United Fire Group, Inc Announces Quarterly Dividend of $0.20 (NASDAQ:UFCS)

Key Points

• United Fire Group declared a quarterly dividend of $0.20 per share, payable September 18 to shareholders of record on September 4. The dividend implies an annualized payout of $0.80 and a 1.5% yield.
• The dividend appears well covered, with a current payout ratio of 29.3%; analysts expect a 15.9% payout ratio next year based on projected earnings of $5.03 per share.
• United Fire Group exceeded quarterly earnings expectations, reporting $1.30 in EPS versus the $0.69 consensus and revenue of $383.73 million versus $347.76 million expected. Shares opened at $54.15, near their 52-week high of $55.82.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) announced a quarterly dividend on Friday, August 21st. Stockholders of record on Friday, September 4th will be paid a dividend of 0.20 per share by the insurance provider on Friday, September 18th. This represents a c) annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, September 4th.

United Fire Group has decreased its dividend by an average of 0.1%annually over the last three years. United Fire Group has a payout ratio of 29.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect United Fire Group to earn $5.03 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 15.9%.

United Fire Group Trading Up 0.5%

Shares of UFCS stock opened at $54.15 on Wednesday. The stock has a 50-day simple moving average of $52.60 and a 200 day simple moving average of $45.53. The stock has a market capitalization of $1.39 billion, a P/E ratio of 10.07 and a beta of 0.52. United Fire Group has a fifty-two week low of $29.74 and a fifty-two week high of $55.82. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.15.

United Fire Group (NASDAQ:UFCS - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The insurance provider reported $1.30 EPS for the quarter, topping the consensus estimate of $0.69 by $0.61. United Fire Group had a net margin of 9.57% and a return on equity of 15.19%. The firm had revenue of $383.73 million for the quarter, compared to analysts' expectations of $347.76 million. On average, sell-side analysts expect that United Fire Group will post 4.75 earnings per share for the current fiscal year.

Insider Transactions at United Fire Group

In other news, Director George D. Milligan acquired 4,500 shares of United Fire Group stock in a transaction on Friday, June 5th. The stock was bought at an average cost of $45.23 per share, with a total value of $203,535.00. Following the completion of the purchase, the director owned 90,034 shares of the company's stock, valued at $4,072,237.82. This represents a 5.26% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 6.06% of the company's stock.

Institutional Investors Weigh In On United Fire Group

A number of large investors have recently made changes to their positions in the company. Allworth Financial LP purchased a new stake in United Fire Group in the 2nd quarter worth about $34,000. Smartleaf Asset Management LLC lifted its stake in shares of United Fire Group by 129.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock valued at $25,000 after purchasing an additional 387 shares during the last quarter. Basepoint Wealth LLC acquired a new stake in shares of United Fire Group in the 4th quarter valued at $26,000. Federated Hermes Inc. boosted its holdings in United Fire Group by 109.5% in the fourth quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock worth $43,000 after purchasing an additional 622 shares in the last quarter. Finally, C M Bidwell & Associates Ltd. bought a new stake in United Fire Group in the second quarter worth $66,000. Institutional investors and hedge funds own 62.68% of the company's stock.

About United Fire Group

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.

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