Direct Line Insurance Group (LON:DLG) Stock Price Up 38.5% – Still a Buy?

Direct Line Insurance Group plc (LON:DLG) rose 38.5% during mid-day trading on Thursday . The stock traded as high as GBX 220.60 ($2.80) and last traded at GBX 219.76 ($2.79). Approximately 426,037,250 shares were traded during trading, an increase of 6,189% from the average daily volume of 6,774,301 shares. The stock had previously closed at GBX 158.70 ($2.01).

Analysts Set New Price Targets

Separately, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a GBX 240 ($3.04) price objective on shares of Direct Line Insurance Group in a research note on Thursday, September 5th.

Direct Line Insurance Group Stock Performance

The firm’s 50 day moving average price is GBX 171.38 and its two-hundred day moving average price is GBX 185.63. The company has a debt-to-equity ratio of 20.04, a quick ratio of 0.28 and a current ratio of 0.57. The firm has a market cap of £2.87 billion, a PE ratio of 690.00, a PEG ratio of 2.42 and a beta of 0.42.

Direct Line Insurance Group Cuts Dividend

The company also recently declared a dividend, which was paid on Friday, October 11th. Stockholders of record on Thursday, September 12th were paid a GBX 2 ($0.03) dividend. The ex-dividend date of this dividend was Thursday, September 12th. This represents a dividend yield of 1.04%. Direct Line Insurance Group’s dividend payout ratio (DPR) is 2,608.70%.

Insider Activity

In related news, insider Carol Hagh acquired 10,000 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The shares were purchased at an average cost of GBX 195 ($2.47) per share, for a total transaction of £19,500 ($24,721.10). Insiders bought a total of 10,170 shares of company stock valued at $1,980,107 in the last 90 days. Company insiders own 0.85% of the company’s stock.

Direct Line Insurance Group Company Profile

Direct Line Insurance Group plc engages in the provision of general insurance products and services in the United Kingdom. The company operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. It offers motor, home, van, landlord, rescue, pet, tradesperson, business, creditor and select, and travel insurance products, as well as commercial insurance for small and medium-sized enterprises.