BlackRock Inc. Acquires Shares of 3,492,305 United Fire Group, Inc $UFCS

Key Points

• BlackRock acquired 3.49 million United Fire Group shares valued at approximately $183.1 million, giving it a 13.61% stake. Institutional investors collectively own 62.68% of the company.
• United Fire Group reported quarterly EPS of $1.30, exceeding the $0.69 consensus estimate, while revenue of $383.7 million also surpassed expectations. Analysts maintain an overall “Buy” rating with an average price target of $52.50.
• The company authorized a 2 million-share repurchase program and declared a quarterly dividend of $0.20 per share, equivalent to an annualized $0.80 dividend and a 1.5% yield.

BlackRock Inc. bought a new position in shares of United Fire Group, Inc (NASDAQ:UFCS - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 3,492,305 shares of the insurance provider's stock, valued at approximately $183,136,000. BlackRock Inc. owned 13.61% of United Fire Group as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Smartleaf Asset Management LLC increased its position in shares of United Fire Group by 129.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock worth $25,000 after acquiring an additional 387 shares in the last quarter. Basepoint Wealth LLC acquired a new stake in shares of United Fire Group in the 4th quarter worth about $26,000. Federated Hermes Inc. lifted its position in United Fire Group by 109.5% in the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock valued at $43,000 after acquiring an additional 622 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in United Fire Group by 812.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,570 shares of the insurance provider's stock valued at $45,000 after acquiring an additional 1,398 shares in the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new position in United Fire Group during the 4th quarter valued at about $48,000. 62.68% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, Director George D. Milligan acquired 4,500 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were acquired at an average cost of $45.23 per share, for a total transaction of $203,535.00. Following the purchase, the director owned 90,034 shares of the company's stock, valued at approximately $4,072,237.82. The trade was a 5.26% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 6.06% of the company's stock.

Analyst Ratings Changes

UFCS has been the topic of several recent analyst reports. JonesTrading raised 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. Zacks Research lowered shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Weiss Ratings upgraded shares of United Fire Group from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, August 19th. Piper Sandler raised their price target on shares of United Fire Group from $57.00 to $60.00 and gave the company an "overweight" rating in a research report on Wednesday, August 5th. Finally, Wall Street Zen downgraded shares of United Fire Group from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 2nd. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, United Fire Group currently has an average rating of "Buy" and an average price target of $52.50.

United Fire Group Price Performance

Shares of NASDAQ:UFCS opened at $53.88 on Friday. The company has a market capitalization of $1.38 billion, a P/E ratio of 10.01 and a beta of 0.51. The company's 50-day moving average is $52.31 and its 200 day moving average is $45.17. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.34 and a current ratio of 0.34. United Fire Group, Inc has a fifty-two week low of $29.74 and a fifty-two week high of $55.82.

United Fire Group (NASDAQ:UFCS - Get Free Report) last posted its quarterly earnings data on Monday, August 3rd. The insurance provider reported $1.30 EPS for the quarter, beating the consensus estimate of $0.69 by $0.61. The business had revenue of $383.73 million for 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%. On average, equities research analysts forecast that United Fire Group, Inc will post 4.75 earnings per share for the current year.

United Fire Group declared that its board has authorized a stock repurchase program on Wednesday, May 20th that allows the company to repurchase 2,000,000 shares. This repurchase authorization allows the insurance provider to buy shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.

United Fire Group Dividend Announcement

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

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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