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

Selective Insurance Group, Inc. (NASDAQ:SIGI)’s share price dropped 4.6% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $91.86 and last traded at $92.49. Approximately 315,265 shares were traded during mid-day 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 (EPS) for the quarter, missing analysts’ consensus estimates of $1.69 by ($0.29). The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.17 billion. Selective Insurance Group had a net margin of 5.12% and a return on equity of 8.75%. The firm’s revenue for the quarter was up 15.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.51 EPS.

Selective Insurance Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 2nd. Shareholders of record on Friday, November 15th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Friday, November 15th. This represents a $1.52 dividend on an annualized basis and a yield of 1.59%. This is a positive change from Selective Insurance Group’s previous quarterly dividend of $0.35. Selective Insurance Group’s payout ratio is presently 38.25%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Bank of America lifted their price target on shares of Selective Insurance Group from $96.00 to $102.00 and gave the company an “underperform” rating in a research note on Tuesday. Royal Bank of Canada lifted their price target on shares of Selective Insurance Group from $96.00 to $99.00 and gave the company a “sector perform” rating in a research note on Wednesday. BMO Capital Markets boosted their price objective on shares of Selective Insurance Group from $92.00 to $95.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 24th. Piper Sandler cut their price objective on shares of Selective Insurance Group from $104.00 to $85.00 and set a “neutral” rating on the stock in a research report on Monday, July 22nd. Finally, Keefe, Bruyette & Woods raised shares of Selective Insurance Group from a “market perform” rating to an “outperform” rating and cut their price objective for the stock from $104.00 to $99.00 in a research report on Monday, July 22nd. One research analyst has rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $100.00.

Institutional Trading of Selective Insurance Group

A number of large investors have recently added to or reduced their stakes in SIGI. Ballentine Partners LLC acquired a new stake in Selective Insurance Group in the first quarter valued at $204,000. Procyon Advisors LLC lifted its stake in Selective Insurance Group by 16.7% in the first quarter. Procyon Advisors LLC now owns 12,875 shares of the insurance provider’s stock valued at $1,406,000 after acquiring an additional 1,839 shares during the last quarter. Ausbil Investment Management Ltd lifted its stake in Selective Insurance Group by 14.6% in the first quarter. Ausbil Investment Management Ltd now owns 21,097 shares of the insurance provider’s stock valued at $2,255,000 after acquiring an additional 2,693 shares during the last quarter. AlphaMark Advisors LLC acquired a new stake in Selective Insurance Group in the first quarter valued at $334,000. Finally, Vaughan Nelson Investment Management L.P. lifted its stake in Selective Insurance Group by 27.5% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 578,501 shares of the insurance provider’s stock valued at $63,155,000 after acquiring an additional 124,860 shares during the last quarter. Institutional investors and hedge funds own 82.88% of the company’s stock.

Selective Insurance Group Price Performance

The company has a market capitalization of $5.80 billion, a P/E ratio of 26.04, a price-to-earnings-growth ratio of 1.62 and a beta of 0.56. The company’s 50-day moving average price is $91.71 and its two-hundred day moving average price is $93.69. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.32 and a quick ratio of 0.32.

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.