United Fire Group (NASDAQ:UFCS) Reaches New 12-Month High - Should You Buy?

Key Points

• United Fire Group's stock reached a new 52-week high of $32.55, closing at $32.12, marking a notable gain in share price.
• Brokerages have upgraded the company, with Zacks Research assigning it a "strong-buy" rating and Jones Trading raising their target price to $33.00.
• The firm announced a quarterly dividend of $0.16 per share, representing an annualized dividend yield of 2.0% and a payout ratio of 18.23%.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report)'s stock price hit a new 52-week high during trading on Thursday . The stock traded as high as $32.55 and last traded at $32.12, with a volume of 25164 shares changing hands. The stock had previously closed at $31.67.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on UFCS. Jones Trading boosted their target price on shares of United Fire Group from $32.00 to $33.00 and gave the company a "buy" rating in a research report on Monday, August 11th. Zacks Research upgraded shares of United Fire Group to a "strong-buy" rating in a research report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $30.50.

United Fire Group Stock Down 0.7%

The stock's fifty day simple moving average is $29.59 and its two-hundred day simple moving average is $28.59. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.37 and a current ratio of 0.37. The stock has a market capitalization of $791.97 million, a P/E ratio of 8.85 and a beta of 0.56.

United Fire Group (NASDAQ:UFCS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The insurance provider reported $0.90 EPS for the quarter, beating analysts' consensus estimates of $0.57 by $0.33. United Fire Group had a net margin of 6.94% and a return on equity of 11.84%. The company had revenue of $314.80 million for the quarter, compared to analyst estimates of $337.99 million. As a group, research analysts expect that United Fire Group, Inc will post 2.42 EPS for the current fiscal year.

United Fire Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 12th. Investors of record on Friday, August 29th were paid a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, August 29th. This represents a $0.64 annualized dividend and a yield of 2.1%. United Fire Group's dividend payout ratio is currently 18.23%.

Insiders Place Their Bets

In other news, Director John Paul E. Besong sold 2,450 shares of the stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $32.26, for a total value of $79,037.00. Following the completion of the sale, the director owned 24,494 shares in the company, valued at $790,176.44. This represents a 9.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 6.12% of the company's stock.

Hedge Funds Weigh In On United Fire Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UFCS. Federated Hermes Inc. boosted its position in shares of United Fire Group by 131.3% in the first quarter. Federated Hermes Inc. now owns 1,115 shares of the insurance provider's stock valued at $33,000 after acquiring an additional 633 shares during the period. GAMMA Investing LLC increased its stake in shares of United Fire Group by 270.2% in the first quarter. GAMMA Investing LLC now owns 1,329 shares of the insurance provider's stock worth $39,000 after buying an additional 970 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of 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 worth $45,000 after buying an additional 1,398 shares during the period. Tower Research Capital LLC TRC boosted its holdings in United Fire Group by 301.2% in the second quarter. Tower Research Capital LLC TRC now owns 2,263 shares of the insurance provider's stock valued at $65,000 after acquiring an additional 1,699 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its holdings 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 valued at $74,000 after buying an additional 375 shares in the last quarter. Institutional investors own 62.68% of the company's stock.

About United Fire Group

United Fire Group, Inc, together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers' compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products.