Donegal Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>DGI</div>
DGICA -- USA Stock  

USD 13.78  0.05  0.36%

Donegal Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 64.23 Million. The current year Earnings before Tax is expected to grow to about 61.6 M, whereas Average Assets are forecasted to decline to about 1.8 B. The primary aim of this article is to break down Donegal potential for August. We are going to analyze if Donegal is reasonably priced going into August.
Published over two months ago
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What are the projections for Donegal (NASDAQ:DGICA) to recover in August 2020?
Over 82.0% of Donegal shares are held by institutions such as insurance companies. Institutional ownership of Donegal Group refers to the amount of Donegal Group equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Donegal, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Donegal Group. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Donegal

How important is Donegal's Liquidity

Donegal financial leverage refers to using borrowed capital as a funding source to finance Donegal Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Donegal financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Donegal's total debt and its cash.

How Donegal utilizes its cash?

To perform a cash flow analysis of Donegal, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Donegal is receiving and how much cash it distributes out in a given period. The Donegal cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Donegal Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 76.36 Million

Exercise or conversion by Barry Huber of 200 shares of Donegal subject to Rule 16b-3

Legal trades by Donegal insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Donegal insider trading alert for exercise of options by Barry Huber, the corporate stakeholder, on 16th of September 2020. This event was filed by Donegal Group Inc with SEC on 2020-09-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Donegal Investor Appetite?

Donegal Group price decrease over the last few months could raise concerns from investors as the firm closed today at a share price of 13.59 on very low momentum in volume. The company management teams were not very successful in positioning the firm resources to exploit market volatility in June. However, diversifying your holdings with Donegal Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.52. The current volatility is consistent with the ongoing market swings in June 2020 as well as with Donegal unsystematic, company-specific events.

Margin Breakdown

Profit Margin
EBITDA Margin0.0853
Gross Margin0.33
Profit Margin0.0626

Our Donegal analysis suggests possible reversion in August

The market risk adjusted performance is down to -0.11 as of today. Donegal Group exhibits very low volatility with skewness of -0.7 and kurtosis of 1.49. However, we advise investors to further study Donegal Group technical indicators to make sure all market info is available and is reliable.

Our Final Take On Donegal

Whereas some other firms in the insurance?property & casualty industry are either recovering or due for a correction, Donegal may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor short any shares of Donegal at this time. The Donegal Group risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Donegal.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Donegal Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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