United Fire Group (NASDAQ:UFCS) Sets New 1-Year High – Should You Buy?

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

Analyst Upgrades and Downgrades

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

United Fire Group Stock Down 0.5%

The stock has a market capitalization of $1.35 billion, a P/E ratio of 10.59 and a beta of 0.50. The firm’s fifty day moving average is $47.44 and its 200-day moving average is $40.87. 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 (NASDAQ:UFCS) last issued its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share for the quarter, topping the consensus estimate of $0.87 by $0.29. The firm had revenue of $369.44 million for 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, equities research analysts predict that United Fire Group, Inc will post 4.69 earnings per share for the current year.

United Fire Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 19th. Investors 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 yield of 1.5%. United Fire Group’s dividend payout ratio is 16.13%.

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

Insider Transactions at United Fire Group

In other United Fire Group news, Director George D. Milligan acquired 4,500 shares of United Fire Group stock in a transaction on Friday, June 5th. The shares were bought at an average price 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 $4,072,237.82. This trade 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 the SEC website. Insiders own 6.06% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC increased its position in United Fire Group by 129.4% in 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 bought a new position in United Fire Group in the 4th quarter worth approximately $26,000. Federated Hermes Inc. lifted its holdings in United Fire Group by 109.5% during the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider’s stock worth $43,000 after buying an additional 622 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in United Fire Group by 812.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,570 shares of the insurance provider’s stock worth $45,000 after buying an additional 1,398 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new position in United Fire Group in the 4th quarter valued at $48,000. Institutional investors and hedge funds own 62.68% 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.