United Fire Group, Inc. Declares Quarterly Dividend and Sees Continued Investments from Institutional Investors and Hedge Funds

United Fire Group, Inc. (NASDAQ:UFCS) has recently declared a quarterly dividend on May 17th, according to reports from Zacks. Scheduled for June 16th, this payout will provide shareholders of record on June 2nd with a dividend of $0.16 per share. This annualized $0.64 dividend will offer investors a yield of approximately 2.70%. As the ex-dividend date is set for June 1st, any purchases made after that point will not qualify for this dividend payment.

Despite missing analysts’ expectations in its last earnings report on February 15th, United Fire Group remains positive due to a return on equity of 0.13%, compared to the negative net margin of 1.26%. United Fire Group forecasts an EPS of up to $0.95 this year as it announces continuing investments from several institutional investors and hedge funds.

Bank of America Corp DE increased its stake in shares by nearly just under half in Q1 holding a staggering value of over $15 million while Envestnet Asset Management purchased more than 80 thousand additional shares raising its position by over half during Q1 alone. American Century Companies and AQR Capital Management also witnessed significant investment growth with both seeing large and expansive acquisitions throughout Q4 and Q2 respectively. Vanguard group increased their holdings by over forty thousand shares during the quarter totaling around $73 million worth.

This news comes off the back of months where bullish investors have seen interest grow rapidly since UFCS reported that Jay Smollen has been named its new Chief Financial Officer effective August 31st.

United Fire Group’s continued demonstration demonstrates its commitment to supporting and delivering value for shareholders shifting investor focus back onto the company’s initial plan while presenting potential future benefits including strong dividends and advantages in security sectors for businesses looking for cover or institutions looking for ways to leverage shareholder confidence into market returns.

As always though, investors will remain vigilant in scrutinizing the company’s reports and announcements before deciding to initiate any investment moves.

Analyzing United Fire Group’s Financial Performance: Dividends, Stock Performance, and Institutional Investments

United Fire Group: A Deep Dive into the Numbers

United Fire Group (NASDAQ: UFCS) is a popular insurance provider that specializes in commercial property and casualty insurance. In this article, we will analyze the company’s financial performance and identify what it means for current and potential investors. Let’s dive in.

Dividend Performance

Over the last three years, United Fire Group has decreased its dividend payout by an average of 21.5% annually. However, this does not undermine the fact that the company has increased its dividend every year for the past decade. With a dividend payout ratio of 32.5%, United Fire Group’s earnings are sufficiently covered.

Equities analysts expect United Fire Group to earn $1.60 per share next year, which indicates that the company can continue covering its annual dividend of $0.64 with an expected future payout ratio of 40%. This projection should give investors some confidence in UFCS’s financial stability.

Stock Performance

UFCS opened at $23.70 on Friday but has been fluctuating between a high of $37.26 and a low of $23.27 over the last twelve months. The 50-day moving average price stands at $26.43, while the 200-day moving average price is at $27.98.

Institutional Investments

Several institutional investors and hedge funds have recently increased or reduced their stakes in UFCS, including Bank of America Corp DE and Envestnet Asset Management Inc., among others.

Analysts’ Reviews

StockNews.com recently gave United Fire Group a “hold” rating while Piper Sandler bumped up its price objective from $25 to $26 but gave it an “underweight” rating on April 4th.

Insiders’ Actions

In May 2021, Director Christopher R Drahozal purchased 5000 shares at an average cost of $24.40 per share, amounting to a total transaction of $122,000. Drahozal now holds 41,916 shares in the company worth approximately $1,022,750. Corporate insiders own 7.54% of the company’s stock.

Conclusion

United Fire Group has had its ups and downs but seems to be a financially sound company that investors can confidently consider investing in. Although dividend payments have decreased annually by an average of 21.5% over the last three years, the dividend payout ratio is at a manageable percentage, assuring earnings coverage. Moreover, UFCS’s expected future payout ratio implies that their dividends are set to continue.

Furthermore, institutional investors and hedge funds have been active in UFCS with some increasing their stakes while others reducing theirs – marking UFCS as a favorite among savvy investors.

In terms of analysts’ reviews, it’s worth taking note of StockNews.com’s ‘hold’ rating given that Piper Sandler recently rated UFCS as “underweight” in April this year.

Finally, looking at insider trading activity over the past ninety days, many have been purchasing shares suggesting optimism for United Fire Group’s financial future.