United Fire Group (NASDAQ:UFCS) Posts Earnings Results, Beats Estimates By $0.61 EPS

Key Points

• United Fire Group reported quarterly EPS of $1.30, surpassing analysts’ consensus estimate of $0.69 by $0.61. The company posted a 14.65% return on equity and a 9.16% net margin.
• Shares rose to $52.09 following the results, near the company’s 12-month high of $54.42. Analysts maintain a “Moderate Buy” consensus rating with a $51.00 average price target.
• The board approved a 2 million-share buyback program, while the company continues paying a quarterly dividend of $0.20, equivalent to a 1.5% yield.

United Fire Group (NASDAQ:UFCS - Get Free Report) announced its quarterly earnings results on Monday. The insurance provider reported $1.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.61, FiscalAI reports. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%.

United Fire Group Stock Performance

Shares of United Fire Group stock traded up $0.73 on Monday, reaching $52.09. 202,732 shares of the stock were exchanged, compared to its average volume of 131,636. The business has a 50 day moving average price of $49.43 and a two-hundred day moving average price of $42.76. The firm has a market capitalization of $1.34 billion, a price-to-earnings ratio of 10.50 and a beta of 0.51. United Fire Group has a twelve month low of $26.10 and a twelve month high of $54.42. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.15.

United Fire Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Friday, June 5th. United Fire Group's dividend payout ratio (DPR) is presently 16.13%.

United Fire Group announced that its board has approved a share buyback program on Wednesday, May 20th that permits the company to buyback 2,000,000 shares. This buyback authorization permits the insurance provider to buy shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of United Fire Group in a research note on Wednesday, May 13th. Wall Street Zen lowered shares of United Fire Group from a "strong-buy" rating to a "buy" rating in a report on Sunday. 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 report on Thursday, May 7th. Zacks Research lowered United Fire Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Finally, Piper Sandler boosted their target price 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. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $51.00.

Insiders Place Their Bets

In other United Fire Group news, Director George D. Milligan purchased 4,500 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were bought at an average price of $45.23 per share, for a total transaction of $203,535.00. Following the acquisition, the director owned 90,034 shares in the company, valued at $4,072,237.82. This represents a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 6.06% of the company's stock.

Institutional Trading of United Fire Group

A number of hedge funds and other institutional investors have recently made changes to their positions in UFCS. Smartleaf Asset Management LLC lifted its position in United Fire Group by 129.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock valued at $25,000 after purchasing an additional 387 shares during the period. Federated Hermes Inc. grew its position in United Fire Group by 109.5% during the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock worth $43,000 after purchasing an additional 622 shares during the period. EverSource Wealth Advisors LLC raised its stake 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 valued at $45,000 after buying an additional 1,398 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new position in shares of United Fire Group in the 4th quarter valued at about $48,000. Finally, Meeder Asset Management Inc. acquired a new position in shares of United Fire Group in the 4th quarter valued at about $53,000. Institutional investors and hedge funds own 62.68% of the company's stock.

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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