United Fire Group (NASDAQ:UFCS) Shares Gap Up – What’s Next?

Shares of United Fire Group, Inc (NASDAQ:UFCS) gapped up prior to trading on Wednesday . The stock had previously closed at $48.50, but opened at $50.65. United Fire Group shares last traded at $50.9850, with a volume of 5,196 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on UFCS. Zacks Research raised United Fire Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, May 8th. Piper Sandler boosted their target price on United Fire Group from $45.00 to $57.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. JonesTrading upped their price target on United Fire Group from $40.00 to $45.00 and gave the stock a “buy” 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 research report on Saturday, May 9th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of United Fire Group in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $51.00.

United Fire Group Stock Performance

The stock’s 50-day simple moving average is $45.31 and its 200 day simple moving average is $39.92. The company has a market capitalization of $1.29 billion, a PE ratio of 10.11 and a beta of 0.52. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.34 and a current ratio of 0.34.

United Fire Group (NASDAQ:UFCS) last released its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.29. The business had revenue of $369.44 million during the quarter, compared to analysts’ expectations of $340.15 million. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. As a group, research analysts expect that United Fire Group, Inc will post 4.69 earnings per share for the current fiscal year.

United Fire Group Announces Dividend

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

United Fire Group announced that its Board of Directors has initiated a share buyback program on Wednesday, May 20th that allows the company to buyback 2,000,000 shares. This buyback authorization allows the insurance provider to purchase shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other United Fire Group news, Director George D. Milligan acquired 4,500 shares of the stock in a transaction dated Friday, June 5th. The stock was acquired at an average cost of $45.23 per share, with a total value of $203,535.00. Following the transaction, the director owned 90,034 shares in the company, valued at $4,072,237.82. The trade was a 5.26% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 6.06% of the company’s stock.

Hedge Funds Weigh In On United Fire Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UFCS. Quantinno Capital Management LP raised its holdings in United Fire Group by 168.7% during the first quarter. Quantinno Capital Management LP now owns 43,842 shares of the insurance provider’s stock worth $1,625,000 after purchasing an additional 27,526 shares in the last quarter. First Trust Advisors LP lifted its position in shares of United Fire Group by 1.0% during the 1st quarter. First Trust Advisors LP now owns 70,452 shares of the insurance provider’s stock worth $2,611,000 after buying an additional 731 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of United Fire Group by 0.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,489,968 shares of the insurance provider’s stock valued at $55,219,000 after buying an additional 12,329 shares in the last quarter. Gallacher Capital Management LLC acquired a new position in shares of United Fire Group in the 1st quarter valued at $237,000. Finally, Allspring Global Investments Holdings LLC grew its position in shares of United Fire Group by 11.4% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 21,573 shares of the insurance provider’s stock valued at $792,000 after buying an additional 2,206 shares during the last quarter. 62.68% of the stock is 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.