United Fire Group (NASDAQ:UFCS) Stock Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• United Fire Group's stock crossed above its 200-day moving average (200‑day MA $34.99), trading as high as $37.53 and last at $37.26, with a market cap of about $951 million and a P/E of 8.32.
• The company reported a strong quarter—EPS $1.50 vs. $0.90 expected and revenue $365.8M vs. $332.3M—and raised its quarterly dividend to $0.20 (annualized $0.80, ~2.1% yield).
• Analyst views are mixed (two Buy, two Hold) but the consensus is a Moderate Buy with a $40.50 average price target, while insiders sold roughly 12,750 shares over the past 90 days.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report)'s share price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $34.99 and traded as high as $37.53. United Fire Group shares last traded at $37.26, with a volume of 104,055 shares trading hands.

Analyst Ratings Changes

Several analysts have recently commented on UFCS shares. JonesTrading lifted 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. Weiss Ratings reiterated a "buy (b-)" rating on shares of United Fire Group in a research report on Monday, December 29th. Zacks Research cut United Fire Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Wall Street Zen downgraded United Fire Group from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Piper Sandler upped their price target on United Fire Group from $37.00 to $41.00 and gave the company a "neutral" rating in a research note on Thursday, February 12th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $40.50.

United Fire Group Price Performance

The stock has a market cap of $950.88 million, a price-to-earnings ratio of 8.32 and a beta of 0.44. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.16. The company's fifty day moving average is $37.09 and its two-hundred day moving average is $34.99.

United Fire Group (NASDAQ:UFCS - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The insurance provider reported $1.50 EPS for the quarter, topping analysts' consensus estimates of $0.90 by $0.60. United Fire Group had a return on equity of 13.84% and a net margin of 8.52%.The company had revenue of $365.81 million for the quarter, compared to analysts' expectations of $332.34 million. As a group, research analysts predict that United Fire Group, Inc will post 2.42 earnings per share for the current year.

United Fire Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, February 24th. This is a positive change from United Fire Group's previous quarterly dividend of $0.16. United Fire Group's dividend payout ratio is currently 17.86%.

Insider Activity

In other news, Director Christopher R. Drahozal sold 4,250 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $38.49, for a total value of $163,582.50. Following the completion of the transaction, the director owned 429,113 shares of the company's stock, valued at approximately $16,516,559.37. This trade represents a 0.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, major shareholder Dee Ann Mcintyre sold 4,250 shares of United Fire Group stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $38.84, for a total transaction of $165,070.00. Following the completion of the transaction, the insider owned 437,613 shares of the company's stock, valued at $16,996,888.92. This trade represents a 0.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 12,750 shares of company stock valued at $493,723. 6.12% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On United Fire Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC grew its stake in shares of United Fire Group by 129.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock worth $25,000 after acquiring an additional 387 shares in the last quarter. Basepoint Wealth LLC purchased a new position in United Fire Group in the fourth quarter valued at $26,000. Federated Hermes Inc. grew its stake in United Fire Group by 109.5% during the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock worth $43,000 after purchasing an additional 622 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in United Fire Group during the 4th quarter worth $48,000. Finally, Meeder Asset Management Inc. acquired a new position in United Fire Group during the 4th quarter worth $53,000. Hedge funds and other 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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