United Fire Group (NASDAQ:UFCS) Share Price Crosses Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• United Fire Group's share price crossed above its 200‑day moving average of $36.14, trading as high as $40.46 and last at $40.15 on volume of 102,787 shares.
• Analysts are mixed but the consensus rating is a Moderate Buy with an average price target of $40.50 after several recent upgrades and downgrades.
• The company beat quarterly estimates with EPS of $1.50 (vs. $0.90 expected) and $365.8M in revenue, and raised its quarterly dividend to $0.20 (annualized $0.80, ~2.0% yield).

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $36.14 and traded as high as $40.46. United Fire Group shares last traded at $40.15, with a volume of 102,787 shares changing hands.

Wall Street Analyst Weigh In

UFCS has been the topic of a number of recent analyst reports. JonesTrading raised their price target on shares of United Fire Group from $38.00 to $40.00 and gave the company a "buy" rating in a research report on Monday, March 2nd. 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. Weiss Ratings reissued a "buy (b-)" rating on shares of United Fire Group in a research report on Monday, December 29th. Zacks Research lowered shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 5th. Finally, Piper Sandler raised their price target on shares of United Fire Group from $37.00 to $41.00 and gave the company a "neutral" rating in a research report on Thursday, February 12th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $40.50.

United Fire Group Price Performance

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 business's 50-day moving average is $38.17 and its two-hundred day moving average is $36.14. The company has a market capitalization of $1.03 billion, a P/E ratio of 8.96 and a beta of 0.41.

United Fire Group (NASDAQ:UFCS - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The insurance provider reported $1.50 earnings per share for the quarter, beating analysts' consensus estimates of $0.90 by $0.60. United Fire Group had a net margin of 8.52% and a return on equity of 13.84%. The company had revenue of $365.81 million for the quarter, compared to analyst estimates of $332.34 million. As a group, analysts predict that United Fire Group, Inc will post 3.65 earnings per share for the current year.

United Fire Group Increases Dividend

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

Insider Activity

In other United Fire Group news, major shareholder Dee Ann Mcintyre sold 4,250 shares of United Fire Group 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 sale, the insider owned 437,613 shares of the company's stock, valued at approximately $16,996,888.92. The trade was a 0.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Christopher R. Drahozal sold 4,250 shares of United Fire Group stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $38.49, for a total transaction of $163,582.50. Following the completion of the sale, the director directly owned 429,113 shares in the company, valued at approximately $16,516,559.37. This represents a 0.98% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 12,750 shares of company stock worth $493,723. Insiders own 6.06% of the company's stock.

Institutional Trading of United Fire Group

Several hedge funds have recently added to or reduced their stakes in UFCS. Allianz Asset Management GmbH bought a new stake in United Fire Group in the third quarter worth about $5,940,000. Invesco Ltd. raised its position in United Fire Group by 108.8% in the second quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider's stock worth $9,959,000 after acquiring an additional 180,836 shares during the period. Royce & Associates LP raised its position in United Fire Group by 236.4% in the fourth quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider's stock worth $8,576,000 after acquiring an additional 165,789 shares during the period. AQR Capital Management LLC raised its position in United Fire Group by 59.5% in the second quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider's stock worth $8,641,000 after acquiring an additional 112,318 shares during the period. Finally, UBS Group AG raised its position in United Fire Group by 79.4% in the third quarter. UBS Group AG now owns 211,339 shares of the insurance provider's stock worth $6,429,000 after acquiring an additional 93,525 shares during the period. Institutional investors 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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