United Fire Group (NASDAQ: UFCS) has recently been downgraded by multiple financial analysts, reflecting a cautious sentiment about the company’s stock performance. Wall Street Zen lowered its rating from “buy” to “hold” in a report published on Saturday. This shift follows a similar downgrade from Zacks Research, which moved United Fire Group from a “strong-buy” rating to a “hold” status on November 3, 2023.
Other analysts have provided mixed assessments as well. On August 11, 2023, Jones Trading increased its price target for United Fire Group from $32.00 to $33.00, maintaining a “buy” rating. Weiss Ratings reiterated a “hold (c+)” rating on October 8, 2023. Currently, two equities research analysts have assigned a “buy” rating, while two others have rated the company as a “hold.” Data from MarketBeat.com indicates a consensus rating of “Moderate Buy” with an average target price of $30.50.
Quarterly Earnings and Dividend Announcements
United Fire Group recently announced its quarterly earnings, reporting earnings per share (EPS) of $1.50 for the third quarter, significantly surpassing analysts’ estimates of $0.69 by $0.81. The firm generated revenue of $328.43 million, which fell short of expectations set at $354.46 million. The company’s return on equity stood at 11.84%, with a net margin of 6.94%. Analysts predict that United Fire Group will achieve an EPS of 2.42 for the current fiscal year.
In addition to its earnings report, United Fire Group declared a quarterly dividend of $0.16 per share, paid on September 12, 2023, to investors on record as of August 29, 2023. This dividend reflects an annualized payout of $0.64, translating to a yield of 1.8%. The company’s dividend payout ratio is currently at 15.09%.
Insider Trading and Institutional Activity
Recent insider trading activity includes a notable sale by Director John Paul E. Besong, who sold 2,450 shares on September 18, 2023, at an average price of $32.26, totaling approximately $79,037. Following this transaction, Besong holds 24,494 shares of the company, valued at about $790,176.44. This sale represents a 9.09% reduction in the director’s stake in the company. Such transactions have been disclosed in filings with the Securities and Exchange Commission (SEC).
On the institutional front, several hedge funds have adjusted their positions in United Fire Group. Allianz Asset Management GmbH acquired a new stake in the third quarter valued at approximately $5.94 million. Invesco Ltd. increased its stake by 108.8% during the second quarter, now holding 347,008 shares worth around $9.96 million. Other significant movements include CSM Advisors LLC purchasing a new stake valued at $4.15 million and AQR Capital Management LLC boosting its holdings by 59.5% during the same quarter. Currently, institutional and hedge fund investors own about 62.68% of United Fire Group’s stock.
United Fire Group, Inc., headquartered in the United States, specializes in providing property and casualty insurance for both individuals and businesses. The company offers a wide range of commercial and personal insurance products, including fire, automobile, and workers’ compensation coverage, as well as reinsurance services.
As analysts continue to assess the company’s performance in light of recent adjustments, investors will be closely monitoring both market reactions and future earnings reports.
