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Selective Insurance Group - AI Stock Analysis
Analysis generated May 6, 2025
Selective Insurance Group, Inc. (NASDAQ: SIGI) is a US-based insurance company that focuses on providing a range of insurance products and services to both personal and commercial clients. Established over 90 years ago, the company has grown to be a significant player in the insurance industry, offering property and casualty insurance, among other products. With a reputation for strong customer service and solid financial performance, Selective Insurance Group has carved out a niche for itself in the competitive insurance market.
Fundamental Analysis
The revenue for the last quarter was $1.29 billion. This represents an increase of 2.30% compared to the previous quarter, indicating steady growth. Year over year, the revenue saw an impressive increase of 10.32%, underscoring robust growth in business operations.
Net income for the last quarter was $110 million, up 15.03% from the previous quarter and 33.18% year over year. This indicates strong profitability, showing that the company is effectively managing its costs while increasing its earnings.
The EBITDA for the last quarter was $158 million, reflecting a 17.70% increase from the previous quarter and 32.62% year over year. EBITDA growth is a key indicator of operational efficiency and profitability.
The current Price-to-Earnings (P/E) ratio stands at 24.12. This P/E ratio is within a normal range, neither particularly high nor low, suggesting that the stock is fairly valued at current earnings levels.
Technical Analysis
Today's stock price is $88.68, up 2.72% compared to a month ago, which indicates a positive short-term trend. However, the price has decreased by 9.81% over the past year, potentially raising concerns about long-term performance.
The 10-day Simple Moving Average (SMA10) is 87.77, slightly higher than the previous SMA10 of 87.66. This suggests a potential upward trend in price movement, which is supported by a bullish overall trend.
The Relative Strength Index (RSI) is currently at 28.9, indicating that the stock may be oversold and presenting a potential buying opportunity.
Alternative Data Analysis
Selective Insurance Group has 109 open positions, down by 30% in the last couple of months. This could indicate efforts to improve margins or cut costs, but may also point to slowing growth.
The employee sentiment is neutral, highlighting neither strong dissatisfaction nor overwhelming positivity.
The company's webpage attracts an estimated 250,000 visitors, up by 31% over the last couple of months. This bullish trend could indicate increasing customer interest and potential for new business.
There has been no significant change in the number of mobile app downloads, with an estimate of zero daily downloads. This stagnancy could be a concern regarding the company's digital engagement strategy.
On social media, Selective Insurance Group has 1,800 followers on Instagram and 1,300 followers on Twitter, with Instagram followers up by 3% in the last couple of months. This reflects a modest increase in customer engagement.
The AltIndex AI score for Selective Insurance Group is 58, which signals a hold. This score aggregates fundamental, technical, and alternative data to provide a comprehensive view of the stock's potential performance.
Conclusion and Recommendation
Based on the comprehensive analysis, Selective Insurance Group is demonstrating strong financial health and profitability. With robust revenue, net income, and EBITDA growth, the company's fundamentals are solid. Although the technical indicators reflect mixed signals, the short-term trend appears positive. In contrast, the recent downtrend in open positions and stagnant mobile app engagement could be a concern for growth.
Given the overall analysis, the stock currently seems fairly valued and is displaying both strengths and cautions. Therefore, it is recommended to hold the stock, closely monitoring for any significant changes in financial performance and market trends.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
