Direct Line Insurance Group (LON:DLG) Shares Up 38.5% – Should You Buy?

Direct Line Insurance Group plc (LON:DLG) shot up 38.5% during trading on Thursday . The stock traded as high as GBX 220.60 ($2.81) and last traded at GBX 219.76 ($2.80). 426,037,250 shares traded hands during trading, an increase of 6,189% from the average session volume of 6,774,301 shares. The stock had previously closed at GBX 158.70 ($2.02).

Analyst Upgrades and Downgrades

Separately, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a GBX 240 ($3.06) price objective on shares of Direct Line Insurance Group in a report on Thursday, September 5th.

Direct Line Insurance Group Stock Up 4.6 %

The stock has a 50-day moving average of GBX 173.51 and a two-hundred day moving average of GBX 186.22. The company has a market cap of £3.05 billion, a P/E ratio of 1,020.87, a P/E/G ratio of 2.42 and a beta of 0.42. The company has a debt-to-equity ratio of 20.04, a quick ratio of 0.28 and a current ratio of 0.57.

Direct Line Insurance Group Cuts Dividend

The company also recently announced a dividend, which was paid on Friday, October 11th. Investors of record on Thursday, September 12th were given a GBX 2 ($0.03) dividend. The ex-dividend date was Thursday, September 12th. This represents a yield of 1.04%. Direct Line Insurance Group’s payout ratio is 2,608.70%.

Insider Buying and Selling

In related news, insider Carol Hagh acquired 10,000 shares of the stock in a transaction on Wednesday, September 4th. The stock was purchased at an average price of GBX 195 ($2.48) per share, for a total transaction of £19,500 ($24,837.60). Insiders bought 10,264 shares of company stock worth $1,995,053 in the last quarter. 0.85% of the stock is owned by insiders.

About Direct Line Insurance Group

Direct Line Insurance Group plc engages in the provision of general insurance products and services in the United Kingdom. The company operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. It offers motor, home, van, landlord, rescue, pet, tradesperson, business, creditor and select, and travel insurance products, as well as commercial insurance for small and medium-sized enterprises.