United Fire Group (NASDAQ:UFCS) Stock Price Down 3.9% - What's Next?

Key Points

• United Fire Group shares fell 3.9% in midday trading, briefly touching $49.80 before last trading around $49.68. Volume was sharply below normal at about 16,105 shares versus an average of 127,428.
• Analyst sentiment is mixed but leaning positive: Zacks cut UFCS to hold, while Piper Sandler and JonesTrading raised price targets and maintained bullish ratings. The stock currently carries a consensus Moderate Buy rating with an average target price of $51.00.
• The company recently delivered strong quarterly results, beating EPS and revenue estimates, and it also announced a 2 million-share buyback plus a $0.20 quarterly dividend. Insider buying by a director and a relatively low payout ratio may signal confidence in the company’s outlook.

United Fire Group, Inc (NASDAQ:UFCS - Get Free Report)'s share price fell 3.9% during mid-day trading on Wednesday . The company traded as low as $49.80 and last traded at $49.6770. Approximately 16,105 shares changed hands during mid-day trading, a decline of 87% from the average session volume of 127,428 shares. The stock had previously closed at $51.67.

Analysts Set New Price Targets

A number of brokerages recently weighed in on UFCS. Zacks Research lowered shares of United Fire Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Piper Sandler upped 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. JonesTrading increased their price objective 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. Weiss Ratings reiterated a "buy (b)" rating on shares of United Fire Group in a report on Wednesday, May 13th. Finally, Wall Street Zen raised United Fire Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $51.00.

United Fire Group Trading Down 3.6%

The stock has a fifty day simple moving average of $48.60 and a 200 day simple moving average of $41.40. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $1.28 billion, a P/E ratio of 10.04 and a beta of 0.50.

United Fire Group (NASDAQ:UFCS - Get Free Report) last announced 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. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. The business had revenue of $369.44 million during the quarter, compared to analyst estimates of $340.15 million. As a group, research analysts forecast that United Fire Group, Inc will post 4.69 EPS for the current year.

United Fire Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were given a dividend of $0.20 per share. The ex-dividend date was Friday, June 5th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.6%. United Fire Group's dividend payout ratio (DPR) is presently 16.13%.

United Fire Group announced that its Board of Directors has initiated a stock buyback program on Wednesday, May 20th that permits the company to repurchase 2,000,000 outstanding shares. This repurchase authorization permits the insurance provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Insider Activity at United Fire Group

In other news, Director George D. Milligan purchased 4,500 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was bought at an average cost of $45.23 per share, with a total value of $203,535.00. Following the completion of the purchase, the director owned 90,034 shares in the company, valued at approximately $4,072,237.82. This represents a 5.26% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 6.06% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Smartleaf Asset Management LLC grew its stake in shares of United Fire Group by 129.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider's stock worth $25,000 after buying an additional 387 shares in the last quarter. Basepoint Wealth LLC bought a new stake in United Fire Group during the fourth quarter worth approximately $26,000. Federated Hermes Inc. raised its position in United Fire Group by 109.5% during the fourth quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 622 shares during the period. Kemnay Advisory Services Inc. bought a new stake in United Fire Group in the fourth quarter worth $48,000. Finally, Meeder Asset Management Inc. bought a new position in United Fire Group during the fourth quarter valued at $53,000. 62.68% of the stock is owned by hedge funds and other institutional investors.

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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