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Selective Insurance Group, Inc. SIGI has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. As of April 11, 2025, its share price was $86.63, down 17.2% from its 52-week high of $104.67.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or downtrend.
Strong segmental results, focus on accelerating growth and a stable capital position should continue to drive Selective Insurance.
SIGI Price Movement vs. 50-Day Moving Average
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SIGI Lags Industry
SIGI has lost 7.4% year to date, underperforming the industry in the same time frame.
SIGI vs. Industry
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SIGI Shares Are Expensive
SIGI shares are trading at a premium to the industry. Its price-to-book of 1.8 is higher than the industry average of 1.61X.
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Shares of other players like Cincinnati Financial Corporation CINF, CNA Financial Corporation CNA and AXIS Capital Holdings Limited AXS are trading at a multiple lower than the industry.
Average Target Price Reflects an Upside
Based on short-term price targets offered by seven analysts, the Zacks average price target is $93.57 per share. The average indicates a potential 8.8% upside from the last closing price.
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Optimistic Growth Projections for SIGI
The Zacks Consensus Estimate for 2025 earnings is pegged at $7.43, indicating a 127.2% year-over-year increase on 10.4% higher revenues of $5.4 billion. The consensus estimate for 2026 is pegged at $8.34, indicating a 12.3% year-over-year increase on 7.9% higher revenues of $5.8 billion.
Mixed Analyst Sentiment for SIGI
The Zacks Consensus Estimate for 2025 earnings has moved 0.7% south while the same for 2026 has moved 0.3% north in the last seven days.
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SIGI’s Favorable Return on Capital
Return on equity, which reflects the company’s efficiency in utilizing shareholders' funds, was 7.3% in the trailing 12 months, lower than the industry average of 8.3%.
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Return on invested capital in the trailing 12 months was 3.7%, lagging the industry average of 6.4%. It reflects SIGI’s inefficiency in utilizing funds to generate income.
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SIGI’s Growth Path
Selective Insurance has been focused on improving its organic growth. Its growth strategy includes appointing new distribution partners to achieve a 25% agent market share and expanding to new states. The insurer also looks to increase its share of distribution partners' overall premium to 12% at its Commercial Lines business.
Better pricing, new business growth and a high retention ratio should continue to drive overall premium.