United Fire Group, Inc. (NASDAQ: UFCS) has announced a quarterly dividend of **$0.16 per share**, scheduled for payment on **December 19, 2023**. Shareholders on record as of **December 5, 2023** will be eligible to receive this dividend, which reflects an annualized payout and a yield of **1.8%**. This announcement follows a trend where United Fire Group has reduced its dividend payout by approximately **0.1% per year** over the past three years.
The company’s dividend payout ratio stands at **23.4%**, indicating that its earnings sufficiently cover the dividend payments. Analysts project that United Fire Group will earn **$2.65** per share next year, which should allow the company to maintain its annual dividend of **$0.64**, resulting in an expected future payout ratio of **24.2%**.
Stock Performance and Market Analysis
During mid-day trading on Wednesday, shares of United Fire Group experienced a decline of **1.0%**, dropping **$0.38** to **$35.96**. A total of **42,826 shares** changed hands, which is below the average trading volume of **123,728 shares**. The company has a market capitalization of **$917.34 million**, a **P/E ratio** of **8.48**, and a beta of **0.47**.
In terms of financial stability, United Fire Group reports a **debt-to-equity ratio** of **0.16** and both a **current** and **quick ratio** of **0.37**. Over the last year, the stock has fluctuated, with a **12-month low** of **$24.11** and a **12-month high** of **$37.84**. The **50-day moving average** is noted at **$33.01**, while the **200-day moving average** sits at **$30.43**.
Analyst Ratings and Future Outlook
United Fire Group has garnered attention from several analysts, resulting in a mix of ratings. On **November 16, 2023**, Wall Street Zen upgraded the stock from a “hold” to a “buy” rating. Meanwhile, Weiss Ratings reaffirmed a “buy (B-)” rating on the same day. Jones Trading also increased its price target from **$33.00** to **$38.00**, assigning a “buy” rating in a research note dated **November 12, 2023**. Conversely, Zacks Research downgraded its rating from “strong buy” to “hold” on **November 3, 2023**.
Currently, two analysts have assigned a “buy” rating, and two have categorized the stock as a “hold,” leading to a consensus rating of “Moderate Buy” with a target price of **$33.00**, according to data from MarketBeat.
As United Fire Group continues to navigate the market landscape, its financial health and dividend stability will be critical factors for investors. The company, alongside its subsidiaries, provides property and casualty insurance for both individuals and businesses across the United States, offering a range of commercial and personal insurance products.
