Boenning & Scattergood analyst Robert Farnam maintained a Hold rating on Donegal Group (DGICA) today. The company’s shares opened today at $13.20, close to its 52-week low of $12.74.
Farnam commented:
“We are lowering our 4Q18 and FY18 operating EPS estimates based on the commentary. DGICA shares are trading at a P/B discount relative to peers (0.9x versus 1.6x). However, Donegal’s returns have been below average. Management continues to make progress on key initiatives to improve underwriting performance, including re-underwriting the commercial auto book and raising rates in all the company’s markets. However, we’d like to see positive earnings momentum before recommending the shares. We maintain our Neutral rating.”
According to TipRanks.com, Farnam is a 1-star analyst with an average return of -6.2% and a 26.3% success rate. Farnam covers the Financial sector, focusing on stocks such as 1347 Property Insurance Holdings Inc, Hallmark Financial Services, and Selective Insurance Group.
The the analyst consensus on Donegal Group is currently a Hold rating.
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Based on Donegal Group’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $1.21 million. In comparison, last year the company had a GAAP net loss of $2.78 million.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DGICA in relation to earlier this year.
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Donegal Group, Inc. is an insurance holding company, which engages in the provision of insurance and reinsurance services. It operates through the following segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance and Investment in Donegal Financial Services Corporation (DFSC).
