Selective Insurance Group (NASDAQ:SIGI) Cut to “Hold” at Zacks Investment Research

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Selective Insurance Group (NASDAQ:SIGIGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, Zacks.com reports. They currently have a $82.00 target price on the insurance provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 6.14% from the stock’s current price.

According to Zacks, “Selective Insurance is poised to witness top-line growth backed by sustained premium growth across its segments. Premiums have benefited from compelling portfolio, high retention ratio, pure renewal price increase and new business growth. Net investment income should benefit from alternative investments in other investments portfolio. It estimates investment income of $200 million from alternative investments in 2022. Geographic expansion plays a vital role in growth. It boasts solid capital position supporting effective capital deployment that enhances shareholder value. Shares of Selective Insurance have outperformed the industry in the past year. However, its exposure to cat loss induces earnings volatility. For 2022 it estimates combined ratio, excluding catastrophe losses, of 91%. Escalating expenses put pressure on operating margin expansion.”

Separately, StockNews.com began coverage on shares of Selective Insurance Group in a report on Thursday, March 31st. They issued a “hold” rating on the stock. Five research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, Selective Insurance Group currently has a consensus rating of “Hold” and a consensus price target of $84.20.

Shares of SIGI stock traded up $0.11 on Wednesday, hitting $77.26. 5,623 shares of the company’s stock traded hands, compared to its average volume of 258,330. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.32 and a current ratio of 0.29. Selective Insurance Group has a one year low of $73.21 and a one year high of $94.35. The company’s fifty day simple moving average is $85.64 and its 200 day simple moving average is $81.62. The stock has a market capitalization of $4.66 billion, a price-to-earnings ratio of 13.70, a P/E/G ratio of 7.00 and a beta of 0.83.

Selective Insurance Group (NASDAQ:SIGIGet Rating) last released its earnings results on Wednesday, May 4th. The insurance provider reported $1.41 EPS for the quarter, beating the consensus estimate of $1.37 by $0.04. Selective Insurance Group had a net margin of 10.19% and a return on equity of 13.77%. The company had revenue of $846.10 million for the quarter, compared to analyst estimates of $883.09 million. During the same quarter last year, the firm earned $1.70 EPS. The firm’s quarterly revenue was up 5.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Selective Insurance Group will post 5.8 earnings per share for the current fiscal year.

Several institutional investors and hedge funds have recently made changes to their positions in SIGI. Morgan Stanley boosted its stake in shares of Selective Insurance Group by 72.0% during the 2nd quarter. Morgan Stanley now owns 155,201 shares of the insurance provider’s stock valued at $12,594,000 after purchasing an additional 64,993 shares in the last quarter. Swiss National Bank lifted its position in Selective Insurance Group by 0.5% during the 3rd quarter. Swiss National Bank now owns 132,700 shares of the insurance provider’s stock valued at $10,023,000 after acquiring an additional 700 shares during the period. Mackenzie Financial Corp purchased a new position in Selective Insurance Group during the 3rd quarter valued at about $263,000. Barclays PLC lifted its position in Selective Insurance Group by 60.2% during the 3rd quarter. Barclays PLC now owns 64,305 shares of the insurance provider’s stock valued at $4,857,000 after acquiring an additional 24,170 shares during the period. Finally, Teacher Retirement System of Texas lifted its position in Selective Insurance Group by 22.8% during the 3rd quarter. Teacher Retirement System of Texas now owns 9,654 shares of the insurance provider’s stock valued at $729,000 after acquiring an additional 1,793 shares during the period. 81.37% of the stock is currently owned by hedge funds and other institutional investors.

Selective Insurance Group Company Profile (Get Rating)

Selective Insurance Group, Inc, together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The company offers property insurance products, which covers the financial consequences of accidental loss of an insured’s real property, personal property, and/or earnings due to the property’s loss; and 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, as well as flood insurance products.

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