United Fire Group (NASDAQ:UFCS) Hits New 52-Week High – Here’s Why

United Fire Group, Inc (NASDAQ:UFCS)’s share price reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $50.00 and last traded at $49.87, with a volume of 35476 shares. The stock had previously closed at $48.50.

Analyst Upgrades and Downgrades

Several brokerages have commented on UFCS. Zacks Research raised shares of United Fire Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, May 8th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of United Fire Group in a research report on Wednesday, May 13th. JonesTrading increased their price objective on United Fire Group from $40.00 to $45.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Wall Street Zen upgraded United Fire Group from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Finally, Piper Sandler boosted their target price on United Fire Group from $45.00 to $57.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $51.00.

United Fire Group Trading Up 1.6%

The company’s fifty day moving average is $45.09 and its two-hundred day moving average is $39.82. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.15. The stock has a market cap of $1.31 billion, a price-to-earnings ratio of 10.29 and a beta of 0.52.

United Fire Group (NASDAQ:UFCS) last posted its quarterly earnings results on Tuesday, May 5th. The insurance provider reported $1.16 EPS for the quarter, topping the consensus estimate of $0.87 by $0.29. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. The company had revenue of $369.44 million during the quarter, compared to analysts’ expectations of $340.15 million. On average, research analysts predict that United Fire Group, Inc will post 4.69 EPS for the current fiscal year.

United Fire Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were paid a dividend of $0.20 per share. The ex-dividend date was Friday, June 5th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.6%. United Fire Group’s payout ratio is presently 16.13%.

United Fire Group declared that its Board of Directors has approved a share repurchase program on Wednesday, May 20th that permits the company to buyback 2,000,000 shares. This buyback authorization permits the insurance provider to buy shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other United Fire Group news, Director George D. Milligan purchased 4,500 shares of the business’s stock in a transaction on Friday, June 5th. The shares were bought at an average cost of $45.23 per share, for a total transaction of $203,535.00. Following the completion of the purchase, the director directly owned 90,034 shares in the company, valued at approximately $4,072,237.82. This represents a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. 6.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Invesco Ltd. raised its position in shares of United Fire Group by 108.8% during the 2nd quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider’s stock worth $9,959,000 after acquiring an additional 180,836 shares in the last quarter. Royce & Associates LP boosted its holdings in United Fire Group by 236.4% in the fourth quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider’s stock valued at $8,576,000 after purchasing an additional 165,789 shares in the last quarter. AQR Capital Management LLC increased its stake in United Fire Group by 59.5% in the second quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider’s stock valued at $8,641,000 after purchasing an additional 112,318 shares during the last quarter. UBS Group AG increased its stake in United Fire Group by 79.4% in the third quarter. UBS Group AG now owns 211,339 shares of the insurance provider’s stock valued at $6,429,000 after purchasing an additional 93,525 shares during the last quarter. Finally, First Trust Advisors LP acquired a new stake in United Fire Group during the third quarter worth approximately $2,080,000. 62.68% of the stock is owned by institutional investors and hedge funds.

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.