Hillsdale Investment Management Inc. Lowers Stock Holdings in United Fire Group, Inc $UFCS

Key Points

• Hillsdale Investment Management cut its stake in United Fire Group by 11.2% in the fourth quarter, though institutional ownership remains high at 62.68% of shares outstanding.
• Insiders have been selling shares, including Director Christopher R. Drahozal and major shareholder Dee Ann McIntyre, while total insider sales over the past 90 days reached 12,750 shares.
• United Fire Group reported better-than-expected quarterly results, authorized a 2 million-share buyback, and declared a $0.20 quarterly dividend; analysts currently rate the stock a Buy with an average price target of $51.00.

Hillsdale Investment Management Inc. reduced its position in shares of United Fire Group, Inc (NASDAQ:UFCS - Free Report) by 11.2% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 201,768 shares of the insurance provider's stock after selling 25,500 shares during the period. Hillsdale Investment Management Inc. owned about 0.79% of United Fire Group worth $7,334,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also modified their holdings of the company. Vanguard Group Inc. boosted 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 during the period. Dimensional Fund Advisors LP boosted its position in shares of United Fire Group by 0.5% during the third quarter. Dimensional Fund Advisors LP now owns 1,466,752 shares of the insurance provider's stock worth $44,618,000 after buying an additional 7,230 shares during the period. Geode Capital Management LLC boosted its position in shares of United Fire Group by 5.1% during the fourth quarter. Geode Capital Management LLC now owns 615,052 shares of the insurance provider's stock worth $22,361,000 after buying an additional 29,679 shares during the period. Invesco Ltd. boosted its position in shares of United Fire Group by 20.8% during the third quarter. Invesco Ltd. now owns 419,177 shares of the insurance provider's stock worth $12,751,000 after buying an additional 72,169 shares during the period. Finally, AQR Capital Management LLC boosted its position in shares of United Fire Group by 59.5% during the second quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider's stock worth $8,641,000 after buying an additional 112,318 shares during the period. 62.68% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other United Fire Group news, Director Christopher R. Drahozal sold 4,250 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $38.49, for a total value of $163,582.50. Following the sale, the director directly owned 429,113 shares in the company, valued at $16,516,559.37. This trade represents a 0.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Dee Ann Mcintyre sold 4,250 shares of the firm's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $38.84, for a total value of $165,070.00. Following the completion of the sale, the insider owned 437,613 shares in the company, valued at approximately $16,996,888.92. This represents a 0.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 12,750 shares of company stock worth $493,723. 6.06% of the stock is owned by insiders.

United Fire Group Trading Down 1.0%

NASDAQ:UFCS opened at $44.33 on Friday. The firm has a market cap of $1.14 billion, a PE ratio of 8.94 and a beta of 0.50. The stock has a fifty day moving average price of $41.74 and a 200 day moving average price of $38.49. United Fire Group, Inc has a 12-month low of $25.79 and a 12-month high of $49.94. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15.

United Fire Group (NASDAQ:UFCS - Get Free Report) last released its earnings results on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.87 by $0.29. The firm had revenue of $369.44 million during the quarter, compared to analyst estimates of $340.16 million. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%. Sell-side analysts anticipate that United Fire Group, Inc will post 4.69 earnings per share 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 repurchase 2,000,000 outstanding shares. This repurchase authorization allows the insurance provider to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its shares are undervalued.

United Fire Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, June 5th will be paid a $0.20 dividend. The ex-dividend date is Friday, June 5th. This represents a $0.80 dividend on an annualized basis and a yield of 1.8%. United Fire Group's dividend payout ratio (DPR) is currently 16.13%.

Analysts Set New Price Targets

Several research analysts have recently commented on UFCS shares. Wall Street Zen upgraded United Fire Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Zacks Research upgraded United Fire Group from a "hold" rating to a "strong-buy" rating in a report on Friday, May 8th. Piper Sandler lifted their target price on United Fire Group from $45.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. JonesTrading lifted their target price on United Fire Group from $40.00 to $45.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of United Fire Group in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the stock. According to data from MarketBeat, United Fire Group presently has an average rating of "Buy" and an average price target of $51.00.

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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