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

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

Wall Street Analyst Weigh In

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

Direct Line Insurance Group Stock Performance

The company has a market capitalization of £2.87 billion, a price-to-earnings ratio of 690.00, a price-to-earnings-growth ratio of 2.42 and a beta of 0.42. The company has a current ratio of 0.57, a quick ratio of 0.28 and a debt-to-equity ratio of 20.04. The stock’s fifty day simple moving average is GBX 171.38 and its 200-day simple moving average is GBX 185.63.

Direct Line Insurance Group Cuts Dividend

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

Insider Buying and Selling at Direct Line Insurance Group

In related news, insider Carol Hagh bought 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The shares were purchased at an average cost of GBX 195 ($2.47) per share, with a total value of £19,500 ($24,721.10). In the last three months, insiders have bought 10,170 shares of company stock valued at $1,980,107. Insiders own 0.85% of the company’s stock.

About Direct Line Insurance Group

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.