DGICA Stock Analysis: Buy, Sell, or Hold?
DGICA - Donegal Group Inc
$18.67
0.22 (1.19%)
▲
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 19, 2026
18d
Get Alerted When DGICA Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
💡 BUY OPPORTUNITY: DGICA shows positive signals but monitor for confirmation. Market pricing in 1.6% decline. Moderate conviction.
💡 BUY OPPORTUNITY: DGICA shows positive signals but monitor for confirmation. Market pricing in 1.6% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$16.60
Based on -2.9% avg growth
INTRINSIC VALUE TODAY
$10.31
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 9.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGICA is currently trading at $18.67, which is considered oversold relative to its 30-day fair value range of $18.68 to $20.04. The stock's valuation (Forward PE: 9.5) is in line with its historical norms (9.9). Remarkably, the market is currently pricing in an annual earnings decline of 1.6% over the next few years. This pessimistic expectation contrasts with the company's recent 8.9% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DGICA is showing sideways momentum. Immediate support is located at $18.03, while resistance sits at $19.62.
Market Sentiment: DGICA has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. In the options market, Implied Volatility is low (3th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $21.50 (+16.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DGICA is showing sideways momentum. Immediate support is located at $18.03, while resistance sits at $19.62.
Market Sentiment: DGICA has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. In the options market, Implied Volatility is low (3th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $21.50 (+16.5%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$18.68 -
$20.04
Company Quality Score
55/100
(HOLD)
Options IV Signal
3th percentile
(COMPLACENCY WARNING)
Volume Confirmation
HIGH
Confidence Score
63.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Options cheap (IV 3th percentile)
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($21.50)
Fair Price Analysis
30-Day Fair Range
$18.68 -
$20.04
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$0.80
(4.3%)
Support & Resistance Levels
Support Level
$18.03
Resistance Level
$19.63
Current Trend
Sideways
Fundamental Context
Forward P/E (Next Year Est.)
9.46
Wall Street Target
$21.50
(+16.5%)
Revenue Growth (YoY)
-2.3%
Earnings Growth (YoY)
8.9%
Profit Margin
8.7%
Valuation Discount vs History
-1.6% cheaper
PE vs Historical
9.5 vs 9.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.6%
(market-implied from PE analysis)
1-Year Target
$18.15
(-2%)
2-Year Target
$17.86
(-3%)
3-Year Target
$17.58
(-5%)
3-Yr Target (if PE normalizes)
(PE: 9→10)
$18.39
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: -9.7%)
$31.99
(+73%)
Base:
(SPY PE: 9.5, Growth: -9.7%)
$13.57
(-26%)
Bear:
(PE: 8.0, Growth: -9.7%)
$11.54
(-38%)
📈
Valuation based on Current Earnings
Trailing PE: 7.44 | Current EPS (TTM): $2.44
Bull Case
$15.96
(-15%)
Analyst growth -20.1%, PE expands to 8.2
Base Case
$14.51
(-22%)
Market implied -20.1%, PE stable at 7.4
Bear Case
$12.35
(-34%)
Severe decline -20.0%, PE contracts to 6.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.5 to 9.9
Stabilization Target:
$19.30
(+4.6%)
PE Expansion Potential:
+4.6%
Last updated: January 31, 2026 3:47 AM ET
Data refreshes hourly during market hours. Next update: 4:47 AM
Data refreshes hourly during market hours. Next update: 4:47 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is DGICA showing a specific setup today?
Insider Activity (6 Months)
12
Buys
1
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Mutual Insurance Co Done…
BUY
20000 shares
2025-09-12
Mutual Insurance Co Done…
BUY
16573 shares
2025-09-11
Mutual Insurance Co Done…
BUY
20000 shares
2025-09-10
Top Rated Insurance - Property & Casualty Stocks
Top-rated stocks in Insurance - Property & Casualty by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
ALL
The Allstate Corporation |
STRONG BUY
20 analysts |
$237 | 59 HOLD |
|
TRV
The Travelers Companies … |
HOLD
23 analysts |
$298 | 61 BUY |
|
CB
Chubb Ltd |
HOLD
22 analysts |
$321 | 62 BUY |
|
HIG
Hartford Financial Servi… |
BUY
19 analysts |
$144 | 60 HOLD |
|
PGR
Progressive Corp |
BUY
19 analysts |
$249 | 59 HOLD |
Advanced DGICA Option Strategies
Professional options setups generated by AI based on today's DGICA price and gamma walls.