Shares of Safety Insurance Group, Inc. (NASDAQ:SAFT) crossed above their two-hundred-day moving average during trading on October 8, 2023. The stock, which has a two-hundred-day moving average of $73.80, reached a peak of $79.74 before closing at $79.29 with a trading volume of 51,571 shares. This upward movement raises questions about the stock’s potential trajectory and whether investors should consider selling.
Analysts have expressed mixed views on the stock’s performance. Weiss Ratings reissued a “hold (c)” rating for Safety Insurance Group in a research note issued on the same day. Currently, one research analyst has assigned a “hold” rating, leading to a consensus rating of “hold” based on data from MarketBeat.
Quarterly Performance and Dividend Announcement
The company reported its earnings results on November 3, 2023, revealing earnings per share (EPS) of $1.48, which fell short of analysts’ expectations of $1.80 by $0.32. Safety Insurance Group noted a net margin of 7.09% and a return on equity of 8.85%, with revenues amounting to $323.21 million for the quarter.
Additionally, the firm announced a quarterly dividend of $0.92 per share, paid on December 15, 2023. Shareholders who were on record by December 1, 2023 received this dividend, translating to an annualized dividend of $3.68 with a yield of 4.6%. The company’s current payout ratio stands at 62.48%, indicating a balanced approach to returning value to shareholders.
Institutional Investment Activity
Recent activities by institutional investors underscore a growing interest in Safety Insurance Group. Triumph Capital Management acquired a new position valued at approximately $95,000 in the third quarter. Meanwhile, Tudor Investment Corp ET AL increased its holdings by 285.7%, now owning 28,204 shares valued at $1,994,000 after acquiring an additional 20,892 shares.
Other notable transactions include Dark Forest Capital Management LP, which lifted its stake by 34.4% to own 25,098 shares worth $1,774,000, and Virtus Advisers LLC, which purchased a new position valued at $196,000. Overall, institutional investors hold 81.04% of the stock, reflecting a strong institutional presence in the company.
Safety Insurance Group, incorporated in Massachusetts in 1994, operates primarily in the property and casualty insurance sector. Its main subsidiary, Safety Insurance Company, has roots dating back to 1923. Headquartered in Boston, the company specializes in providing private passenger automobile and homeowners insurance, as well as other coverages.
As the stock continues to fluctuate and market conditions evolve, investors will be watching closely for further developments and insights regarding Safety Insurance Group’s performance and strategic direction.
