Spencer Altshuler sold 12,000 shares of the stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $20.25, for a total transaction of $243,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Mutual Insurance Co Donegal purchased 28,000 shares of the business’s stock in a transaction on Tuesday, December 9th. The shares were purchased at an average price of $19.81 per share, with a total value of $554,680.00. Following the acquisition, the insider directly owned 13,890,885 shares in the company, valued at $275,178,431.85. This represents a 0.20% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have purchased 106,343 shares of company stock valued at $2,115,435 and have sold 17,174 shares valued at $346,833. Insiders own 6.63% of the company’s stock.

Hedge Funds Weigh In On Donegal Group

Several large investors have recently modified their holdings of the stock. Creative Planning raised its stake in shares of Donegal Group by 22.5% during the second quarter. Creative Planning now owns 151,135 shares of the insurance provider’s stock valued at $3,026,000 after acquiring an additional 27,757 shares in the last quarter. CWM LLC increased its holdings in Donegal Group by 21.9% during the 2nd quarter. CWM LLC now owns 6,293 shares of the insurance provider’s stock worth $126,000 after purchasing an additional 1,130 shares during the period. Acadian Asset Management LLC raised its position in Donegal Group by 13.1% during the 2nd quarter. Acadian Asset Management LLC now owns 179,552 shares of the insurance provider’s stock valued at $3,591,000 after purchasing an additional 20,729 shares in the last quarter. Campbell & CO Investment Adviser LLC bought a new stake in Donegal Group during the 2nd quarter valued at $939,000. Finally, Pinnacle Associates Ltd. lifted its holdings in shares of Donegal Group by 49.6% in the 2nd quarter. Pinnacle Associates Ltd. now owns 54,446 shares of the insurance provider’s stock worth $1,090,000 after buying an additional 18,050 shares during the period. Institutional investors own 27.96% of the company’s stock.

Donegal Group Stock Down 1.0%

The company has a current ratio of 0.39, a quick ratio of 0.39 and a debt-to-equity ratio of 0.06. The business has a 50-day moving average price of $19.32 and a 200-day moving average price of $19.10. The firm has a market cap of $637.17 million, a P/E ratio of 7.94 and a beta of 0.04.

About Donegal Group

Donegal Group, Inc (NASDAQ: DGICA) is a property and casualty insurance holding company headquartered in Marietta, Pennsylvania. Through a network of independent agencies, the company offers a suite of personal and commercial insurance products. Its underwriting subsidiaries provide homeowners, automobile, farmowner, commercial multi-peril, surety and umbrella coverages designed to meet the needs of individuals, families and businesses.

The company’s origins date back to 1925 with the formation of Donegal Mutual Insurance Company to serve rural communities in Pennsylvania.