United Fire Group (NASDAQ:UFCS) Sets New 52-Week High – Should You Buy?

United Fire Group, Inc (NASDAQ:UFCS) hit a new 52-week high on Friday . The stock traded as high as $56.74 and last traded at $54.8850, with a volume of 3939 shares changing hands. The stock had previously closed at $53.67.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Zacks Research lowered United Fire Group from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Piper Sandler boosted their price target on United Fire Group from $57.00 to $60.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Wall Street Zen cut shares of United Fire Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 2nd. Finally, Weiss Ratings raised shares of United Fire Group from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, United Fire Group currently has an average rating of “Buy” and a consensus target price of $52.50.

United Fire Group Trading Up 0.6%

The firm has a market capitalization of $1.42 billion, a price-to-earnings ratio of 10.24 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 firm’s 50-day simple moving average is $53.01 and its 200 day simple moving average is $46.32.

United Fire Group (NASDAQ:UFCS) last issued its earnings results on Monday, August 3rd. The insurance provider reported $1.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.69 by $0.61. The firm had revenue of $383.73 million for the quarter, compared to the consensus estimate of $347.76 million. United Fire Group had a return on equity of 15.19% and a net margin of 9.57%. Equities analysts expect that United Fire Group, Inc will post 4.75 earnings per share for the current year.

United Fire Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, September 4th. United Fire Group’s dividend payout ratio is currently 14.87%.

United Fire Group announced that its Board of Directors has authorized a stock repurchase program on Wednesday, May 20th that allows the company to buyback 2,000,000 shares. This buyback authorization allows the insurance provider to purchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other United Fire Group news, Director Scott Carlton sold 9,777 shares of United Fire Group stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $55.52, for a total value of $542,819.04. Following the transaction, the director owned 200,552 shares in the company, valued at $11,134,647.04. The trade was a 4.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 6.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. IFP Advisors Inc raised its position in shares of United Fire Group by 25.1% in the 2nd quarter. IFP Advisors Inc now owns 1,400 shares of the insurance provider’s stock worth $73,000 after acquiring an additional 281 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of United Fire Group by 23.6% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,726 shares of the insurance provider’s stock valued at $63,000 after purchasing an additional 329 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of United Fire Group by 17.7% during the 1st quarter. NewEdge Advisors LLC now owns 2,499 shares of the insurance provider’s stock valued at $74,000 after purchasing an additional 375 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in 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 purchasing an additional 387 shares during the period. Finally, The Manufacturers Life Insurance Company grew its stake in United Fire Group by 5.2% during the second quarter. The Manufacturers Life Insurance Company now owns 7,883 shares of the insurance provider’s stock worth $226,000 after purchasing an additional 391 shares during the period. 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.