Selective Insurance Group (NASDAQ:SIGI) Trading Down 4.6% After Earnings Miss

Selective Insurance Group, Inc. (NASDAQ:SIGI) dropped 4.6% on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $91.86 and last traded at $92.49. Approximately 315,265 shares were traded during trading, a decline of 9% from the average daily volume of 346,964 shares. The stock had previously closed at $96.97.

The insurance provider reported $1.40 earnings per share for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.29). Selective Insurance Group had a net margin of 5.12% and a return on equity of 8.75%. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the previous year, the business posted $1.51 EPS. Selective Insurance Group’s revenue was up 15.1% compared to the same quarter last year.

Selective Insurance Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 2nd. Investors of record on Friday, November 15th will be issued a $0.38 dividend. This represents a $1.52 dividend on an annualized basis and a yield of 1.63%. This is a boost from Selective Insurance Group’s previous quarterly dividend of $0.35. Selective Insurance Group’s dividend payout ratio (DPR) is presently 38.25%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on SIGI shares. Keefe, Bruyette & Woods upgraded Selective Insurance Group from a “market perform” rating to an “outperform” rating and reduced their price objective for the stock from $104.00 to $99.00 in a research note on Monday, July 22nd. BMO Capital Markets boosted their price objective on Selective Insurance Group from $92.00 to $95.00 and gave the stock a “market perform” rating in a research note on Wednesday, July 24th. Bank of America boosted their price objective on Selective Insurance Group from $96.00 to $102.00 and gave the stock an “underperform” rating in a research note on Tuesday. Piper Sandler reduced their price objective on Selective Insurance Group from $104.00 to $85.00 and set a “neutral” rating on the stock in a research note on Monday, July 22nd. Finally, Royal Bank of Canada reduced their price objective on Selective Insurance Group from $103.00 to $96.00 and set a “sector perform” rating on the stock in a research note on Monday, July 22nd. One analyst has rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $99.50.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. V Square Quantitative Management LLC acquired a new position in shares of Selective Insurance Group in the third quarter worth about $27,000. Quest Partners LLC acquired a new position in shares of Selective Insurance Group in the second quarter worth about $28,000. GAMMA Investing LLC lifted its stake in shares of Selective Insurance Group by 81.5% in the second quarter. GAMMA Investing LLC now owns 323 shares of the insurance provider’s stock worth $30,000 after acquiring an additional 145 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of Selective Insurance Group in the second quarter worth about $44,000. Finally, Fidelis Capital Partners LLC bought a new stake in Selective Insurance Group in the first quarter valued at about $48,000. Institutional investors and hedge funds own 82.88% of the company’s stock.

Selective Insurance Group Stock Performance

The company has a debt-to-equity ratio of 0.19, a current ratio of 0.32 and a quick ratio of 0.32. The stock has a market capitalization of $5.68 billion, a P/E ratio of 25.50, a price-to-earnings-growth ratio of 1.62 and a beta of 0.56. The company has a fifty day moving average of $91.53 and a two-hundred day moving average of $93.67.

Selective Insurance Group Company Profile

Selective Insurance Group, Inc, together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products.