Direct Line Insurance Group plc Insider Purchase

Direct Line Insurance Group plc (LON:DLG) saw insider Adam Winslow buy 89 shares of the company's stock on Monday, October 28th. The acquisition was made at an average price of GBX 169 (approximately $2.19) per share, totaling £150.41 (around $195.06).

In addition to this recent purchase, Adam Winslow has also engaged in previous stock transactions. Notably, on Friday, September 27th, he acquired 81 shares at an average price of GBX 186 (about $2.41) per share, resulting in a total investment of £150.66 (approximately $195.38).

Direct Line Insurance Group Stock Performance

During midday trading on Tuesday, Direct Line Insurance Group shares experienced a slight decline, falling by GBX 2.40 to reach GBX 166.10 (around $2.15). The trading volume was significantly higher than usual, with 16,202,745 shares exchanged compared to an average of 5,275,106. The company's financial metrics include a current ratio of 0.57, a quick ratio of 0.28, and a notably high debt-to-equity ratio of 20.04. Over the past year, the stock has recorded a low of GBX 149.50 (about $1.94) and a peak of GBX 240.10 (around $3.11). Currently, the 50-day simple moving average stands at GBX 181.99 while the 200-day simple moving average is at GBX 189.79. Direct Line Insurance Group has a market capitalization of £2.16 billion, with a staggering price-to-earnings ratio of 722.17 and a price-to-earnings-growth ratio of 2.42, along with a beta of 0.42.

Direct Line Insurance Group Cuts Dividend

The company announced a dividend, which was issued to shareholders on Friday, October 11th. Shareholders on record as of Thursday, September 12th received a dividend of GBX 2 (about $0.03) per share, with this date also designated as the ex-dividend date. This represents a yield of 1.04%. However, the company’s dividend payout ratio is an alarming 2,608.70%, indicating a potential issue in sustainability.

Wall Street Analyst Weigh In

Brokerage firms have recently updated their opinions on Direct Line Insurance Group. Berenberg Bank lowered its price target from GBX 220 (around $2.85) to GBX 215 (approximately $2.79), maintaining a "hold" rating. Conversely, Deutsche Bank reiterated a "buy" rating, setting a target price of GBX 240 (around $3.11). Overall, three equity research analysts have assigned a hold rating while two suggest buying the stock. Consensus data points to a "Hold" rating with a target price set at GBX 217.25 (about $2.82) according to MarketBeat.com.

Direct Line Insurance Group Company Profile

Direct Line Insurance Group plc primarily provides general insurance products and services across the United Kingdom. The company operates through various segments, including Motor, Home, Rescue and Other Personal Lines, as well as Commercial lines. It offers a wide range of insurance solutions, including motor, home, van, landlord, rescue, pet, tradesperson, business, creditor, select, and travel insurance, along with commercial insurance tailored for small and medium-sized enterprises.

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