Bank of New York Mellon Corp Invests $9.69 Million in United Fire Group, Inc $UFCS

Key Points

• Bank of New York Mellon initiated a $9.69 million position in United Fire Group, purchasing 184,759 shares and taking a 0.72% stake. Institutional investors collectively own 62.68% of the insurer.
• United Fire Group reported strong quarterly results, with earnings per share of $1.30 versus the $0.69 consensus and revenue of $383.73 million, above the $347.76 million estimate.
• The company authorized a buyback of up to 2 million shares and declared a quarterly dividend of $0.20 per share, equal to a 1.5% annualized yield. Analysts maintain a consensus “Buy” rating with an average price target of $52.50.

Bank of New York Mellon Corp purchased a new position in shares of United Fire Group, Inc (NASDAQ:UFCS - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 184,759 shares of the insurance provider's stock, valued at approximately $9,689,000. Bank of New York Mellon Corp owned 0.72% of United Fire Group at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in UFCS. GSA Capital Partners LLP acquired a new position in United Fire Group during the 2nd quarter worth approximately $1,677,000. Quantinno Capital Management LP grew its holdings in shares of United Fire Group by 168.7% in the 1st quarter. Quantinno Capital Management LP now owns 43,842 shares of the insurance provider's stock worth $1,625,000 after acquiring an additional 27,526 shares during the period. First Trust Advisors LP raised its holdings in United Fire Group by 1.0% during the first quarter. First Trust Advisors LP now owns 70,452 shares of the insurance provider's stock worth $2,611,000 after purchasing an additional 731 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in United Fire Group by 0.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,489,968 shares of the insurance provider's stock valued at $55,219,000 after purchasing an additional 12,329 shares during the last quarter. Finally, Gallacher Capital Management LLC acquired a new position in shares of United Fire Group during the 1st quarter worth $237,000. Hedge funds and other institutional investors own 62.68% of the company's stock.

Insiders Place Their Bets

In other United Fire Group news, Director George D. Milligan purchased 4,500 shares of the firm's stock in a transaction dated Friday, June 5th. The stock was acquired at an average cost of $45.23 per share, with a total value of $203,535.00. Following the acquisition, the director owned 90,034 shares of the company's stock, valued at approximately $4,072,237.82. This represents a 5.26% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. 6.06% of the stock is currently owned by insiders.

United Fire Group Price Performance

UFCS opened at $54.85 on Thursday. United Fire Group, Inc has a twelve month low of $29.74 and a twelve month high of $55.82. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of 10.20 and a beta of 0.52. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15. The company has a fifty day simple moving average of $52.68 and a 200 day simple moving average of $45.63.

United Fire Group (NASDAQ:UFCS - Get Free Report) last announced its earnings results on Monday, August 3rd. The insurance provider reported $1.30 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.61. The company had revenue of $383.73 million during the quarter, compared to the consensus estimate of $347.76 million. United Fire Group had a return on equity of 15.19% and a net margin of 9.57%. Equities research analysts expect that United Fire Group, Inc will post 4.75 EPS for the current fiscal year.

United Fire Group announced that its board has authorized a share buyback plan on Wednesday, May 20th that allows the company to buyback 2,000,000 outstanding shares. This buyback authorization allows the insurance provider to reacquire shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

United Fire Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, September 4th. United Fire Group's dividend payout ratio is currently 14.87%.

Analysts Set New Price Targets

Several research firms have recently commented on UFCS. Weiss Ratings upgraded shares of United Fire Group from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. JonesTrading upped their price objective on shares of 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 downgraded United Fire Group from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 2nd. Piper Sandler upped their price objective on shares of United Fire Group from $57.00 to $60.00 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. Finally, Zacks Research lowered shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $52.50.

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.

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