United Fire Group (NASDAQ:UFCS) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded United Fire Group from “buy” to “strong-buy,” adding to a mixed but generally positive analyst backdrop. The stock now has a consensus rating of “Moderate Buy” with an average target price of $51.00.
• United Fire Group reported better-than-expected quarterly results, with EPS of $1.16 versus estimates of $0.87 and revenue of $369.44 million versus expectations of $340.15 million. The company also posted a 9.16% net margin and 14.65% return on equity.
• The company authorized a 2 million share buyback program, which management often uses to signal confidence that shares are undervalued. Insider and institutional activity also appears supportive, including a director purchase and heavy hedge fund ownership.

United Fire Group (NASDAQ:UFCS - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued to clients and investors on Saturday.

UFCS has been the topic of a number of other research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of United Fire Group in a research report on Wednesday, May 13th. JonesTrading lifted their price objective 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. Piper Sandler boosted their price objective on United Fire Group from $45.00 to $57.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Finally, Zacks Research lowered United Fire Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $51.00.

United Fire Group Stock Up 3.9%

Shares of NASDAQ UFCS opened at $51.33 on Friday. The company has a market capitalization of $1.32 billion, a P/E ratio of 10.35 and a beta of 0.50. United Fire Group has a 52-week low of $25.79 and a 52-week high of $54.42. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.34 and a current ratio of 0.34. The company's 50 day moving average price is $49.05 and its 200-day moving average price is $42.15.

United Fire Group (NASDAQ:UFCS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $0.87 by $0.29. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. The company had revenue of $369.44 million for the quarter, compared to analyst estimates of $340.15 million. Equities analysts forecast that United Fire Group will post 4.69 earnings per share for the current year.

United Fire Group declared that its Board of Directors has initiated a stock buyback program on Wednesday, May 20th that authorizes the company to buyback 2,000,000 outstanding shares. This buyback authorization authorizes the insurance provider to purchase shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at United Fire Group

In related news, Director George D. Milligan purchased 4,500 shares of United Fire Group stock in a transaction on Friday, June 5th. The stock was acquired at an average cost of $45.23 per share, for a total transaction of $203,535.00. Following the completion of the acquisition, the director owned 90,034 shares of the company's stock, valued at $4,072,237.82. This trade represents a 5.26% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. 6.06% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On United Fire Group

Several institutional investors have recently made changes to their positions in UFCS. Invesco Ltd. boosted its position in shares of United Fire Group by 108.8% during the 2nd quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider's stock worth $9,959,000 after purchasing an additional 180,836 shares in the last quarter. Royce & Associates LP increased its position in United Fire Group by 236.4% in the 4th quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider's stock valued at $8,576,000 after buying an additional 165,789 shares in the last quarter. AQR Capital Management LLC raised its stake in United Fire Group by 59.5% during the 2nd quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider's stock worth $8,641,000 after buying an additional 112,318 shares during the period. UBS Group AG boosted its holdings in United Fire Group by 79.4% in the third quarter. UBS Group AG now owns 211,339 shares of the insurance provider's stock worth $6,429,000 after acquiring an additional 93,525 shares in the last quarter. Finally, First Trust Advisors LP bought a new position in United Fire Group in the third quarter worth approximately $2,080,000. Institutional investors and hedge funds own 62.68% of the company's stock.

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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