Hsbc Holdings PLC Has $364,000 Stake in United Fire Group, Inc $UFCS

Key Points

• HSBC Holdings PLC cut its stake in United Fire Group by 69% in the fourth quarter, though it still held 10,003 shares worth about $364,000.
• United Fire Group reported better-than-expected quarterly earnings, posting $1.16 EPS versus the $0.87 consensus and revenue of $369.44 million, while also authorizing a 2 million-share buyback.
• The stock has attracted a mixed but generally positive analyst view, with an overall Moderate Buy rating and an average price target of $51; shares recently traded around $51.09, near the 52-week high.

Hsbc Holdings PLC trimmed its position in United Fire Group, Inc (NASDAQ:UFCS - Free Report) by 69.0% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 10,003 shares of the insurance provider's stock after selling 22,296 shares during the period. Hsbc Holdings PLC's holdings in United Fire Group were worth $364,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Smartleaf Asset Management LLC grew its stake in United Fire Group by 129.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock valued at $25,000 after acquiring an additional 387 shares during the period. Basepoint Wealth LLC acquired a new stake in shares of United Fire Group during the fourth quarter worth about $26,000. Federated Hermes Inc. lifted its holdings in shares of United Fire Group by 109.5% during the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 622 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of United Fire Group by 812.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,570 shares of the insurance provider's stock valued at $45,000 after purchasing an additional 1,398 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in United Fire Group during the 4th quarter worth approximately $48,000. Institutional investors own 62.68% of the company's stock.

Insider Buying and Selling at United Fire Group

In other United Fire Group news, Director George D. Milligan bought 4,500 shares of the business's stock in a transaction on Friday, June 5th. The stock was purchased at an average cost 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 of the company's stock, valued at approximately $4,072,237.82. This trade represents a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 6.06% of the company's stock.

United Fire Group Trading Up 2.2%

UFCS stock opened at $51.09 on Friday. United Fire Group, Inc has a one year low of $25.79 and a one year high of $54.42. The stock has a market cap of $1.31 billion, a price-to-earnings ratio of 10.30 and a beta of 0.50. The company has a fifty day moving average price of $48.84 and a two-hundred day moving average price of $41.65. 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 (NASDAQ:UFCS - Get Free Report) last posted its earnings results on Tuesday, May 5th. The insurance provider reported $1.16 EPS for the quarter, beating the consensus estimate of $0.87 by $0.29. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%.The company had revenue of $369.44 million for the quarter, compared to the consensus estimate of $340.15 million. Equities analysts anticipate that United Fire Group, Inc will post 4.69 EPS for the current year.

United Fire Group declared that its Board of Directors has initiated a stock repurchase program 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. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

United Fire Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, June 5th. United Fire Group's dividend payout ratio is 16.13%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Wall Street Zen raised shares of United Fire Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of United Fire Group in a research note on Wednesday, May 13th. Zacks Research cut United Fire Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Piper Sandler boosted their price target on United Fire Group from $45.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Finally, JonesTrading upped their price objective on United Fire Group from $40.00 to $45.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, United Fire Group has a consensus rating of "Moderate Buy" and an average price target of $51.00.

United Fire Group 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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