Sei Investments Co., a renowned investment management firm, has disclosed that it has increased its stake in Selective Insurance Group, Inc. (NASDAQ:SIGI) by 56.3% in the fourth fiscal quarter. According to the company’s latest Form 13F filing with the Securities and Exchange Commission (SEC), Sei Investments Co. owned approximately 0.11% of Selective Insurance Group, worth $6,136,000 at the end of the most recent quarter.
Selective Insurance Group is a distinguished New Jersey-based insurance holding company that offers property and casualty insurance products to commercial and individual customers. The company operates through four business segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments.
The company recently reported its quarterly earnings results on May 3rd this year. During this time period, Selective Insurance Group saw revenue for the quarter come in at $999.80 million – slightly below analyst estimates of $1 billion. However, earnings per share for the quarter came in at $1.44 – missing analysts’ consensus estimates of $1.57 by ($0.13).
Despite this setback during the previous fiscal quarter, sell-side analysts have predicted that Selective Insurance Group could potentially see an EPS growth rate of 6.41% for the current fiscal year.
Moreover, this recent surge in Sei Investments Co.’s interest in Selective Insurance Group may signify increasing prospects for investors looking to capitalize on long-term gains within the insurance sector.
In conclusion, Sei Investments Co.’s acquisition underscores how established institutional investors are still positioning themselves to obtain shares of this well-regarded property and casualty insurer as it strives to maintain its market position providing various types of insurance products including non-profit organisations and local government agencies among many others operating across all industries from which its customer base is derived from which builds confidence around greater profitability potential moving forward.
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Institutional Investors and Hedge Funds Increase Holdings in Selective Insurance Group, Inc.
Selective Insurance Group, Inc. has recently seen changes in the holdings of various hedge funds and institutional investors, according to publicly available financial information. One such investor, the Oregon Public Employees Retirement Fund, raised its stake in Selective Insurance Group by 0.7% in Q4 2020 and now owns over 17,000 shares worth $1,572,000. Similarly, Dakota Wealth Management increased its position by 4.9% in Q3 and Mackenzie Financial Corp boosted its holdings by 4.6% in Q1 of this year alone. Creative Planning also lifted its position marginally during Q2 while Harbor Investment Advisory raised its stake by almost 20% during Q4 of last year.
Overall, over 83% of the firm’s outstanding stocks are owned by these institutional investors and hedge funds. Currently trading at approximately $98 per share, Selective Insurance Group offers property and casualty insurance products through different segments including Standard Commercial Lines, Standard Personal Lines,and E&S Lines along with an Investments division.
The company has a market capitalization of around $5.99 billion with a P/E ratio of 23.97 and a P/E/G ratio of 0.80 indicating it is fairly valued for investors seeking growth opportunities as well as sustainable dividend payouts.The business recently declared a quarterly dividend on June 1st which amounted to $0.30 per share for stockholders as per records dated May 15th.
Despite its strong fundamentals and steady returns to shareholders, concerns have arisen about potential valuation challenges faced by Selective Insurance Group from certain quarters.The company has recently witnessed downgrades from several brokerage firms including Keefe,Bruyette & Woods who lowered its price target from $107 to $104 reflecting lower conviction on potential yield growth opportunities.Another research note from Bank of America cautioned that selective insurance group may under-perform relative peers due to Bearish sentiments impacting their own valuations.
However, analyst consensus ratings continue to remain relatively neutral with one buy rating and a majority of other which indicate that the stock offers a ‘hold’ opportunity.Investors therefore should weigh in the positives along with headwinds before deciding on whether to add Selective Insurances Group to their portfolio.