United Fire Group (NASDAQ:UFCS) Shares Gap Up on Strong 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) 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.

The insurance provider reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.57 by $0.33. United Fire Group had a return on equity of 11.84% and a net margin of 6.94%. The business had revenue of $314.80 million for the quarter, compared to analyst estimates of $337.99 million.

United Fire Group Announces Dividend

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

Wall Street Analyst Weigh In

Several brokerages have recently commented on UFCS. Jones Trading restated a "buy" rating and set a $32.00 price target on shares of United Fire Group in a research note on Monday, May 12th. Wall Street Zen upgraded United Fire Group from a "buy" rating to a "strong-buy" rating in a research note on Thursday, May 15th.

Institutional Investors Weigh In On United Fire Group

A number of institutional investors have recently added to or reduced their stakes in UFCS. Federated Hermes Inc. boosted its position in United Fire Group by 131.3% during the first quarter. Federated Hermes Inc. now owns 1,115 shares of the insurance provider's stock valued at $33,000 after purchasing an additional 633 shares in the last quarter. GAMMA Investing LLC boosted its position in United Fire Group by 270.2% during the first quarter. GAMMA Investing LLC now owns 1,329 shares of the insurance provider's stock valued at $39,000 after purchasing an additional 970 shares in the last quarter. NewEdge Advisors LLC bought a new stake in United Fire Group during the fourth quarter valued at about $60,000. Aquatic Capital Management LLC boosted its position in United Fire Group by 716.3% during the fourth quarter. Aquatic Capital Management LLC now owns 2,449 shares of the insurance provider's stock valued at $70,000 after purchasing an additional 2,149 shares in the last quarter. Finally, Farther Finance Advisors LLC boosted its position in United Fire Group by 1,241.8% during the first quarter. Farther Finance Advisors LLC now owns 4,428 shares of the insurance provider's stock valued at $131,000 after purchasing an additional 4,098 shares in the last quarter. Institutional investors own 62.68% of the company's stock.

United Fire Group Stock Performance

The business has a 50-day moving average of $27.87 and a two-hundred day moving average of $27.55. The company has a market cap of $740.74 million, a P/E ratio of 8.28 and a beta of 0.53. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.37 and a quick ratio of 0.34.

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.