United Fire Group (NASDAQ:UFCS) Releases Quarterly Earnings Results, Beats Estimates By $0.61 EPS

United Fire Group (NASDAQ:UFCS) released its quarterly earnings data on Monday. The insurance provider reported $1.30 earnings per share for the quarter, topping the consensus estimate of $0.69 by $0.61, FiscalAI reports. The company had revenue of $383.73 million for the quarter, compared to analyst estimates of $347.76 million. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%.

United Fire Group Stock Performance

Shares of UFCS stock opened at $52.09 on Tuesday. United Fire Group has a 52 week low of $26.10 and a 52 week high of $54.42. The company has a market capitalization of $1.34 billion, a price-to-earnings ratio of 10.50 and a beta of 0.50. The company has a 50-day simple moving average of $49.53 and a 200 day simple moving average of $42.88. 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 Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.80 annualized dividend and a dividend yield of 1.5%. United Fire Group’s payout ratio is presently 16.13%.

United Fire Group announced that its Board of Directors has approved a stock repurchase program on Wednesday, May 20th that authorizes the company to buyback 2,000,000 shares. This buyback authorization authorizes 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 believes its stock is undervalued.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on UFCS. Zacks Research downgraded shares of United Fire Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. JonesTrading boosted their price target 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 upped their price objective on United Fire Group from $45.00 to $57.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of United Fire Group in a research report on Wednesday, May 13th. Finally, Wall Street Zen cut United Fire Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday. Three investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $51.00.

Insiders Place Their Bets

In related news, Director George D. Milligan acquired 4,500 shares of the business’s stock in a transaction on Friday, June 5th. The stock was purchased at an average cost of $45.23 per share, for a total transaction of $203,535.00. Following the completion of the transaction, the director directly owned 90,034 shares of the company’s stock, 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 Securities & Exchange Commission, which is accessible through this link. 6.06% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On United Fire Group

A number of large investors have recently made changes to their positions in the company. 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. AQR Capital Management LLC increased its holdings in shares of United Fire Group by 59.5% during the second 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 increased its holdings 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 worth $6,429,000 after purchasing an additional 93,525 shares during the period. First Trust Advisors LP acquired a new stake in shares of United Fire Group in the third quarter valued at approximately $2,080,000. Finally, Renaissance Technologies LLC raised its position in shares of United Fire Group by 94.4% in the fourth quarter. Renaissance Technologies LLC now owns 140,510 shares of the insurance provider’s stock valued at $5,108,000 after buying an additional 68,227 shares in the last quarter. 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.