Share Buyback Program Authorized by United Fire Group (NASDAQ:UFCS) Board

United Fire Group (NASDAQ:UFCS) declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 20th, RTT News reports. The company plans to repurchase 2,000,000 shares. This repurchase authorization allows the insurance provider to purchase shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

United Fire Group Trading Down 0.6%

UFCS stock traded down $0.28 during midday trading on Wednesday, hitting $48.04. The stock had a trading volume of 90,640 shares, compared to its average volume of 132,833. The firm has a market cap of $1.23 billion, a P/E ratio of 9.69 and a beta of 0.50. The business has a fifty day moving average price of $40.44 and a two-hundred day moving average price of $37.87. 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 has a 1-year low of $25.79 and a 1-year high of $49.94.

United Fire Group (NASDAQ:UFCS) last issued its earnings results on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.29. The business had revenue of $369.44 million during the quarter, compared to the consensus estimate of $340.16 million. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%. On average, sell-side analysts predict that United Fire Group will post 4.88 earnings per share for the current fiscal year.

Analyst Ratings Changes

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

Insider Activity at United Fire Group

In other news, major shareholder Dee Ann Mcintyre sold 4,250 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $38.84, for a total transaction of $165,070.00. Following the transaction, the insider owned 437,613 shares in the company, valued at approximately $16,996,888.92. This represents a 0.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Christopher R. Drahozal sold 4,250 shares of the company’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $38.49, for a total transaction of $163,582.50. Following the transaction, the director owned 429,113 shares in the company, valued at $16,516,559.37. This represents a 0.98% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 12,750 shares of company stock valued at $493,723. Insiders own 6.06% 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.