United Fire Group (NASDAQ:UFCS) Sets New 52-Week High Following Earnings Beat

Key Points

• United Fire Group shares hit a new 52-week high of $54.63 after the insurer reported quarterly EPS of $1.30, well above the $0.69 consensus estimate, and revenue of $383.73 million versus expectations of $347.76 million.
• The company declared a quarterly dividend of $0.20 per share, equivalent to an annualized $0.80 dividend and a 1.5% yield, while its board authorized repurchases of up to 2 million shares.
• Analyst sentiment remains favorable but mixed, with three Buy ratings and one Hold rating producing a “Moderate Buy” consensus and a $51 average price target; institutional investors own 62.68% of the stock.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $54.63 and last traded at $52.6480, with a volume of 17302 shares traded. The stock had previously closed at $52.09.

The insurance provider reported $1.30 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.61. The firm had revenue of $383.73 million during the quarter, compared to the consensus estimate of $347.76 million. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%.

United Fire Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were given a dividend of $0.20 per share. The ex-dividend date was Friday, June 5th. This represents a $0.80 dividend on an annualized basis and a yield of 1.5%. United Fire Group's dividend payout ratio (DPR) is 16.13%.

United Fire Group announced that its board has approved a stock buyback program on Wednesday, May 20th that permits the company to repurchase 2,000,000 shares. This repurchase authorization permits the insurance provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Weiss Ratings reissued a "buy (b)" rating on shares of United Fire Group in a research note on Wednesday, May 13th. Zacks Research downgraded United Fire Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Piper Sandler upped their target price 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. JonesTrading increased their target price 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. Finally, Wall Street Zen lowered United Fire Group from a "strong-buy" rating to a "buy" rating in a research note on Sunday. Three analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $51.00.

Insiders Place Their Bets

In related news, Director George D. Milligan purchased 4,500 shares of the firm's stock in a transaction on Friday, June 5th. The shares were bought at an average price of $45.23 per share, for a total transaction of $203,535.00. Following the acquisition, the director directly owned 90,034 shares in the company, valued at $4,072,237.82. This trade represents a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this link. 6.06% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in UFCS. Royal Bank of Canada increased its stake in United Fire Group by 9.7% during the first quarter. Royal Bank of Canada now owns 117,441 shares of the insurance provider's stock worth $3,459,000 after acquiring an additional 10,346 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of United Fire Group by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,482 shares of the insurance provider's stock valued at $368,000 after purchasing an additional 546 shares in the last quarter. Millennium Management LLC grew its holdings 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 during the period. NewEdge Advisors LLC grew 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 worth $74,000 after purchasing an additional 375 shares during the period. Finally, Empowered Funds LLC increased its position in 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.

United Fire Group Stock Performance

The stock's 50-day moving average is $49.53 and its 200-day moving average is $42.88. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15. The stock has a market cap of $1.39 billion, a price-to-earnings ratio of 10.91 and a beta of 0.50.

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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