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

United Fire Group, Inc (NASDAQ:UFCS) shares gapped up before the market opened 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.

Analyst Ratings Changes

A number of brokerages recently weighed in on UFCS. Weiss Ratings reissued a “buy (b)” rating on shares of United Fire Group in a research note on Wednesday, May 13th. JonesTrading upped 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. Wall Street Zen upgraded United Fire Group from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Piper Sandler increased their price target on United Fire Group from $45.00 to $57.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the stock. According to MarketBeat.com, United Fire Group has a consensus rating of “Buy” and an average target price of $51.00.

United Fire Group Trading Up 1.3%

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 company has a 50-day moving average price of $44.87 and a 200-day moving average price of $39.71. The company has a market capitalization of $1.31 billion, a price-to-earnings ratio of 10.25 and a beta of 0.52.

United Fire Group (NASDAQ:UFCS) last posted 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. 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 during the quarter, compared to analysts’ expectations of $340.15 million. Research analysts predict that United Fire Group, Inc will post 4.69 EPS for the current fiscal year.

United Fire Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 19th. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.6%. United Fire Group’s payout ratio is 16.13%.

United Fire Group declared that its Board of Directors has approved a share repurchase program 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. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at United Fire Group

In related news, Director George D. Milligan acquired 4,500 shares of the stock in a transaction dated Friday, June 5th. The shares were acquired at an average price of $45.23 per share, for a total transaction of $203,535.00. Following the completion of the purchase, the director owned 90,034 shares in the company, valued at approximately $4,072,237.82. The trade was a 5.26% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 bought and sold shares of the stock. Invesco Ltd. boosted its holdings in United Fire Group by 108.8% in the 2nd quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider’s stock valued at $9,959,000 after purchasing an additional 180,836 shares during the period. Royce & Associates LP increased its holdings in shares of United Fire Group by 236.4% during the 4th quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider’s stock worth $8,576,000 after purchasing an additional 165,789 shares during the period. AQR Capital Management LLC increased its holdings in shares of United Fire Group by 59.5% during the 2nd quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider’s stock worth $8,641,000 after purchasing an additional 112,318 shares during the period. UBS Group AG raised its position in shares of United Fire Group by 79.4% during the third quarter. UBS Group AG now owns 211,339 shares of the insurance provider’s stock valued at $6,429,000 after buying an additional 93,525 shares during the last quarter. Finally, First Trust Advisors LP acquired a new position in shares of United Fire Group during the third quarter valued at about $2,080,000. Institutional investors 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.