- Donegal Group (DGICA, Financial) surpassed EPS expectations with first-quarter results.
- Despite a revenue miss, the company saw an improvement in its combined ratio.
- Analysts provide "Hold" ratings with moderate downside predictions.
Donegal Group Inc. (DGICA) has recently announced its first-quarter earnings, delivering a GAAP EPS of $0.71, which has surpassed projections by an impressive $0.37. The company's revenue climbed to $245.17 million, marking a 1.7% increase compared to the same period last year. However, this figure fell short of analyst estimates by $4.19 million. Notably, net premiums earned rose by 2.2% to reach $232.7 million, and the combined ratio saw a significant enhancement, decreasing to 91.6% from the previous year's 102.4%.
Wall Street Analysts' Outlook
Wall Street analysts have provided a one-year price target for Donegal Group Inc. (DGICA, Financial), with an average target price of $18.50. The forecasts range from a high of $20.00 to a low of $17.00, suggesting a potential downside of 0.22% from the current trading price of $18.54. Investors can explore more detailed data on the Donegal Group Inc (DGICA) Forecast page.
Brokerage Recommendations and GF Value Estimation
The consensus recommendation from three brokerage firms positions Donegal Group Inc. (DGICA, Financial) with an average brokerage recommendation of 3.0, translating to a "Hold" status. This rating operates on a scale where 1 indicates a Strong Buy and 5 represents a Sell.
Turning to GuruFocus metrics, the estimated GF Value for Donegal Group Inc. (DGICA, Financial) over the next year is calculated at $15.74. This estimation implies a potential downside of 15.1% from the current market price of $18.54. The GF Value metric is GuruFocus's assessment of what the stock's fair trading value should be, based on historical trading multiples, past business growth, and projections of future business performance. For further insights, investors can visit the Donegal Group Inc (DGICA) Summary page.
