United Fire Group (NASDAQ:UFCS) Reaches New 1-Year High - Should You Buy?

Key Points

• United Fire Group reached a new 52-week high of $56.98, with the stock recently trading around $56.07 and a market capitalization of approximately $1.44 billion.
• Analysts remain broadly bullish: UFCS has an average “Strong Buy” rating and a consensus price target of $52.50, although the stock is currently trading above that target.
• The company exceeded quarterly earnings expectations, reporting $1.30 in EPS versus the $0.69 consensus estimate, and pays a quarterly dividend of $0.20, yielding about 1.4% annually.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) reached a new 52-week high on Tuesday. The company traded as high as $56.98 and last traded at $56.0730, with a volume of 5,805 shares. The stock had previously closed at $56.00.

Wall Street Analyst Weigh In

A number of analysts recently commented on UFCS shares. Wall Street Zen lowered United Fire Group from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 2nd. Piper Sandler lifted their price objective on United Fire Group from $57.00 to $60.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. Zacks Research raised shares of United Fire Group from a "hold" rating to a "strong-buy" rating in a research note on Thursday, September 17th. Finally, Weiss Ratings upgraded shares of United Fire Group from a "buy (a-)" rating to a "buy (a)" rating in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Strong Buy" and a consensus target price of $52.50.

United Fire Group Stock Performance

The stock has a market cap of $1.44 billion, a price-to-earnings ratio of 10.44 and a beta of 0.47. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.34 and a quick ratio of 0.34. The stock's 50-day moving average is $54.25 and its 200-day moving average is $48.92.

United Fire Group (NASDAQ:UFCS - Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The insurance provider reported $1.30 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.61. United Fire Group had a return on equity of 15.19% and a net margin of 9.57%. The company had revenue of $383.73 million during the quarter, compared to the consensus estimate of $347.76 million. Analysts anticipate that United Fire Group, Inc will post 4.97 EPS for the current fiscal year.

United Fire Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Stockholders of record on Friday, September 4th were given a $0.20 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.4%. United Fire Group's payout ratio is currently 14.87%.

Insider Buying and Selling

In related news, Director Scott Carlton sold 9,777 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $55.52, for a total value of $542,819.04. Following the completion of the transaction, the director directly owned 200,552 shares in the company, valued at approximately $11,134,647.04. This represents a 4.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 6.06% of the company's stock.

Institutional Trading of United Fire Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP acquired a new position in shares of United Fire Group during the 2nd quarter valued at about $34,000. C M Bidwell & Associates Ltd. purchased a new position in shares of United Fire Group during the 2nd quarter worth about $66,000. Integrated Wealth Concepts LLC acquired a new stake in shares of United Fire Group in the second quarter worth approximately $69,000. IFP Advisors Inc boosted its position in shares of United Fire Group by 25.1% in the second quarter. IFP Advisors Inc now owns 1,400 shares of the insurance provider's stock worth $73,000 after acquiring an additional 281 shares during the last quarter. Finally, Meeder Asset Management Inc. acquired a new stake in shares of United Fire Group in the second quarter worth approximately $77,000. Hedge funds and other institutional investors own 62.68% of the company's stock.

About United Fire Group

United Fire Group, Inc NASDAQ: UFCS is an insurance holding company headquartered in Cedar Rapids, Iowa. Through its subsidiaries, the company provides property and casualty insurance products to businesses and individuals, primarily through a network of independent insurance agents.

United Fire Group offers commercial insurance covering areas such as commercial property, general liability, commercial automobile, workers' compensation and surety bonds. Its personal insurance products include automobile and homeowners coverage.

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