United Fire Group (NASDAQ:UFCS) Shares Gap Up After Strong Earnings

United Fire Group, Inc. (NASDAQ:UFCS) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $25.06, but opened at $28.33. United Fire Group shares last traded at $26.52, with a volume of 59,772 shares.

The insurance provider reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.64. United Fire Group had a net margin of 4.15% and a return on equity of 6.75%.

United Fire Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 13th. Stockholders of record on Friday, November 29th were given a $0.16 dividend. The ex-dividend date of this dividend was Friday, November 29th. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.44%. United Fire Group’s payout ratio is 32.99%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Piper Sandler raised United Fire Group from an “underweight” rating to a “neutral” rating and lifted their target price for the stock from $19.00 to $26.00 in a report on Monday, November 18th. StockNews.com raised shares of United Fire Group from a “buy” rating to a “strong-buy” rating in a report on Wednesday.

Insider Activity at United Fire Group

In other United Fire Group news, VP Corey Lynn Ruehle sold 2,664 shares of the stock in a transaction dated Thursday, December 19th. The shares were sold at an average price of $29.60, for a total value of $78,854.40. Following the completion of the sale, the vice president now owns 12,523 shares in the company, valued at approximately $370,680.80. This represents a 17.54 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 5.99% of the stock is owned by company insiders.

Hedge Funds Weigh In On United Fire Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UFCS. Hotchkis & Wiley Capital Management LLC purchased a new position in shares of United Fire Group during the 3rd quarter worth $2,740,000. Assenagon Asset Management S.A. boosted its holdings in United Fire Group by 42.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 315,779 shares of the insurance provider’s stock valued at $6,609,000 after purchasing an additional 93,836 shares during the last quarter. JPMorgan Chase & Co. grew its stake in shares of United Fire Group by 78.6% in the 4th quarter. JPMorgan Chase & Co. now owns 177,877 shares of the insurance provider’s stock valued at $5,061,000 after buying an additional 78,254 shares during the period. Foundry Partners LLC lifted its stake in shares of United Fire Group by 71.9% in the 3rd quarter. Foundry Partners LLC now owns 178,155 shares of the insurance provider’s stock valued at $3,729,000 after purchasing an additional 74,540 shares during the last quarter. Finally, American Century Companies Inc. grew its holdings in shares of United Fire Group by 87.6% during the 4th quarter. American Century Companies Inc. now owns 142,996 shares of the insurance provider’s stock worth $4,068,000 after purchasing an additional 66,756 shares during the period. Institutional investors and hedge funds own 62.68% of the company’s stock.

United Fire Group Stock Performance

The business has a 50-day moving average of $27.63 and a 200-day moving average of $23.90. The stock has a market capitalization of $665.68 million, a price-to-earnings ratio of 13.54 and a beta of 0.53.

About United Fire Group

United Fire Group, Inc, together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products.