Selective Insurance Group (NASDAQ:SIGI) Shares Gap Down on Disappointing Earnings

Selective Insurance Group, Inc. (NASDAQ:SIGI)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $102.28, but opened at $96.86. Selective Insurance Group shares last traded at $94.55, with a volume of 34,514 shares trading hands.

The insurance provider reported $1.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.88 by ($0.55). The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.11 billion. Selective Insurance Group had a return on equity of 14.43% and a net margin of 8.57%. The firm’s quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the company posted $1.44 earnings per share.

Analysts Set New Price Targets

Several research analysts have recently issued reports on SIGI shares. JMP Securities reiterated a “market perform” rating on shares of Selective Insurance Group in a report on Monday, April 15th. Oppenheimer restated an “outperform” rating and issued a $120.00 price objective on shares of Selective Insurance Group in a report on Friday, April 5th. Piper Sandler restated a “neutral” rating and issued a $104.00 price objective on shares of Selective Insurance Group in a report on Monday, April 1st. Keefe, Bruyette & Woods decreased their price objective on Selective Insurance Group from $111.00 to $109.00 and set a “market perform” rating for the company in a report on Tuesday, February 6th. Finally, Royal Bank of Canada decreased their price objective on Selective Insurance Group from $108.00 to $105.00 and set a “sector perform” rating for the company in a report on Friday, February 2nd. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $105.17.

Insiders Place Their Bets

In other Selective Insurance Group news, COO Brenda M. Hall sold 2,626 shares of the stock in a transaction dated Monday, March 4th. The stock was sold at an average price of $105.88, for a total transaction of $278,040.88. Following the completion of the sale, the chief operating officer now directly owns 10,511 shares in the company, valued at approximately $1,112,904.68. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Selective Insurance Group

Institutional investors and hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP lifted its position in Selective Insurance Group by 188.2% in the 4th quarter. Wellington Management Group LLP now owns 1,450,417 shares of the insurance provider’s stock valued at $144,287,000 after acquiring an additional 947,147 shares in the last quarter. Norges Bank bought a new position in Selective Insurance Group in the 4th quarter valued at about $67,290,000. FMR LLC lifted its position in Selective Insurance Group by 11.5% in the 3rd quarter. FMR LLC now owns 3,866,827 shares of the insurance provider’s stock valued at $398,941,000 after acquiring an additional 398,517 shares in the last quarter. Public Employees Retirement Association of Colorado lifted its position in Selective Insurance Group by 2,195.0% in the 4th quarter. Public Employees Retirement Association of Colorado now owns 257,273 shares of the insurance provider’s stock valued at $25,594,000 after acquiring an additional 246,063 shares in the last quarter. Finally, Victory Capital Management Inc. lifted its position in Selective Insurance Group by 14.4% in the 4th quarter. Victory Capital Management Inc. now owns 1,190,389 shares of the insurance provider’s stock valued at $118,420,000 after acquiring an additional 149,901 shares in the last quarter. Institutional investors own 82.88% of the company’s stock.

Selective Insurance Group Stock Performance

The firm has a market cap of $5.69 billion, a P/E ratio of 16.18, a PEG ratio of 0.75 and a beta of 0.55. The company has a current ratio of 0.30, a quick ratio of 0.30 and a debt-to-equity ratio of 0.18. The company’s 50-day moving average is $103.63 and its two-hundred day moving average is $102.75.

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.