Selective Insurance Trades Above 50-Day SMA: Time to Buy the Stock?

Core Viewpoint - Selective Insurance Group, Inc. (SIGI) is currently experiencing a short-term bullish trend, trading above its 50-day simple moving average, despite a 17.2% decline from its 52-week high [1][2]. Financial Performance - As of April 11, 2025, SIGI's share price was $86.63, down from a 52-week high of$104.67 [1]. - SIGI has underperformed the industry with a year-to-date loss of 7.4% [5]. - The average target price from seven analysts is $93.57 per share, indicating a potential upside of 8.8$7.43, reflecting a 127.2% year-over-year increase, with revenues projected to rise by 10.4% to $5.4 billion [14]. Valuation Metrics - SIGI shares are trading at a price-to-book ratio of 1.8, which is higher than the industry average of 1.61 [9]. - Return on equity for SIGI was 7.3$405 million in 2025, supported by a growing invested asset base and higher book yields [23]. Market Position - SIGI's wealth distribution strategy includes regular dividend increases and share buybacks, with a dividend yield of 1.8%, making it attractive for yield-seeking investors [25]. - Despite a favorable leverage position, increasing expenses have impacted margin expansion, leading to a cautious outlook on the stock [26].