DGICA Stock Analysis: Buy, Sell, or Hold?
DGICA - Donegal Group Inc
$17.08
-0.10 (-0.58%)
▼
5d:
-0.76%
30d:
-1.16%
90d:
-8.66%
BUY
HIGH Confidence
Analysis Updated: May 15, 2026 12:00 AM ET
Earnings: Apr 30, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: DGICA shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
✅ BUY SIGNAL: DGICA shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$24.07
Based on 7.2% avg growth
INTRINSIC VALUE TODAY
$14.95
Trading above historical range
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 9.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGICA is currently trading at $17.08, which is considered fair relative to its 30-day fair value range of $16.82 to $17.66. The stock's valuation (Forward PE: 9.1) is in line with its historical norms (9.1). At these levels, the market is pricing in 0.0% annual earnings growth.
Technical Outlook: Technically, DGICA is in a strong downtrend. The price is approaching resistance at $17.39. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DGICA has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $19.25 (+12.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DGICA is in a strong downtrend. The price is approaching resistance at $17.39. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DGICA has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $19.25 (+12.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$16.82 -
$17.66
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
81.0%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($19.25)
Trading Range Analysis
30-Day Trading Range
$16.82 -
$17.66
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$16.11
Resistance Level
$17.39
Current Trend
Strong Downtrend
Technical data as of
May 15, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.11
Wall Street Target
$19.25
(+12.7%)
Revenue Growth (YoY)
-3.7%
Earnings Growth (YoY)
-56.2%
Profit Margin
6.8%
PE vs Historical
9.1 vs 9.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
0%
(market-implied from PE analysis)
1-Year Target
$17.08
(0%)
2-Year Target
$17.08
(0%)
3-Year Target
$17.08
(0%)
3-Yr Target (if PE normalizes)
(PE: 9→9)
PE COMPRESSION
$17.06
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.1, Growth: 10.3%)
$55.52
(+225%)
Base:
(SPY PE: 9.1, Growth: 10.3%)
$22.92
(+34%)
Bear:
(PE: 7.7, Growth: 10.3%)
$19.48
(+14%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (9x PE) as earnings recover.
Trailing PE: 9.65 | Current EPS (TTM): $1.78
Bull Case
$19.91
(+17%)
Analyst growth 5.3%, PE expands to 10.6
Base Case
$18.10
(+6%)
Market implied 5.3%, PE stable at 9.7
Bear Case
$11.68
(-32%)
Severe decline -20.0%, PE contracts to 8.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 16, 2026 3:06 AM ET
Data refreshes hourly during market hours. Next update: 4:06 AM
Data refreshes hourly during market hours. Next update: 4:06 AM
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Technical Signals Check
Is DGICA showing a specific setup today?
Insider Activity (6 Months)
11
Buys
4
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Mutual Insurance Co Done…
BUY
9000 shares
2026-03-03
William Daniel Delamater
SELL
9000 shares
2026-03-03
David Benjamin Bawel
SELL
674 shares
2025-12-11
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