Los Angeles Capital Management LLC Increases Position in United Fire Group, Inc $UFCS

Key Points

• Los Angeles Capital Management more than doubled its stake in United Fire Group in the fourth quarter, increasing holdings by 111% to 57,647 shares worth about $2.1 million.
• Analysts have turned more bullish on UFCS, with several upgrades and higher price targets; the stock now has a consensus Buy rating and an average target price of $51.
• The company reported strong quarterly results, beating earnings and revenue expectations, while also announcing a quarterly dividend and a new 2 million-share buyback program.

Los Angeles Capital Management LLC boosted its holdings in shares of United Fire Group, Inc (NASDAQ:UFCS - Free Report) by 111.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 57,647 shares of the insurance provider's stock after acquiring an additional 30,328 shares during the period. Los Angeles Capital Management LLC owned 0.23% of United Fire Group worth $2,095,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the company. Basepoint Wealth LLC acquired a new stake in shares of United Fire Group during the 4th quarter worth approximately $26,000. EverSource Wealth Advisors LLC increased 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 worth $45,000 after buying an additional 1,398 shares during the last quarter. GAMMA Investing LLC increased its holdings in shares of United Fire Group by 19.8% during the 4th quarter. GAMMA Investing LLC now owns 1,743 shares of the insurance provider's stock worth $63,000 after buying an additional 288 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in shares of United Fire Group by 301.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,263 shares of the insurance provider's stock worth $65,000 after buying an additional 1,699 shares during the last quarter. Finally, NewEdge Advisors LLC increased its holdings in shares of United Fire Group by 17.7% during the 1st quarter. NewEdge Advisors LLC now owns 2,499 shares of the insurance provider's stock worth $74,000 after buying an additional 375 shares during the last quarter. Hedge funds and other institutional investors own 62.68% of the company's stock.

Analysts Set New Price Targets

UFCS has been the subject of a number of recent analyst reports. Wall Street Zen upgraded shares of United Fire Group from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Weiss Ratings restated a "buy (b)" rating on shares of United Fire Group in a report on Wednesday, May 13th. Piper Sandler raised their price target on shares of United Fire Group from $45.00 to $57.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. Zacks Research upgraded shares of United Fire Group from a "hold" rating to a "strong-buy" rating in a report on Friday, May 8th. Finally, JonesTrading raised their price target on shares of United Fire Group from $40.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. Based on data from MarketBeat.com, United Fire Group currently has an average rating of "Buy" and a consensus target price of $51.00.

Insider Activity

In related news, Director George D. Milligan acquired 4,500 shares of United Fire Group stock in a transaction dated 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 completion of the purchase, the director owned 90,034 shares in the company, valued at approximately $4,072,237.82. The trade was a 5.26% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 6.06% of the company's stock.

United Fire Group Stock Up 2.4%

United Fire Group stock opened at $46.32 on Wednesday. United Fire Group, Inc has a fifty-two week low of $25.79 and a fifty-two week high of $49.94. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.34 and a current ratio of 0.34. The firm has a 50 day moving average price of $42.79 and a 200 day moving average price of $38.89. The company has a market capitalization of $1.19 billion, a PE ratio of 9.34 and a beta of 0.52.

United Fire Group (NASDAQ:UFCS - Get Free Report) last posted its earnings results on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share for the quarter, beating the consensus estimate of $0.87 by $0.29. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. The firm had revenue of $369.44 million during the quarter, compared to the consensus estimate of $340.16 million. Research analysts expect that United Fire Group, Inc will post 4.69 earnings per share for the current year.

United Fire Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Friday, June 5th. United Fire Group's dividend payout ratio (DPR) is presently 16.13%.

United Fire Group announced that its board has authorized a share buyback program on Wednesday, May 20th that permits the company to buyback 2,000,000 outstanding shares. This buyback authorization permits 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 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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