Selective Insurance Group (NASDAQ:SIGI) Shares Gap Down on Disappointing Earnings

Selective Insurance Group, Inc. (NASDAQ:SIGI) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $94.02, but opened at $88.56. Selective Insurance Group shares last traded at $85.47, with a volume of 158,314 shares changing hands.

The insurance provider reported $1.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.99 by ($0.37). Selective Insurance Group had a net margin of 5.01% and a return on equity of 8.11%.

Analyst Ratings Changes

A number of research firms have recently weighed in on SIGI. Royal Bank of Canada boosted their price objective on shares of Selective Insurance Group from $96.00 to $99.00 and gave the company a “sector perform” rating in a research report on Wednesday, October 23rd. Morgan Stanley began coverage on shares of Selective Insurance Group in a research note on Thursday, December 5th. They set an “equal weight” rating and a $105.00 price objective on the stock. Bank of America increased their price target on shares of Selective Insurance Group from $96.00 to $102.00 and gave the stock an “underperform” rating in a research note on Tuesday, October 22nd. BMO Capital Markets raised shares of Selective Insurance Group from a “market perform” rating to an “outperform” rating and raised their target price for the company from $95.00 to $105.00 in a research note on Wednesday, October 30th. Finally, JMP Securities reissued a “market perform” rating on shares of Selective Insurance Group in a research note on Thursday. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $104.57.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. R Squared Ltd acquired a new position in Selective Insurance Group during the 4th quarter worth $25,000. V Square Quantitative Management LLC acquired a new position in Selective Insurance Group during the 3rd quarter worth $27,000. UMB Bank n.a. grew its holdings in Selective Insurance Group by 37.1% during the 4th quarter. UMB Bank n.a. now owns 429 shares of the insurance provider’s stock worth $40,000 after acquiring an additional 116 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its holdings in Selective Insurance Group by 957.1% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 444 shares of the insurance provider’s stock worth $42,000 after acquiring an additional 402 shares in the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new position in Selective Insurance Group during the 2nd quarter worth $44,000. 82.88% of the stock is owned by institutional investors and hedge funds.

Selective Insurance Group Stock Performance

The company has a market capitalization of $4.99 billion, a price-to-earnings ratio of 22.14 and a beta of 0.62. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.35 and a current ratio of 0.35. The company’s fifty day simple moving average is $94.92 and its two-hundred day simple moving average is $92.98.

About Selective Insurance Group

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.