Donegal Group's Class B shares show a confirmed technical breakout and an exhausted-upside price target, while a quality score below the engine's exit floor and elevated short interest temper the setup.
Thesis pillars
- Quality Below Floor Weak Piotroski→Stable
- Technical Breakout Golden Cross→Stable
- Asymmetry Exhausted Target Flat→Stable
- +2 more pillars — see the Why tab for full reasoning
Donegal Group, Inc. (DGICB) Stock Analysis
Breakout setup · Inst Constrain edge
Financial Services · Insurance - Property & Casualty
Sell if holding. Engine safety override at $23.33: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: Below-average business quality.
Donegal Group is a property and casualty insurance holding company whose subsidiaries, led by 80%-pool-participant Atlantic States, write commercial and personal lines insurance in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states through about 2,000 independent... Read more
Sell if holding. Engine safety override at $23.33: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Score 4.1/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 24d clear, semi cycle peak clear, materials cycle peak clear). Fails on SEC filing concern. Suitability: speculative.
About Donegal Group, Inc.
About Donegal Group, Inc.
Donegal Group's insurance subsidiaries wrote $921.2 million in net premiums earned during 2025, up from $301.5 million in 2006, across three segments -- investment, commercial lines, and personal lines -- sold through roughly 2,000 independent agencies in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states. A substantial portion of that business is concentrated in Pennsylvania, Michigan, Delaware, Maryland, and Virginia, and the company posted a 2025 GAAP combined ratio of 95.4%, better than the industry's 95.0% average. Donegal Mutual Insurance Company, the company's controlling affiliate, holds approximately 70% of the combined voting power of DGI's Class A and Class B common stock.
Donegal Group earns underwriting profit and investment income through its insurance subsidiaries, led by Atlantic States Insurance Company, which receives an 80% allocation of the pooled premiums, losses, and expenses it shares with affiliate Donegal Mutual under a proportional reinsurance pooling agreement dating to 1986; the business Atlantic States derives from that pool represents a significant percentage of DGI's total consolidated revenues. Commercial lines products consist primarily of commercial automobile, commercial multi-peril, and workers' compensation policies, while personal lines are led by homeowners and private passenger automobile coverage. Donegal Mutual also provides catastrophe and liability reinsurance to DGI's subsidiaries above a $3.0 million per-company retention, and the company invests a high percentage of assets in diversified, investment-grade fixed-maturity securities, keeping only about 3.0% of its portfolio in equities as of December 31, 2025.
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Donegal's underwriting results concentrate on a handful of Mid-Atlantic states rather than a broad national footprint: the 10-K states that the company and Donegal Mutual conduct business in a limited number of states, with a concentration of business in Pennsylvania, Michigan, Delaware, Maryland, and Virginia, and that any single catastrophe or adverse condition affecting those states could adversely affect results. The company has already exited commercial lines in Georgia and Alabama and is winding down its legacy farm product line (about $6 million in premiums) rather than modernize it, reinforcing that its five core states -- not the full 21-state license footprint -- carry the underwriting weight that determines DGI's results in any given catastrophe year.
See also: Financial Services · Insurance - Property & Casualty
From Donegal Group, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-07-07Recent Developments — Donegal Group, Inc.
Material events (past 30 days)
- 8K Jun 17, 2026 HIGH Item 4.01: The Audit Committee dismissed KPMG as Donegal Group's independent registered public accounting firm effective June 11, 2026; KPMG's reports for 2025 and 2024 contained no adverse opinion, disclaimer, qualification, or reported disagreements. No successor auditor named in the excerpt.
Generated 2026-07-07T14:22:12Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicPennsylvania, Michigan, Delaware, Maryland and Virginia10-K Item 1A: 'A substantial portion of their business consists of private passenger and commercial automobile, homeowners, commercial multi-peril and workers' compensation insurance in Pennsylvania, Michigan, Delaware, Maryland and Virginia.'
- MEDIUMcounterpartyDonegal Mutual underwriting pool10-K Item 1: 'The business Atlantic States derives from the underwriting pool represents a significant percentage of our total consolidated revenues.'
Material Events(8-K, last 90d)
- 2026-06-17Item 4.01HIGHThe Audit Committee dismissed KPMG as Donegal Group's independent registered public accounting firm effective June 11, 2026; KPMG's reports for 2025 and 2024 contained no adverse opinion, disclaimer, qualification, or reported disagreements. No successor auditor named in the excerpt.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
6 floor-breakers
Revenue shrinking — -3.7% YoY. Growth thesis broken unless recovery story develops.static
Volatile — 9.0% daily ATR makes tight stops impractical. Position-size conservatively.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $23.33: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Prior stop was $22.32. Score 4.1/10, moderate confidence.
Take-profit target: $27.60 (+15.0% upside). Prior stop was $22.32. Stop-loss: $22.32.
Quality below floor (2.6 < 4.0).
Donegal Group, Inc. trades at a P/E of 13.3 (forward N/A). TrendMatrix value score: 8.1/10. Verdict: Sell.
11 analysts cover DGICB with a consensus score of 4.0/5.
What does Donegal Group, Inc. do?Donegal Group is a property and casualty insurance holding company whose subsidiaries, led by 80%-pool-participant...
Donegal Group is a property and casualty insurance holding company whose subsidiaries, led by 80%-pool-participant Atlantic States, write commercial and personal lines insurance in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states through about 2,000 independent agencies. Net premiums earned reached $921.2 million in 2025, with business substantially concentrated in Pennsylvania, Michigan, Delaware, Maryland, and Virginia, and controlling affiliate Donegal Mutual holding approximately 70% of DGI's combined voting power.