Investments Shift: Squarepoint Cuts Stake in Selective Insurance Group
In a strategic move, Squarepoint Ops LLC significantly reduced its investment in Selective Insurance Group, Inc. by 47.9% during the second quarter. According to a recent SEC filing, Squarepoint now holds 15,418 shares, valued at approximately $1.34 million. This shift highlights the firm's response to market conditions and regulatory compliance requirements.
Several other investment firms also adjusted their positions in the insurance industry. Martingale Asset Management increased its stake by 0.5% in Q1 to 28,140 shares, worth $2.58 million. UMB Bank expanded its holdings by 16.3% in Q2, acquiring 1,079 shares valued at $93,000. HSBC Holdings reported a 1.7% increase in shares during Q1, bringing its total to 10,075 shares worth $922,000. Similarly, Pullen Investment Management saw a 0.9% rise in Q2 with 22,748 shares valued at $1.97 million, while Parallel Advisors significantly increased its stake by 219.5%, owning 361 shares worth $31,000. Institutional investors and hedge funds now control 82.88% of Selective Insurance Group's shares.
Financial Performance and Stock Analysis
Selective Insurance Group's stock recently opened at $84.53, with a market capitalization of $5.11 billion. The company maintains a price-to-earnings ratio of 13.02 and a low beta of 0.26, suggesting reduced volatility in risk management processes compared to broader markets. The latest quarterly earnings report revealed earnings per share at $1.75, outperforming expectations by $0.04. The firm's revenue for the quarter reached $1.36 billion, marking a 9.3% year-over-year increase.
The company recently boosted its quarterly dividend to $0.43 per share, offering an annual yield of 2.0%, with a payout ratio reported at 26.50%. Such growth aligns with Selective Insurance Group's commitment to shareholder value while adhering to industry regulatory standards.
Analysts' Insights and Company Expansion
Equity analysts have revised their ratings and price targets, reflecting market dynamics. Morgan Stanley increased its target price to $72.00 but maintained an "underweight" rating. BMO Capital Markets downgraded the stock to "market perform" with an $81.00 target. Weiss Ratings and Zacks Research issued "hold" ratings, while the consensus among analysts remains a "Hold" with an average target price of $81.80.
Founded in Branchville, New Jersey, Selective Insurance Group transformed from a regional property and casualty insurer to a public carrier post-IPO in 1999. The company has expanded its offerings through strategic acquisitions and organic growth, serving both commercial and personal lines markets. This evolution underscores its robust underwriting and claims management processes, reflecting its adaptive business strategy in the insurance field.