United Fire Group (NASDAQ:UFCS) Hits New 1-Year High – Time to Buy?

United Fire Group, Inc (NASDAQ:UFCS) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $50.00 and last traded at $49.87, with a volume of 35476 shares. The stock had previously closed at $48.50.

Wall Street Analysts Forecast Growth

UFCS has been the topic of several research reports. Weiss Ratings reiterated a “buy (b)” rating on shares of United Fire Group in a research report on Wednesday, May 13th. 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 research report on Thursday, May 7th. JonesTrading upped their target price on United Fire Group from $40.00 to $45.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Wall Street Zen raised United Fire Group from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Finally, Zacks Research raised United Fire Group from a “hold” rating to a “strong-buy” rating in a 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 company. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus target price of $51.00.

United Fire Group Price Performance

The company has a fifty day simple moving average of $44.65 and a two-hundred day simple moving average of $39.61. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.34 and a current ratio of 0.34. The company has a market capitalization of $1.27 billion, a price-to-earnings ratio of 10.04 and a beta of 0.52.

United Fire Group (NASDAQ:UFCS) last issued its quarterly earnings results on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.87 by $0.29. The company had revenue of $369.44 million for the quarter, compared to analyst estimates of $340.15 million. United Fire Group had a return on equity of 14.65% and a net margin of 9.16%. As a group, research analysts anticipate that United Fire Group, Inc will post 4.69 earnings per share for the current year.

United Fire Group Dividend Announcement

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

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

Insider Buying and Selling

In related news, Director George D. Milligan acquired 4,500 shares of the company’s stock in a transaction dated 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 purchase, the director directly owned 90,034 shares in the company, valued at $4,072,237.82. The trade was a 5.26% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 6.06% of the stock is owned by company insiders.

Institutional Investors Weigh In On United Fire Group

Institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada raised its stake in United Fire Group by 9.7% during the first quarter. Royal Bank of Canada now owns 117,441 shares of the insurance provider’s stock worth $3,459,000 after purchasing an additional 10,346 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of United Fire Group by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,482 shares of the insurance provider’s stock worth $368,000 after buying an additional 546 shares during the last quarter. Millennium Management LLC raised its position in shares of United Fire Group by 5.5% in the 1st quarter. Millennium Management LLC now owns 138,540 shares of the insurance provider’s stock worth $4,081,000 after buying an additional 7,234 shares during the period. NewEdge Advisors LLC raised its position in shares of United Fire Group by 17.7% in the 1st quarter. NewEdge Advisors LLC now owns 2,499 shares of the insurance provider’s stock worth $74,000 after buying an additional 375 shares during the period. Finally, Empowered Funds LLC boosted its holdings in United Fire Group by 29.5% in the first quarter. Empowered Funds LLC now owns 96,663 shares of the insurance provider’s stock valued at $2,848,000 after acquiring an additional 21,999 shares during the last quarter. 62.68% of the stock is currently owned by hedge funds and other institutional investors.

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.