United Fire Group (NASDAQ:UFCS) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• United Fire Group's shares rose significantly from $26.80 to $30.00 after reporting an earnings per share (EPS) of $0.90, exceeding expectations by $0.33.
• The company declared a quarterly dividend of $0.16, representing a 2.3% yield and a payout ratio of 25.30%.
• Research analysts have shown positive sentiment, with several firms upgrading ratings and target prices for United Fire Group's stock, indicating potential growth prospects.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report)'s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $26.80, but opened at $30.00. United Fire Group shares last traded at $28.15, with a volume of 13,344 shares changing hands.

The insurance provider reported $0.90 EPS for the quarter, beating analysts' consensus estimates of $0.57 by $0.33. The firm had revenue of $314.80 million for the quarter, compared to analyst estimates of $337.99 million. United Fire Group had a net margin of 6.94% and a return on equity of 12.02%.

United Fire Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 20th. Investors of record on Friday, June 6th were issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, June 6th. United Fire Group's dividend payout ratio (DPR) is currently 18.23%.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. Jones Trading reissued a "buy" rating and issued a $32.00 price objective on shares of United Fire Group in a research note on Monday, May 12th. Wall Street Zen raised United Fire Group from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 15th.

Institutional Trading of United Fire Group

Several hedge funds have recently modified their holdings of the stock. Federated Hermes Inc. lifted its holdings in United Fire Group by 131.3% during the 1st quarter. Federated Hermes Inc. now owns 1,115 shares of the insurance provider's stock worth $33,000 after buying an additional 633 shares in the last quarter. GAMMA Investing LLC raised its position in shares of United Fire Group by 270.2% during the first quarter. GAMMA Investing LLC now owns 1,329 shares of the insurance provider's stock worth $39,000 after acquiring an additional 970 shares during the last quarter. NewEdge Advisors LLC acquired a new position in shares of United Fire Group during the fourth quarter valued at $60,000. Aquatic Capital Management LLC boosted its holdings in United Fire Group by 716.3% in the fourth quarter. Aquatic Capital Management LLC now owns 2,449 shares of the insurance provider's stock valued at $70,000 after acquiring an additional 2,149 shares during the last quarter. Finally, KLP Kapitalforvaltning AS bought a new position in United Fire Group in the fourth quarter valued at about $131,000. 62.68% of the stock is owned by institutional investors.

United Fire Group Stock Performance

The stock has a market capitalization of $747.37 million, a price-to-earnings ratio of 8.37 and a beta of 0.53. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.34 and a quick ratio of 0.34. The stock has a 50-day moving average of $27.86 and a 200 day moving average of $27.52.

United Fire Group Company Profile

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.