United Fire Group (NASDAQ:UFCS) Reaches New 1-Year High – Time to Buy?

United Fire Group, Inc (NASDAQ:UFCS) reached a new 52-week high during trading on Monday . The company traded as high as $54.42 and last traded at $53.64, with a volume of 130470 shares traded. The stock had previously closed at $53.93.

Analysts Set New Price Targets

UFCS has been the subject of several analyst reports. Weiss Ratings restated a “buy (b)” rating on shares of United Fire Group in a research note on Wednesday, May 13th. Wall Street Zen upgraded shares of United Fire Group from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. JonesTrading lifted their target price on United Fire Group from $40.00 to $45.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Zacks Research upgraded United Fire Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, May 8th. Finally, Piper Sandler increased 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. One equities research analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company’s stock. Based on data from 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 50-day moving average of $46.94 and a 200-day moving average of $40.65. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of 10.90 and a beta of 0.50. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15.

United Fire Group (NASDAQ:UFCS) last released its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 EPS for the quarter, topping 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 firm had revenue of $369.44 million during the quarter, compared to the consensus estimate of $340.15 million. On average, equities research analysts forecast that United Fire Group, Inc will post 4.69 earnings per share for the current fiscal year.

United Fire Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Friday, June 5th. United Fire Group’s payout ratio is 16.13%.

United Fire Group announced that its board has initiated a share buyback plan on Wednesday, May 20th that allows the company to repurchase 2,000,000 shares. This repurchase authorization allows the insurance provider to buy shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at United Fire Group

In other United Fire Group news, Director George D. Milligan purchased 4,500 shares of the stock in a transaction dated Friday, June 5th. The shares were acquired at an average price of $45.23 per share, for a total transaction of $203,535.00. Following the completion of the acquisition, the director owned 90,034 shares of the company’s stock, valued at $4,072,237.82. This represents a 5.26% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 6.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On United Fire Group

A number of institutional investors have recently bought and sold shares of the business. Smartleaf Asset Management LLC grew its stake in United Fire Group by 129.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider’s stock valued at $25,000 after acquiring an additional 387 shares in the last quarter. Basepoint Wealth LLC purchased a new stake in shares of United Fire Group in the fourth quarter worth approximately $26,000. Federated Hermes Inc. boosted its holdings in shares of United Fire Group by 109.5% during the fourth quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider’s stock worth $43,000 after purchasing an additional 622 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of United Fire Group by 812.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,570 shares of the insurance provider’s stock worth $45,000 after purchasing an additional 1,398 shares during the period. Finally, Kemnay Advisory Services Inc. purchased a new position in United Fire Group during the fourth quarter valued at approximately $48,000. 62.68% of the stock is currently owned by institutional investors and hedge funds.

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.