United Fire Group (NASDAQ:UFCS) Stock Price Down 3.9% – What’s Next?

United Fire Group, Inc (NASDAQ:UFCS) dropped 3.9% on Wednesday . The company traded as low as $49.80 and last traded at $49.6770. Approximately 16,105 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 127,428 shares. The stock had previously closed at $51.67.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on UFCS shares. Weiss Ratings reissued a “buy (b)” rating on shares of United Fire Group in a research report on Wednesday, May 13th. Wall Street Zen upgraded shares of United Fire Group from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Piper Sandler increased their target price on shares of United Fire Group from $45.00 to $57.00 and gave the stock an “overweight” rating in a report on Thursday, May 7th. JonesTrading raised their price target on shares of United Fire Group from $40.00 to $45.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. Finally, Zacks Research lowered shares of United Fire Group from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, United Fire Group currently has an average rating of “Moderate Buy” and a consensus target price of $51.00.

United Fire Group Price Performance

The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15. The business has a 50-day moving average price of $48.78 and a two-hundred day moving average price of $41.58. The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of 10.08 and a beta of 0.50.

United Fire Group (NASDAQ:UFCS) last announced its quarterly earnings results on Tuesday, May 5th. The insurance provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.87 by $0.29. The business had revenue of $369.44 million for the quarter, compared to the consensus estimate 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 forecast that United Fire Group, Inc will post 4.69 EPS for the current year.

United Fire Group Dividend Announcement

The business also recently announced 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 was Friday, June 5th. United Fire Group’s dividend payout ratio (DPR) is presently 16.13%.

United Fire Group announced that its board has initiated a share repurchase plan on Wednesday, May 20th that authorizes the company to repurchase 2,000,000 outstanding shares. This repurchase authorization authorizes the insurance provider to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Insider Activity

In other news, Director George D. Milligan purchased 4,500 shares of the stock in a transaction dated Friday, June 5th. The stock was acquired at an average price of $45.23 per share, for a total transaction of $203,535.00. Following the completion of the transaction, the director 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 ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 6.06% of the company’s stock.

Institutional Trading of United Fire Group

Several hedge funds have recently bought and sold shares of UFCS. Invesco Ltd. boosted its stake in United Fire Group by 108.8% during 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 stake in shares of United Fire Group by 236.4% in the fourth quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider’s stock valued at $8,576,000 after purchasing an additional 165,789 shares during the period. AQR Capital Management LLC raised 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 valued at $8,641,000 after buying an additional 112,318 shares during the last quarter. UBS Group AG raised 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 valued at $6,429,000 after buying an additional 93,525 shares during the last quarter. Finally, First Trust Advisors LP bought a new stake in shares of United Fire Group during the third quarter valued at approximately $2,080,000. 62.68% of the stock is currently owned by 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.