United Fire Group (NASDAQ:UFCS) Downgraded to Hold Rating by Zacks Research

Zacks Research downgraded shares of United Fire Group (NASDAQ:UFCS) from a strong-buy rating to a hold rating in a report published on Monday,Zacks.com reports.

UFCS has been the subject of a number of other research reports. Piper Sandler boosted their target price on shares of United Fire Group from $45.00 to $57.00 and gave the stock an “overweight” rating in a research note on Thursday, May 7th. Weiss Ratings restated a “buy (b)” rating on shares of United Fire Group in a research report on Wednesday, May 13th. Wall Street Zen upgraded United Fire Group from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Finally, JonesTrading upped their price objective 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. Three analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, United Fire Group presently has an average rating of “Moderate Buy” and a consensus target price of $51.00.

United Fire Group Trading Down 0.5%

Shares of UFCS stock opened at $52.52 on Monday. 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 has a fifty-two week low of $25.79 and a fifty-two week high of $54.42. The stock has a market capitalization of $1.35 billion, a P/E ratio of 10.59 and a beta of 0.50. The company has a 50 day moving average price of $47.44 and a 200 day moving average price of $40.87.

United Fire Group (NASDAQ:UFCS) last posted its quarterly earnings results on Tuesday, May 5th. The insurance provider reported $1.16 EPS for the quarter, topping the consensus estimate of $0.87 by $0.29. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%. The business had revenue of $369.44 million during the quarter, compared to the consensus estimate of $340.15 million. Equities research analysts predict that United Fire Group will post 4.69 EPS for the current fiscal year.

United Fire Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid 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 of this dividend was Friday, June 5th. United Fire Group’s dividend payout ratio (DPR) is currently 16.13%.

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

Insider Transactions at United Fire Group

In other news, Director George D. Milligan bought 4,500 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were purchased 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 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 filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 6.06% of the company’s stock.

Institutional Trading of United Fire Group

A number of hedge funds have recently added to or reduced their stakes in UFCS. Smartleaf Asset Management LLC boosted its holdings in shares of United Fire Group by 129.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 686 shares of the insurance provider’s stock valued at $25,000 after purchasing an additional 387 shares during the last quarter. Basepoint Wealth LLC acquired a new stake in United Fire Group in the fourth quarter valued at approximately $26,000. Federated Hermes Inc. grew its holdings in United Fire Group by 109.5% during the 4th quarter. Federated Hermes Inc. now owns 1,190 shares of the insurance provider’s stock valued at $43,000 after purchasing an additional 622 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new stake in shares of United Fire Group during the fourth quarter worth about $48,000. Finally, Meeder Asset Management Inc. purchased a new stake in United Fire Group during the 4th quarter worth approximately $53,000. 62.68% of the stock is owned by institutional investors and hedge funds.

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.