United Fire Group (NASDAQ:UFCS) Shares Cross Above 200 Day Moving Average - What's Next?

Key Points

• United Fire Group shares moved above their 200-day moving average, with the stock trading as high as $48.68 and last changing hands at $47.98, suggesting renewed momentum.
• Analyst sentiment is positive: multiple firms raised ratings or price targets, and MarketBeat reports a consensus Buy rating with an average target price of $51.00.
• The company also delivered solid fundamentals, including better-than-expected Q1 earnings and revenue, a quarterly dividend of $0.20 per share, and a newly authorized 2 million-share buyback.

Shares of United Fire Group, Inc (NASDAQ:UFCS - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $39.36 and traded as high as $48.68. United Fire Group shares last traded at $47.98, with a volume of 109,186 shares.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on UFCS shares. Zacks Research raised shares of United Fire Group from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 8th. Piper Sandler boosted their price target on United Fire Group from $45.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Wall Street Zen raised United Fire Group from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Weiss Ratings restated a "buy (b)" rating on shares of United Fire Group in a report on Wednesday, May 13th. Finally, JonesTrading lifted their target price on United Fire Group from $40.00 to $45.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. According to MarketBeat, United Fire Group currently has a consensus rating of "Buy" and an average target price of $51.00.

United Fire Group Stock Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.34 and a current ratio of 0.34. The firm has a market cap of $1.23 billion, a P/E ratio of 9.67 and a beta of 0.52. The firm's fifty day moving average price is $44.08 and its 200 day moving average price is $39.36.

United Fire Group (NASDAQ:UFCS - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.87 by $0.29. The firm had revenue of $369.44 million for the quarter, compared to the consensus estimate of $340.16 million. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. Sell-side analysts expect that United Fire Group, Inc will post 4.69 EPS for the current fiscal year.

United Fire Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Shareholders of record on Friday, June 5th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, June 5th. United Fire Group's dividend payout ratio (DPR) is 16.13%.

United Fire Group declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that authorizes the company to repurchase 2,000,000 outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its stock is undervalued.

Insider Activity at United Fire Group

In related news, Director George D. Milligan purchased 4,500 shares of United Fire Group stock in a transaction dated Friday, June 5th. The stock was purchased at an average cost of $45.23 per share, with a total value of $203,535.00. Following the transaction, the director owned 90,034 shares in the company, valued at approximately $4,072,237.82. The trade was a 5.26% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 6.06% of the company's stock.

Hedge Funds Weigh In On United Fire Group

Large investors have recently added to or reduced their stakes in the company. Invesco Ltd. lifted its position in shares of United Fire Group by 108.8% during the second quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider's stock valued at $9,959,000 after buying an additional 180,836 shares during the last quarter. Royce & Associates LP grew its position in shares of United Fire Group by 236.4% in the 4th quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider's stock worth $8,576,000 after buying an additional 165,789 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of United Fire Group by 59.5% during the 2nd 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 in the last quarter. UBS Group AG raised its stake in shares of United Fire Group by 79.4% during the 3rd 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 in the last quarter. Finally, First Trust Advisors LP purchased a new stake in United Fire Group during the third quarter valued at approximately $2,080,000. 62.68% of the stock is currently owned by institutional investors.

United Fire Group Company Profile

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.