SIGI Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Not a good buy right now for an impatient buyer. SIGI is trading ~83.9, sitting just under near-term resistance (R1 ~84.18) with weakening momentum (MACD histogram negative and expanding). While fundamentals/news are clearly positive (strong Q4 and ongoing buybacks) and hedge funds are accumulating, the setup is more “good company, mediocre entry” than an immediate high-conviction buy. I would hold here rather than chase into resistance.
Trend/momentum: MACD histogram is -0.172 and deteriorating, signaling bearish momentum building. RSI(6) ~45 is neutral, confirming no strong reversal/buy impulse. Moving averages are converging, consistent with consolidation rather than a clean uptrend. Levels: Pivot ~81.70 is the key line to hold; near-term resistance is tight at ~84.18 (R1) then ~85.72 (R2). With price ~83.9 (right below R1), upside is capped near-term unless it breaks and holds above ~84.2–85.7. Pattern stats provided suggest modest near-term edge: ~70% chance of about -0.46% next day, +1.01% next week, ~flat next month—more “range-bound” than “breakout.”
Intellectia Proprietary Trading Signals:
Flow/positioning: hedge funds buying (reported +110% QoQ increase in buying).
Technical setup is not supportive for an immediate entry: momentum is weakening (negative, expanding MACD) and price is pressing into resistance (~84.18). Industry cycle risk: multiple analysts flag a softening P&C cycle into 2026 and potential ROE compression/headwinds (catastrophe comps, reserving uncertainty). Guidance: management projects 2026 GAAP combined ratio 96.5%–97.5%, which is less impressive than the Q4 run-rate (93.8%), potentially tempering near-term multiple expansion.
Latest quarter highlighted in news: Q4 2025 showed strong operating momentum—revenue +8.7% YoY to ~$1.365B, net income $152.9M, EPS $2.52 (adj. $2.57), combined ratio improved to 93.8%, ROE 14.4%, and book value per share +18%. Prior reported quarter snapshot: 2025/Q3 revenue +8.89% YoY to ~$1.352B, net income +25.63% YoY to ~$113.0M, EPS +25.85% YoY to $1.85. Overall trend: consistent top-line growth with accelerating earnings/EPS and underwriting improvement, plus ongoing capital return via buybacks.
Recent trend is mixed to slightly cautious. Bull case: RBC resumed with Outperform and a $95 target (11/24/2025), arguing limited further multiple compression and attractive positioning. Cautious/neutral views: Keefe Bruyette kept Market Perform and nudged target down to $81 from $82 (01/06/2026); Piper Sandler stayed Neutral with target lifted to $79 from $76 (12/22/2025). Bearish view: Morgan Stanley remains Underweight with a $72 target (11/17/2025), citing a softening cycle. Wall Street pros: strong ROE/book value growth, improving underwriting, and shareholder returns. Cons: cyclical headwinds/ROE compression risk and limited near-term upside given several targets near/below current price. Politicians/congress: no recent congress trading data available; insiders reported neutral.
