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

United Fire Group, Inc (NASDAQ:UFCS)’s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $50.00 and last traded at $49.87, with a volume of 35476 shares traded. The stock had previously closed at $48.50.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on UFCS shares. JonesTrading lifted their price target on shares of United Fire Group from $40.00 to $45.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Zacks Research raised shares of United Fire Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, May 8th. Piper Sandler raised their price objective on United Fire Group from $45.00 to $57.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Weiss Ratings restated a “buy (b)” rating on shares of United Fire Group in a research note on Wednesday, May 13th. Finally, Wall Street Zen upgraded United Fire Group from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $51.00.

United Fire Group Trading Up 2.4%

The business’s 50-day simple moving average is $44.65 and its two-hundred day simple moving average is $39.61. The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15. The company has a market capitalization of $1.27 billion, a PE ratio of 10.04 and a beta of 0.52.

United Fire Group (NASDAQ:UFCS) last announced its earnings results on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.87 by $0.29. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%.The business had revenue of $369.44 million for the quarter, compared to analyst estimates of $340.15 million. On average, analysts predict that United Fire Group, Inc will post 4.69 earnings per share for the current year.

United Fire Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were issued a dividend of $0.20 per share. The ex-dividend date was Friday, June 5th. This represents a $0.80 annualized dividend and a yield of 1.6%. United Fire Group’s payout ratio is currently 16.13%.

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

Insider Activity

In other United Fire Group news, Director George D. Milligan bought 4,500 shares of United Fire Group stock in a transaction dated Friday, June 5th. The stock was bought at an average cost of $45.23 per share, for a total transaction of $203,535.00. Following the purchase, the director owned 90,034 shares in the company, valued at $4,072,237.82. This represents a 5.26% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 6.06% of the stock is currently owned by insiders.

Institutional Trading of United Fire Group

Institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. boosted its stake in United Fire Group by 108.8% during the 2nd quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider’s stock valued at $9,959,000 after acquiring an additional 180,836 shares during the last quarter. Royce & Associates LP raised its stake in shares of United Fire Group by 236.4% in the 4th quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider’s stock valued at $8,576,000 after purchasing an additional 165,789 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of United Fire Group by 59.5% in the 2nd quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider’s stock valued at $8,641,000 after purchasing an additional 112,318 shares in the last quarter. UBS Group AG raised its stake in shares of United Fire Group by 79.4% in the 3rd quarter. UBS Group AG now owns 211,339 shares of the insurance provider’s stock valued at $6,429,000 after purchasing an additional 93,525 shares in the last quarter. Finally, First Trust Advisors LP bought a new position in shares of United Fire Group during the third quarter worth about $2,080,000. 62.68% of the stock is owned by institutional investors and hedge funds.

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.