Stock Price & Analysis

SIGI stock is currently showing bearish momentum with RSI below 50, suggesting caution. Hold or wait for clearer bullish signals before buying.

SIGI stock is predicted to reach $95 by 2025, driven by recovery from oversold levels and insider confidence, but tempered by analyst downgrades and softer guidance.

The S1 support level for SIGI Stock is $82.99 ,The R1 resistant level for SIGI Stock is $87.3.

As of the end of day on 2025-03-14, the price of SIGI Stock was $86.2.

The target price for SIGI Stock according to analyst rating is 94.17, with the highest price target at 105.00 and the lowest at 87.00. Analysts have a Moderate Buy rating on SIGI Stock overall.

The market cap of SIGI is $5.2B.

Analysis and Insights

To determine whether SIGI is overvalued, we analyze its valuation metrics, financial health, and market sentiment.

Valuation Metrics:

• P/E Ratio: SIGI's P/E ratio is 18 (Q3) and 19.75 (Q4), slightly above industry averages, suggesting moderate valuation.
• EV/EBITDA: At 1.91 (Q3) and 1.95 (Q4), this metric indicates reasonable valuation without significant overpricing.
• P/S Ratio: 1.21 (Q3) and 1.18 (Q4) reflect a fair price relative to revenue.
• P/B Ratio: 1.5 (Q3) and 1.53 (Q4) show the stock is trading near book value, indicating it's not overvalued.

Financial Health:

• Revenue Growth: Total revenue increased from $1.24B (Q3) to $1.26B (Q4), showing positive growth.
• Net Income: Rose from $89.98M to $93.24M, indicating improving profitability.
• ROE: 8.39% (Q3) and 6.97% (Q4) suggest decent returns on equity.
• Current Ratio: 1.47 (Q3) and 1.52 (Q4) indicate strong liquidity.

Market Sentiment and Insider Activity:

• Insider Buying: CFO Patrick Sean Brennan purchased shares at $83.15, below the current price of $84.13, signaling confidence.
• Dividend Yield: 1.5% provides a modest return, appealing to income investors.

Stock Performance:

• Price Range: Trading between $78.13 and $109.58 over 52 weeks, with the current price near the lower end, suggesting potential undervaluation.

Conclusion:

SIGI appears fairly valued with moderate valuation metrics, improving financials, and positive insider sentiment. While the P/E is slightly elevated, it aligns with growth expectations. The stock is not significantly overvalued.

Selective Insurance Group, Inc. is a holding company, which owns ten property and casualty insurance subsidiaries that sell products and services only in the United States. The Company's segments include Standard Commercial Lines, Standard Personal Lines, E&S Lines and Investments. The Standard Commercial Lines segment includes property and casualty insurance products and services to commercial enterprises, typically businesses, non-profit organizations, and local government agencies. The Standard Personal Lines segment consists of property and casualty insurance products and services, including flood insurance coverage sold through the Write Your Own program of the National Flood Insurance Program. The E&S Lines segment consists of property and casualty insurance products and services to commercial customers unable to obtain coverage in the standard marketplace. The Investment segment invests insurance premiums and amounts generated through its capital management strategies.

SIGI stock is predicted to reach $125 by 2030, driven by strong profitability metrics and attractive valuation. The stock's current price of $84.28, combined with a P/E ratio of 12.1, suggests significant upside potential. Analysts expect continued growth in the insurance sector, supporting this long-term price target.

SIGI has a total of 2650 employees.