United Fire Group (NASDAQ:UFCS) Reaches New 52-Week High - Time to Buy?

Key Points

• 52-week high: United Fire Group (UFCS) reached a new 52-week high of $41.10 (last trade $41.07); the stock has a $1.06B market cap, a P/E of 9.25, and 50-/200-day moving averages of $38.20/$36.28.
• The insurer beat earnings estimates for the quarter with EPS of $1.50 vs. $0.90 expected and revenue of $365.8M vs. $332.3M, and analysts forecast about 3.65 EPS for the current year.
• Analyst views are mixed (two Buy, two Hold) giving a consensus "Moderate Buy" with an average price target of $40.50 (slightly below the current price); the company also raised its quarterly dividend to $0.20 (annualized $0.80, yield 1.9%).

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The stock traded as high as $41.10 and last traded at $41.07, with a volume of 9726 shares trading hands. The stock had previously closed at $40.47.

Wall Street Analysts Forecast Growth

Several brokerages have commented on UFCS. Zacks Research lowered shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Wall Street Zen lowered shares of United Fire Group from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. JonesTrading raised their target price on shares of United Fire Group from $38.00 to $40.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Weiss Ratings restated a "buy (b-)" rating on shares of United Fire Group in a research report on Monday, December 29th. Finally, Piper Sandler raised their target price on shares of United Fire Group from $37.00 to $41.00 and gave the stock a "neutral" rating in a research report on Thursday, February 12th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $40.50.

United Fire Group Trading Up 2.3%

The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 0.16. The company has a fifty day moving average of $38.20 and a two-hundred day moving average of $36.28. The stock has a market capitalization of $1.06 billion, a price-to-earnings ratio of 9.25 and a beta of 0.41.

United Fire Group (NASDAQ:UFCS - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The insurance provider reported $1.50 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.60. United Fire Group had a return on equity of 13.84% and a net margin of 8.52%.The firm had revenue of $365.81 million during the quarter, compared to the consensus estimate of $332.34 million. On average, research analysts expect that United Fire Group, Inc will post 3.65 EPS for the current year.

United Fire Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were issued a dividend of $0.20 per share. This is a boost from United Fire Group's previous quarterly dividend of $0.16. This represents a $0.80 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Tuesday, February 24th. United Fire Group's dividend payout ratio is 17.86%.

Insider Buying and Selling at United Fire Group

In related news, major shareholder Dee Ann Mcintyre sold 4,250 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $38.84, for a total transaction of $165,070.00. Following the completion of the sale, the insider directly owned 437,613 shares of the company's stock, valued at $16,996,888.92. This trade represents a 0.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Christopher R. Drahozal sold 4,250 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $38.49, for a total value of $163,582.50. Following the sale, the director directly owned 429,113 shares of the company's stock, valued at approximately $16,516,559.37. This represents a 0.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 12,750 shares of company stock valued at $493,723. Corporate insiders own 6.06% of the company's stock.

Institutional Investors Weigh In On United Fire Group

A number of hedge funds and other institutional investors have recently bought and sold shares of UFCS. Smartleaf Asset Management LLC lifted its holdings in United Fire Group by 129.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock valued at $25,000 after acquiring an additional 387 shares during the period. Basepoint Wealth LLC acquired a new stake in United Fire Group in the fourth quarter valued at $26,000. Federated Hermes Inc. lifted its holdings in United Fire Group by 109.5% in the fourth quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock valued at $43,000 after acquiring an additional 622 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in United Fire Group by 812.8% in the second quarter. EverSource Wealth Advisors LLC now owns 1,570 shares of the insurance provider's stock valued at $45,000 after acquiring an additional 1,398 shares during the period. Finally, Kemnay Advisory Services Inc. acquired a new stake in United Fire Group in the fourth quarter valued at $48,000. 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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