United Fire Group, Inc., a provider of property and casualty insurance, has announced a quarterly dividend of $0.16 per share, scheduled for distribution to shareholders on December 19, 2023. Shareholders of record on December 5 will be eligible for this payment. This dividend represents an annualized yield of 1.8%.
Over the past three years, United Fire Group has reduced its dividend by an average of 0.1% annually. The company currently maintains a dividend payout ratio of 23.4%, indicating that its earnings sufficiently cover the dividend payment. Analysts project earnings of $2.65 per share for the company in the upcoming year, which would allow for a predicted future payout ratio of 24.2%.
Market Performance and Share Analysis
During mid-day trading on Wednesday, shares of United Fire Group (NASDAQ: UFCS) declined by 1.0%, falling $0.38 to reach $35.96. A total of 42,826 shares exchanged hands, below the average trading volume of 123,728 shares. The company’s stock has fluctuated between a 12-month low of $24.11 and a high of $37.84. Currently, United Fire Group holds a market capitalization of $917.34 million, a price-to-earnings (P/E) ratio of 8.48, and a beta value of 0.47.
The company has reported a debt-to-equity ratio of 0.16, alongside a current ratio and quick ratio, both standing at 0.37. These figures indicate a relatively stable financial position, contributing to investor confidence.
Analyst Ratings and Future Outlook
Recent analyst reports reflect a range of perspectives on United Fire Group’s stock. On November 16, Wall Street Zen upgraded the company’s rating from “hold” to “buy.” Weiss Ratings also reaffirmed a “buy” rating with a grade of B-. Meanwhile, Jones Trading raised its price target on the stock from $33.00 to $38.00, maintaining a “buy” recommendation as of November 12.
Conversely, Zacks Research downgraded United Fire Group’s rating from “strong-buy” to “hold” on November 3. Currently, the consensus rating for the stock is categorized as a “Moderate Buy,” with an average target price of $33.00, according to data from MarketBeat.
United Fire Group provides a range of property and casualty insurance products, including coverage for both commercial and personal lines. The company operates across the United States, offering services such as fire, automobile, workers’ compensation, and reinsurance coverage. As it navigates market conditions, investor attention will remain focused on its dividend sustainability and overall financial health.
