United Fire Group director sells $209,332 in stock

Christopher R. Drahozal, a director at United Fire Group Inc. (NASDAQ:UFCS), recently sold shares of the company’s common stock over three consecutive days. According to a filing with the Securities and Exchange Commission, Drahozal sold a total of 7,500 shares, resulting in a transaction value of approximately $209,332. The transaction comes as UFCS shares have shown strong momentum, with a remarkable 43% gain over the past six months, according to InvestingPro data.

The sales were executed on March 4, 5, and 6 at prices ranging from $27.3133 to $28.3344 per share. These shares were held indirectly by the McIntyre Foundation, where Drahozal and his wife serve as directors. Following these transactions, Drahozal now indirectly owns 441,863 shares of United Fire Group. InvestingPro analysis indicates the stock is currently undervalued, with additional metrics and insights available in the comprehensive Pro Research Report covering this $727 million market cap insurer.

United Fire Group, a company based in Cedar Rapids, Iowa, operates in the fire, marine, and casualty insurance sector. The company maintains a strong financial profile with a "GOOD" overall health score and has demonstrated commitment to shareholder returns through 53 consecutive years of dividend payments.

In other recent news, United Fire Group reported strong fourth-quarter earnings, significantly exceeding analyst expectations. The company posted adjusted earnings per share of $1.25, surpassing the consensus estimate of $0.61, with revenue reaching $333.18 million, above the anticipated $294.8 million. Net income rose to $31.4 million from $19.6 million in the previous year, and the combined ratio improved to 94.4%. Net written premiums increased by 13% year-over-year to $278.5 million, driven by strong performance in commercial lines and assumed reinsurance business. Additionally, for the full year 2024, net income increased to $62.0 million, with a notable 37.5% rise in net investment income to $82.0 million.

Jones Trading recently initiated coverage on United Fire Group with a Buy rating and a price target of $32.00, highlighting the company’s growth potential in earned premiums and strategic positioning in the property and casualty insurance sector. Analysts from Jones Trading noted the opportunity for United Fire to increase its earned premiums annually at a low-teen rate, supported by a broad distribution network and strategic focus on cost efficiency. The firm’s refreshed management team and focus on profitability are expected to lower underwriting expense ratios, enhancing earnings growth potential over the medium term. These developments underscore United Fire’s substantial revenue growth and improved earnings potential.

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