United Fire Group (NASDAQ:UFCS) Trading Down 3.9% – Here’s Why

United Fire Group, Inc (NASDAQ:UFCS) shares traded down 3.9% during mid-day trading on Wednesday . The company traded as low as $49.80 and last traded at $49.6770. 16,105 shares changed hands during trading, a decline of 87% from the average session volume of 127,428 shares. The stock had previously closed at $51.67.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on UFCS. JonesTrading boosted their target price on shares of United Fire Group from $40.00 to $45.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Weiss Ratings reissued a “buy (b)” rating on shares of United Fire Group in a research report on Wednesday, May 13th. 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. Zacks Research downgraded United Fire Group from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Finally, Wall Street Zen raised United Fire Group from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, United Fire Group has a consensus rating of “Moderate Buy” and a consensus target price of $51.00.

United Fire Group Stock Down 3.6%

The company’s 50 day moving average price is $48.60 and its 200 day moving average price is $41.40. The company has a quick ratio of 0.34, a current ratio of 0.34 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of 10.04 and a beta of 0.50.

United Fire Group (NASDAQ:UFCS) last issued 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 company had revenue of $369.44 million during the quarter, compared to analyst estimates of $340.15 million. As a group, research analysts forecast that United Fire Group, Inc will post 4.69 earnings per share for the current fiscal year.

United Fire Group Announces Dividend

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

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

Insider Activity

In other news, Director George D. Milligan acquired 4,500 shares of the business’s stock in a transaction on Friday, June 5th. The stock was bought at an average price of $45.23 per share, with a total value of $203,535.00. Following the completion of the acquisition, the director owned 90,034 shares of the company’s stock, valued at approximately $4,072,237.82. This represents a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. 6.06% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On United Fire Group

A number of hedge funds have recently made changes to their positions in the company. Smartleaf Asset Management LLC boosted 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 worth $25,000 after purchasing an additional 387 shares during the last quarter. Basepoint Wealth LLC acquired a new position in United Fire Group during the fourth quarter worth $26,000. Federated Hermes Inc. grew its holdings in United Fire Group by 109.5% in the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider’s stock valued at $43,000 after buying an additional 622 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of United Fire Group by 812.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,570 shares of the insurance provider’s stock worth $45,000 after acquiring an additional 1,398 shares during the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of United Fire Group during the 4th quarter valued at about $48,000. Institutional investors and hedge funds own 62.68% of the company’s stock.

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.