Should I Buy DGICA? DGICA 2026 Analysis

Should You Buy Donegal Group Inc (DGICA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

18.510

1 Day change

0.33%

52 Week Range

21.120

Analysis Updated At

2026/01/29

Donegal Group Inc (DGICA) is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has shown some positive financial performance in the latest quarter, the technical indicators, options sentiment, and lack of significant positive catalysts suggest a neutral outlook. The stock's recent trend indicates potential short-term downside, and there are no strong trading signals or influential buying activity to support an immediate buy decision.

Technical Analysis

The MACD is below zero and negatively contracting, suggesting bearish momentum. RSI is neutral at 39.926, and moving averages are converging, indicating no clear trend. Support and resistance levels show the stock is trading near its pivot point of 18.815, with resistance at 19.455 and support at 18.174. Overall, the technical indicators do not signal a strong buy opportunity.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Net income increased by 19.87% YoY in Q3 2025, and EPS grew by 8.00% YoY, indicating improving profitability. Analyst Meyer Shields raised the price target from $20 to $21, showing moderate confidence in the stock.

Neutral/Negative Catalysts

Revenue dropped by 2.31% YoY in Q3 2025, indicating potential challenges in growth. The stock's trend analysis suggests a 70% chance of declining by -4.25% in the next week and -4.85% in the next month. No recent news, congress trading data, or significant insider/hedge fund activity to drive positive sentiment.

Financial Performance

In Q3 2025, revenue dropped by 2.31% YoY to $245.92M, but net income increased by 19.87% YoY to $20.08M. EPS rose by 8.00% YoY to 0.54. Gross margin remained unchanged. The financials show profitability improvements but declining revenue raises concerns about growth.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Keefe Bruyette analyst Meyer Shields raised the price target from $20 to $21 and maintained a Market Perform rating. Analysts are neutral on the stock, with no strong buy recommendations.

1 Analyst Rating

Wall Street analysts forecast DGICA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DGICA is 21 USD with a low forecast of 21 USD and a high forecast of 21 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

1 Hold

0 Sell

Hold

Current: 18.450

Low

Averages

High

Current: 18.450

Low

Averages

High

Keefe Bruyette

Meyer Shields

Market Perform

maintain

$20 -> $21

AI Analysis

2026-01-06

Reason

Keefe Bruyette

Meyer Shields

Price Target

$20 -> $21

AI Analysis

2026-01-06

maintain

Market Perform

Reason

Keefe Bruyette analyst Meyer Shields raised the firm's price target on Donegal Group to $21 from $20 and keeps a Market Perform rating on the shares.

Janney Montgomery Scott

Neutral -> Buy

upgrade

$21

2025-09-02

Reason

Janney Montgomery Scott

Price Target

$21

2025-09-02

upgrade

Neutral -> Buy

Reason

Janney Montgomery Scott upgraded Donegal Group to Buy from Neutral with a $21 fair value estimate.

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DGICA Should I Buy

DGICA Should I Buy

Should You Buy Donegal Group Inc (DGICA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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