United Fire Group (NASDAQ:UFCS) Sets New 1-Year High Following Better-Than-Expected Earnings

United Fire Group, Inc (NASDAQ:UFCS) shares reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $44.86 and last traded at $43.4940, with a volume of 11722 shares trading hands. The stock had previously closed at $39.85.

The insurance provider reported $1.16 EPS for the quarter, topping the consensus estimate of $0.87 by $0.29. The firm had revenue of $369.44 million during the quarter, compared to analysts’ expectations of $340.16 million. United Fire Group had a net margin of 8.52% and a return on equity of 13.84%.

United Fire Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were issued a dividend of $0.20 per share. The ex-dividend date was Tuesday, February 24th. This is a positive change from United Fire Group’s previous quarterly dividend of $0.16. This represents a $0.80 dividend on an annualized basis and a yield of 1.8%. United Fire Group’s payout ratio is 17.86%.

Analysts Set New Price Targets

A number of analysts recently weighed in on UFCS shares. Wall Street Zen cut shares of United Fire Group from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. JonesTrading raised their target price on shares of United Fire Group from $38.00 to $40.00 and gave the stock a “buy” rating in a report on Monday, March 2nd. Finally, Piper Sandler upgraded shares of United Fire Group from a “neutral” rating to an “overweight” rating and set a $45.00 target price for the company in a report on Wednesday. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, United Fire Group has a consensus rating of “Moderate Buy” and an average price target of $42.50.

Insider Buying and Selling

In related news, Director Christopher R. Drahozal sold 4,250 shares of the firm’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $38.49, for a total value of $163,582.50. Following the completion of the transaction, the director owned 429,113 shares of the company’s stock, valued at approximately $16,516,559.37. This trade represents a 0.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Dee Ann Mcintyre sold 4,250 shares of the firm’s stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $38.84, for a total transaction of $165,070.00. Following the completion of the transaction, the insider directly owned 437,613 shares of the company’s stock, valued at $16,996,888.92. This represents a 0.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,750 shares of company stock valued at $493,723 in the last ninety days. Company insiders own 6.06% of the company’s stock.

Hedge Funds Weigh In On United Fire Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allianz Asset Management GmbH acquired a new position in United Fire Group in the 3rd quarter worth approximately $5,940,000. Hillsdale Investment Management Inc. boosted its stake in United Fire Group by 16.0% in the 3rd quarter. Hillsdale Investment Management Inc. now owns 227,268 shares of the insurance provider’s stock worth $6,913,000 after purchasing an additional 31,400 shares during the period. Royce & Associates LP acquired a new position in United Fire Group in the 3rd quarter worth approximately $2,134,000. LSV Asset Management boosted its stake in United Fire Group by 166.7% in the 3rd quarter. LSV Asset Management now owns 95,000 shares of the insurance provider’s stock worth $2,890,000 after purchasing an additional 59,384 shares during the period. Finally, SG Americas Securities LLC lifted its position in United Fire Group by 294.2% in the 4th quarter. SG Americas Securities LLC now owns 21,676 shares of the insurance provider’s stock worth $788,000 after buying an additional 16,177 shares in the last quarter. Institutional investors and hedge funds own 62.68% of the company’s stock.

United Fire Group Trading Up 9.5%

The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.16. The company has a market cap of $1.12 billion, a PE ratio of 9.72 and a beta of 0.50. The business’s 50-day simple moving average is $38.33 and its 200-day simple moving average is $36.55.

United Fire Group Company Profile

United Fire Group, Inc (NASDAQ: UFCS) is an insurance holding company based in Cedar Rapids, Iowa, that specializes in property and casualty coverage for commercial and personal lines. The company underwrites business through three primary segments: commercial, personal and specialty insurance. Within the commercial segment, United Fire Group offers tailored policies for small- and medium-sized enterprises, including general liability, commercial property and workers’ compensation. Its personal lines cover homeowners, auto, farm and umbrella policies.

United Fire Group distributes its products primarily through a national network of independent insurance agents and brokers.