United Fire Group (NASDAQ:UFCS) Shares Up 6% Following Strong Earnings

United Fire Group, Inc (NASDAQ:UFCS) shares rose 6% during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $39.05 and last traded at $38.2940. Approximately 21,252 shares changed hands during trading, a decline of 80% from the average daily volume of 104,117 shares. The stock had previously closed at $36.13.

The insurance provider reported $1.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $0.60. The firm had revenue of $365.81 million during the quarter, compared to analyst estimates of $332.34 million. United Fire Group had a net margin of 8.52% and a return on equity of 14.19%.

United Fire Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 24th will be paid a $0.20 dividend. The ex-dividend date is Tuesday, February 24th. This represents a $0.80 annualized dividend and a dividend yield of 2.1%. This is a boost from United Fire Group’s previous quarterly dividend of $0.16. United Fire Group’s dividend payout ratio is presently 15.09%.

Key Headlines Impacting United Fire Group

Here are the key news stories impacting United Fire Group this week:

• Positive Sentiment: Q4 results materially beat expectations — adjusted operating EPS of $1.50 vs. consensus ~$0.90 and revenue $365.8M vs. ~$332M; the company also reported GAAP net income of $1.45 per diluted share. These beats are the primary driver behind today’s bullish move. United Fire Group, Inc. reports fourth quarter and full year 2025 results
• Positive Sentiment: Board approved a 25% quarterly dividend increase to $0.20 (ex‑dividend 2/24), boosting yield to ~2.1% — a sign management is confident in cash flow and capital position, supporting investor returns. United Fire Group Hikes Dividend After Strong 2025 Results
• Positive Sentiment: Management set an explicit target for a sub‑5% catastrophe loss ratio in 2026 and described expectations for sustained profitable growth — this guidance reduces earnings volatility risk from large CAT events. United Fire Group signals sustained profitable growth with 25% dividend increase and targets sub-5% catastrophe loss ratio in 2026
• Neutral Sentiment: Management commentary and the full earnings call / transcript provide additional color on underwriting discipline, reinsurance costs and investment income — useful for validating sustainability of the beat but not changing the headline outcome. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Balance‑sheet / liquidity metrics warrant monitoring — the company shows a low current and quick ratio (~0.37), which is typical for some insurers but could be a short‑term liquidity concern if claim costs or investment liquidity stress rise. Investors should watch capital, reinsurance placement and cash flow across upcoming quarters.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on UFCS shares. Wall Street Zen lowered shares of United Fire Group from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. Zacks Research downgraded United Fire Group from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Jones Trading raised their price target on United Fire Group from $33.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday, November 12th. Weiss Ratings reissued a “buy (b-)” rating on shares of United Fire Group in a research note on Monday, December 29th. Finally, Piper Sandler increased their target price on United Fire Group from $35.00 to $37.00 and gave the stock a “neutral” rating in a report on Monday, December 22nd. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $37.50.

Hedge Funds Weigh In On United Fire Group

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in shares of United Fire Group by 2.4% in the 4th quarter. Vanguard Group Inc. now owns 1,511,541 shares of the insurance provider’s stock valued at $54,945,000 after acquiring an additional 35,338 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in United Fire Group by 0.5% during the third quarter. Dimensional Fund Advisors LP now owns 1,466,752 shares of the insurance provider’s stock valued at $44,618,000 after purchasing an additional 7,230 shares during the period. Geode Capital Management LLC increased its stake in United Fire Group by 5.1% in the fourth quarter. Geode Capital Management LLC now owns 615,052 shares of the insurance provider’s stock valued at $22,361,000 after purchasing an additional 29,679 shares in the last quarter. Systematic Financial Management LP raised its holdings in United Fire Group by 3.5% in the second quarter. Systematic Financial Management LP now owns 603,747 shares of the insurance provider’s stock worth $17,328,000 after purchasing an additional 20,413 shares during the period. Finally, Invesco Ltd. boosted its position in shares of United Fire Group by 20.8% during the third quarter. Invesco Ltd. now owns 419,177 shares of the insurance provider’s stock worth $12,751,000 after purchasing an additional 72,169 shares in the last quarter. Institutional investors and hedge funds own 62.68% of the company’s stock.

United Fire Group Stock Up 7.2%

The company has a market cap of $987.75 million, a price-to-earnings ratio of 8.64 and a beta of 0.46. The company has a current ratio of 0.37, a quick ratio of 0.37 and a debt-to-equity ratio of 0.16. The firm’s fifty day moving average price is $36.09 and its 200-day moving average price is $33.28.

About United Fire Group

United Fire Group, Inc (NASDAQ: UFCS) is an insurance holding company based in Cedar Rapids, Iowa, that specializes in property and casualty coverage for commercial and personal lines. The company underwrites business through three primary segments: commercial, personal and specialty insurance. Within the commercial segment, United Fire Group offers tailored policies for small- and medium-sized enterprises, including general liability, commercial property and workers’ compensation. Its personal lines cover homeowners, auto, farm and umbrella policies.

United Fire Group distributes its products primarily through a national network of independent insurance agents and brokers.