Connor Clark & Lunn Investment Management Ltd. Takes $9.72 Million Position in United Fire Group, Inc $UFCS

Key Points

• Connor Clark & Lunn Investment Management acquired 185,359 United Fire Group shares valued at approximately $9.72 million, giving it a 0.72% stake. Institutional investors collectively own 62.68% of UFCS.
• United Fire Group reported quarterly EPS of $1.30, exceeding analyst expectations of $0.69, while revenue reached $383.73 million versus $347.76 million expected.
• The company announced a quarterly dividend of $0.20 per share, equivalent to a 1.5% yield, and authorized a buyback of up to 2 million shares. Analysts maintain a consensus “Buy” rating with a $52.50 target price.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of United Fire Group, Inc (NASDAQ:UFCS - Free Report) in the second quarter, according to its most recent disclosure with the SEC. The firm purchased 185,359 shares of the insurance provider's stock, valued at approximately $9,720,000. Connor Clark & Lunn Investment Management Ltd. owned approximately 0.72% of United Fire Group at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in UFCS. Globeflex Capital L P purchased a new position in shares of United Fire Group during the 2nd quarter valued at approximately $2,301,000. Vanguard Group Inc. grew its position in shares of United Fire Group by 2.4% during the fourth quarter. Vanguard Group Inc. now owns 1,511,541 shares of the insurance provider's stock worth $54,945,000 after buying an additional 35,338 shares in the last quarter. Los Angeles Capital Management LLC increased its stake in shares of United Fire Group by 111.0% in the fourth quarter. Los Angeles Capital Management LLC now owns 57,647 shares of the insurance provider's stock worth $2,095,000 after buying an additional 30,328 shares during the last quarter. Intech Investment Management LLC increased its stake in shares of United Fire Group by 320.9% in the fourth quarter. Intech Investment Management LLC now owns 50,925 shares of the insurance provider's stock worth $1,851,000 after buying an additional 38,825 shares during the last quarter. Finally, Sierra Summit Advisors LLC acquired a new stake in United Fire Group in the first quarter valued at $933,000. Hedge funds and other institutional investors own 62.68% of the company's stock.

United Fire Group Stock Performance

United Fire Group stock opened at $54.05 on Thursday. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.34 and a quick ratio of 0.34. United Fire Group, Inc has a 12 month low of $29.74 and a 12 month high of $55.82. The company has a fifty day moving average price of $52.19 and a two-hundred day moving average price of $45.05. The company has a market cap of $1.39 billion, a PE ratio of 10.05 and a beta of 0.51.

United Fire Group (NASDAQ:UFCS - Get Free Report) last issued its earnings results on Monday, August 3rd. The insurance provider reported $1.30 earnings per share for the quarter, topping analysts' consensus estimates 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 company had revenue of $383.73 million for the quarter, compared to analysts' expectations of $347.76 million. Research analysts expect that United Fire Group, Inc will post 4.75 earnings per share for the current year.

United Fire Group Dividend Announcement

The firm also recently disclosed 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 dividend on an annualized basis 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%.

United Fire Group declared that its board has approved a stock buyback plan on Wednesday, May 20th that authorizes the company to buyback 2,000,000 shares. This buyback authorization authorizes the insurance provider to purchase shares of its stock through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Zacks Research lowered shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Piper Sandler upped their target price 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. Wall Street Zen lowered shares of United Fire Group from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 2nd. Weiss Ratings raised shares of United Fire Group from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Wednesday, August 19th. Finally, JonesTrading lifted their price target on United Fire Group from $40.00 to $45.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $52.50.

Insiders Place Their Bets

In other United Fire Group news, Director George D. Milligan acquired 4,500 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were purchased at an average price 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 $4,072,237.82. The trade was a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. 6.06% of the stock is currently owned by company insiders.

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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