United Fire Group (NASDAQ:UFCS) Sets New 1-Year High Following Better-Than-Expected Earnings

Key Points

• United Fire Group shares hit a new 52-week high (intraday $44.86) after reporting quarterly EPS of $1.16 versus $0.87 expected and revenue of $369.4M vs. $340.2M, driving a roughly 9.5% intraday gain.
• The company raised its quarterly dividend to $0.20 (annualized $0.80), implying a 1.8% yield and a low dividend payout ratio of about 17.9%.
• Insiders have sold 12,750 shares (~$493,723) in the past 90 days while analysts maintain a mildly positive stance—consensus "Moderate Buy" with an average price target of $42.50.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $44.86 and last traded at $43.4940, with a volume of 11722 shares changing hands. The stock had previously closed at $39.85.

The insurance provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.87 by $0.29. The business had revenue of $369.44 million for the quarter, compared to analyst estimates 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 Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 24th were paid a $0.20 dividend. This is a boost from United Fire Group's previous quarterly dividend of $0.16. The ex-dividend date was Tuesday, February 24th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.8%. United Fire Group's dividend payout ratio (DPR) is currently 17.86%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on UFCS shares. Wall Street Zen lowered shares of United Fire Group from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. JonesTrading upped their target price on shares of United Fire Group from $38.00 to $40.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Finally, Piper Sandler upgraded shares of United Fire Group from a "neutral" rating to an "overweight" rating and set a $45.00 target price on the stock in a research note on Wednesday. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, United Fire Group has an average rating of "Moderate Buy" and an average price target of $42.50.

Insider Transactions at United Fire Group

In related news, Director Christopher R. Drahozal sold 4,250 shares of the business's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $38.49, for a total transaction of $163,582.50. Following the completion of the sale, the director owned 429,113 shares of the company's stock, valued at $16,516,559.37. This represents a 0.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Dee Ann Mcintyre sold 4,250 shares of the business's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $38.84, for a total transaction of $165,070.00. Following the sale, the insider directly owned 437,613 shares of the company's stock, valued at approximately $16,996,888.92. This represents a 0.96% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 12,750 shares of company stock valued at $493,723. Insiders own 6.06% of the company's stock.

Institutional Investors Weigh In On United Fire Group

Institutional investors have recently modified their holdings of the business. Smartleaf Asset Management LLC grew its position in shares of United Fire Group by 129.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock valued at $25,000 after buying an additional 387 shares during the last quarter. Basepoint Wealth LLC bought a new stake in shares of United Fire Group during the 4th quarter valued at about $26,000. Federated Hermes Inc. grew its position in shares of United Fire Group by 109.5% during the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock valued at $43,000 after buying an additional 622 shares during the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of United Fire Group during the 4th quarter valued at about $48,000. Finally, Meeder Asset Management Inc. bought a new position in United Fire Group in the 4th quarter worth about $53,000. Institutional investors own 62.68% of the company's stock.

United Fire Group Trading Up 9.5%

The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.16. The stock has a market cap of $1.12 billion, a P/E ratio of 9.72 and a beta of 0.50. The firm's 50-day simple moving average is $38.33 and its 200 day simple moving average is $36.55.

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.