United Fire Group (NASDAQ:UFCS) Stock Jumps 5.6% Following Insider Buying Activity

Key Points

• United Fire Group shares rose 5.6% after director George Milligan bought 5,000 shares for $237,050, increasing his direct ownership by 5.55%.
• The insurer beat quarterly expectations, reporting EPS of $1.34 versus the $1.23 consensus and revenue of $391.63 million versus estimates of $384.18 million.
• Analyst sentiment is mixed, though the consensus rating remains “Buy” with a $51.50 target price; recent downgrades included moves to “Hold” and a reduction in Piper Sandler’s target to $58.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) shot up 5.6% on Tuesday following insider buying activity. The company traded as high as $51.58 and last traded at $51.6310. 37,312 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 134,319 shares. The stock had previously closed at $48.87.

Specifically, Director George Milligan purchased 5,000 shares of the business's stock in a transaction on Friday, November 6th. The shares were bought at an average price of $47.41 per share, for a total transaction of $237,050.00. Following the acquisition, the director directly owned 95,034 shares in the company, valued at $4,505,561.94. This trade represents a 5.55% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Wall Street Zen downgraded United Fire Group from a "buy" rating to a "hold" rating in a report on Saturday. Piper Sandler dropped their price objective on United Fire Group from $60.00 to $58.00 and set an "overweight" rating on the stock in a report on Thursday, November 5th. Zacks Research lowered United Fire Group from a "strong-buy" rating to a "hold" rating in a research report on Friday. Finally, Weiss Ratings cut United Fire Group from a "buy (a)" rating to a "buy (a-)" rating in a research note on Wednesday, November 4th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $51.50.

United Fire Group Price Performance

The company has a market cap of $1.33 billion, a price-to-earnings ratio of 9.85 and a beta of 0.55. The company's 50 day moving average price is $54.71 and its 200 day moving average price is $47.04. 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 posted its quarterly earnings results on Tuesday, November 3rd. The insurance provider reported $1.34 earnings per share for the quarter, topping analysts' consensus estimates of $1.23 by $0.11. United Fire Group had a net margin of 9.06% and a return on equity of 14.50%. The business had revenue of $391.63 million for the quarter, compared to analysts' expectations of $384.18 million. Equities research analysts forecast that United Fire Group, Inc will post 5.07 earnings per share for the current year.

United Fire Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 1.5%. The ex-dividend date was Friday, September 4th. United Fire Group's dividend payout ratio is presently 15.30%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of UFCS. Globeflex Capital L P acquired a new stake in shares of United Fire Group during the second quarter worth approximately $2,301,000. Legal & General Group Plc bought a new stake in shares of United Fire Group in the second quarter worth $2,679,000. Man Group plc bought a new stake in shares of United Fire Group in the second quarter worth $1,943,000. GSA Capital Partners LLP acquired a new stake in United Fire Group in the second quarter valued at $1,677,000. Finally, Empowered Funds LLC acquired a new stake in United Fire Group in the second quarter valued at $5,935,000. Institutional investors and hedge funds own 62.68% of the company's stock.

About United Fire Group

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