UBS Group AG Trims Stock Holdings in United Fire Group, Inc $UFCS

Key Points

• UBS Group AG cut its stake in United Fire Group by 45.4% in the fourth quarter, selling 95,901 shares and leaving it with 115,438 shares worth about $4.2 million.
• United Fire Group reported better-than-expected Q1 earnings, posting $1.16 EPS versus the $0.87 consensus estimate, on revenue of $369.44 million. Analysts now expect full-year EPS of 4.88.
• The company announced a quarterly dividend of $0.20 per share and approved a 2 million-share buyback program, while analysts have been turning more bullish with a consensus rating of Buy.

UBS Group AG lowered its position in United Fire Group, Inc (NASDAQ:UFCS - Free Report) by 45.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 115,438 shares of the insurance provider's stock after selling 95,901 shares during the quarter. UBS Group AG owned approximately 0.45% of United Fire Group worth $4,196,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in UFCS. Allianz Asset Management GmbH purchased a new stake in shares of United Fire Group during the third quarter worth approximately $5,940,000. Hillsdale Investment Management Inc. raised its stake in shares of United Fire Group by 16.0% during the third quarter. Hillsdale Investment Management Inc. now owns 227,268 shares of the insurance provider's stock worth $6,913,000 after purchasing an additional 31,400 shares during the last quarter. Royce & Associates LP purchased a new stake in shares of United Fire Group during the third quarter worth approximately $2,134,000. LSV Asset Management raised its stake in shares of United Fire Group by 166.7% during the third quarter. LSV Asset Management now owns 95,000 shares of the insurance provider's stock worth $2,890,000 after purchasing an additional 59,384 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake 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 purchasing an additional 35,338 shares during the last quarter. Hedge funds and other institutional investors own 62.68% of the company's stock.

United Fire Group Trading Down 2.0%

NASDAQ:UFCS opened at $47.17 on Friday. The stock has a fifty day moving average price of $40.87 and a two-hundred day moving average price of $38.06. The stock has a market capitalization of $1.21 billion, a price-to-earnings ratio of 9.51 and a beta of 0.50. 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 1 year low of $25.79 and a 1 year high of $49.94.

United Fire Group (NASDAQ:UFCS - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.29. The firm had revenue of $369.44 million during the quarter, compared to analysts' expectations of $340.16 million. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%. As a group, sell-side analysts anticipate that United Fire Group, Inc will post 4.88 earnings per share for the current fiscal year.

United Fire Group Announces Dividend

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

United Fire Group announced that its board has authorized a stock buyback plan on Wednesday, May 20th that permits the company to repurchase 2,000,000 outstanding shares. This repurchase authorization permits the insurance provider to reacquire shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

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

Insider Buying and Selling at United Fire Group

In other United Fire Group news, Director Christopher R. Drahozal sold 4,250 shares of the 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 completion of the transaction, the director owned 429,113 shares in the company, valued at approximately $16,516,559.37. This represents a 0.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Dee Ann Mcintyre sold 4,250 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $38.84, for a total value of $165,070.00. Following the completion of the transaction, the insider owned 437,613 shares of the company's stock, valued at $16,996,888.92. The trade was a 0.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 12,750 shares of company stock valued at $493,723 in the last quarter. 6.06% of the stock is currently owned by company insiders.

About United Fire Group

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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