Short Interest in United Fire Group, Inc (NASDAQ:UFCS) Rises By 8,066.7%

Key Points

• United Fire Group, Inc (NASDAQ:UFCS) experienced a dramatic increase in short interest, rising by 8,066.7% in July to a total of 343,000 shares.
• Institutional investors have significantly increased their holdings, with 62.68% of the company's stock now owned by these entities, highlighting strong confidence in the company's future.
• The company announced a quarterly dividend of $0.16 per share, reflecting an annualized yield of 2.4% and a payout ratio of 25.30%.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) saw a large growth in short interest during the month of July. As of July 15th, there was short interest totaling 343,000 shares, agrowthof8,066.7% from the June 30th total of 4,200 shares. Based on an average daily trading volume, of 113,100 shares, the days-to-cover ratio is presently 3.0 days. Currently,1.6% of the company's shares are sold short. Currently,1.6% of the company's shares are sold short. Based on an average daily trading volume, of 113,100 shares, the days-to-cover ratio is presently 3.0 days.

United Fire Group Stock Performance

Shares of NASDAQ UFCS traded up $0.02 during trading on Tuesday, reaching $26.68. 20,138 shares of the company traded hands, compared to its average volume of 125,220. The firm has a 50 day simple moving average of $27.88 and a 200-day simple moving average of $27.50. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $679.06 million, a PE ratio of 10.56 and a beta of 0.53. United Fire Group has a 52-week low of $18.04 and a 52-week high of $31.70.

United Fire Group (NASDAQ:UFCS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 6th. The insurance provider reported $0.70 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.08. United Fire Group had a net margin of 5.13% and a return on equity of 9.01%. The firm had revenue of $308.41 million for the quarter, compared to analysts' expectations of $336.18 million. Equities research analysts anticipate that United Fire Group will post 2.42 earnings per share for the current year.

United Fire Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 20th. Shareholders of record on Friday, June 6th were paid a dividend of $0.16 per share. The ex-dividend date was Friday, June 6th. This represents a $0.64 dividend on an annualized basis and a yield of 2.4%. United Fire Group's dividend payout ratio (DPR) is presently 25.30%.

Analysts Set New Price Targets

A number of research firms recently commented on UFCS. Wall Street Zen upgraded shares of United Fire Group from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 15th. Jones Trading restated a "buy" rating and issued a $32.00 price objective on shares of United Fire Group in a report on Monday, May 12th.

Institutional Investors Weigh In On United Fire Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UFCS. Teacher Retirement System of Texas grew its holdings in United Fire Group by 10.3% during the 2nd quarter. Teacher Retirement System of Texas now owns 62,794 shares of the insurance provider's stock valued at $1,802,000 after buying an additional 5,875 shares in the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in United Fire Group during the 2nd quarter valued at approximately $1,589,000. AlphaQuest LLC purchased a new stake in United Fire Group during the 2nd quarter valued at approximately $178,000. R Squared Ltd purchased a new stake in United Fire Group during the 2nd quarter valued at approximately $225,000. Finally, New York State Teachers Retirement System grew its holdings in United Fire Group by 11.6% during the 2nd quarter. New York State Teachers Retirement System now owns 39,114 shares of the insurance provider's stock valued at $1,123,000 after buying an additional 4,058 shares in the last quarter. Institutional investors own 62.68% of the company's stock.

About United Fire Group

United Fire Group, Inc, together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers' compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products.