United Fire Group (NASDAQ:UFCS) Shares Gap Up – Should You Buy?

Shares of United Fire Group, Inc (NASDAQ:UFCS) 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

Several equities analysts have commented on the company. Zacks Research raised United Fire Group from a “hold” rating to a “strong-buy” rating in a report on Friday, May 8th. Piper Sandler lifted their price objective on United Fire Group from $45.00 to $57.00 and gave the stock an “overweight” rating in a report on Thursday, May 7th. Wall Street Zen upgraded United Fire Group from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Weiss Ratings restated a “buy (b)” rating on shares of United Fire Group in a research note on Wednesday, May 13th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $51.00.

United Fire Group Trading Up 1.3%

The stock has a market cap of $1.31 billion, a P/E ratio of 10.25 and a beta of 0.52. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.34 and a quick ratio of 0.34. The business’s 50 day simple moving average is $44.87 and its 200 day simple moving average is $39.71.

United Fire Group (NASDAQ:UFCS) last released its quarterly earnings data on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share for the quarter, beating 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 for the quarter, compared to the consensus estimate of $340.15 million. On average, 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 business also recently declared a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were paid a $0.20 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.80 annualized dividend and a yield of 1.6%. United Fire Group’s payout ratio is currently 16.13%.

United Fire Group announced that its Board of Directors has approved a stock buyback plan on Wednesday, May 20th that authorizes the company to repurchase 2,000,000 outstanding shares. This repurchase authorization authorizes the insurance provider to reacquire shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at United Fire Group

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 bought at an average cost 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 in the company, valued at $4,072,237.82. The trade was a 5.26% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 6.06% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On United Fire Group

Large investors have recently made changes to their positions in the company. Smartleaf Asset Management LLC increased its holdings in shares of United Fire Group by 129.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider’s stock worth $25,000 after buying an additional 387 shares in the last quarter. Basepoint Wealth LLC bought a new position in shares of United Fire Group in the fourth quarter valued at approximately $26,000. Federated Hermes Inc. boosted its holdings in shares of United Fire Group by 109.5% in the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider’s stock worth $43,000 after acquiring an additional 622 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in shares of United Fire Group in the 4th quarter worth approximately $48,000. Finally, Meeder Asset Management Inc. bought a new stake in United Fire Group during the 4th quarter worth approximately $53,000. 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.