United Fire Group (NASDAQ:UFCS) Releases Earnings Results, Beats Expectations By $0.29 EPS

Key Points

• United Fire Group reported quarterly EPS of $1.16, beating estimates by $0.29, and revenue of $369.44 million versus expectations of $340.16 million, with a net margin of 8.52% and ROE of 13.84%.
• The board raised the quarterly dividend to $0.20 (from $0.16), representing an $0.80 annualized payout and a ~2.0% yield with a payout ratio of 17.86%.
• Shares jumped to $39.85 on the news; the company has a market cap of $1.02 billion, a P/E of 8.90, and an average analyst rating of "Moderate Buy" with a $40.50 price target.

United Fire Group (NASDAQ:UFCS - Get Free Report) issued its earnings results on Tuesday. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.87 by $0.29, FiscalAI reports. The company had revenue of $369.44 million for the quarter, compared to analysts' expectations of $340.16 million. United Fire Group had a net margin of 8.52% and a return on equity of 13.84%.

United Fire Group Stock Performance

United Fire Group stock traded up $0.62 during trading hours on Tuesday, hitting $39.85. The company had a trading volume of 107,076 shares, compared to its average volume of 113,139. The firm has a market cap of $1.02 billion, a PE ratio of 8.90 and a beta of 0.50. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.33 and a quick ratio of 0.33. United Fire Group has a one year low of $25.79 and a one year high of $41.76. The firm has a 50-day moving average of $38.30 and a 200 day moving average of $36.48.

United Fire Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 24th were issued a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, February 24th. This represents a $0.80 annualized dividend and a yield of 2.0%. This is an increase from United Fire Group's previous quarterly dividend of $0.16. United Fire Group's payout ratio is currently 17.86%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on UFCS shares. Zacks Research cut shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a report on Monday, January 5th. Piper Sandler increased their price target on shares of United Fire Group from $37.00 to $41.00 and gave the company a "neutral" rating in a report on Thursday, February 12th. JonesTrading increased their price target on shares of United Fire Group from $38.00 to $40.00 and gave the company a "buy" rating in a report on Monday, March 2nd. Finally, Wall Street Zen cut shares of United Fire Group from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $40.50.

Insider Activity

In other United Fire Group news, major shareholder Dee Ann Mcintyre sold 4,250 shares of the stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $38.84, for a total value of $165,070.00. Following the transaction, the insider directly owned 437,613 shares of the company's stock, valued at $16,996,888.92. This represents a 0.96% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Christopher R. Drahozal sold 4,250 shares of the stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $38.49, for a total transaction of $163,582.50. Following the transaction, the director owned 429,113 shares in the company, valued at approximately $16,516,559.37. The trade was a 0.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 12,750 shares of company stock worth $493,723. Insiders own 6.06% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in UFCS. Royal Bank of Canada grew its position in shares of United Fire Group by 9.7% during the 1st quarter. Royal Bank of Canada now owns 117,441 shares of the insurance provider's stock worth $3,459,000 after purchasing an additional 10,346 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of United Fire Group by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,482 shares of the insurance provider's stock worth $368,000 after purchasing an additional 546 shares in the last quarter. Millennium Management LLC grew its position in shares of United Fire Group by 5.5% during the 1st quarter. Millennium Management LLC now owns 138,540 shares of the insurance provider's stock worth $4,081,000 after purchasing an additional 7,234 shares in the last quarter. NewEdge Advisors LLC grew its position in shares of United Fire Group by 17.7% during the 1st quarter. NewEdge Advisors LLC now owns 2,499 shares of the insurance provider's stock worth $74,000 after purchasing an additional 375 shares in the last quarter. Finally, Empowered Funds LLC grew its position in shares of United Fire Group by 29.5% during the 1st quarter. Empowered Funds LLC now owns 96,663 shares of the insurance provider's stock worth $2,848,000 after purchasing an additional 21,999 shares in the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.