United Fire Group (NASDAQ:UFCS) Stock Price Up 6% Following Better-Than-Expected Earnings

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

The insurance provider reported $1.50 EPS for the quarter, topping the consensus estimate of $0.90 by $0.60. The company 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 firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 24th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.0%. This is a positive change from United Fire Group’s previous quarterly dividend of $0.16. The ex-dividend date of this dividend is Tuesday, February 24th. United Fire Group’s payout ratio is 15.09%.

Key Headlines Impacting United Fire Group

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

• Positive Sentiment: Q4 beat: UFCS reported $1.50 EPS vs. $0.90 consensus and revenue of $365.8M vs. $332.3M — results characterized as record profits and a profitable turn in the quarter. United Fire Group Inc (UFCS) Q4 2025 Earnings Call Highlights: Record Profits and Strategic Growth
• Positive Sentiment: Dividend raise: management approved a 25% increase to the quarterly dividend (to $0.20), raising income for shareholders and signaling confidence in capital generation. United Fire Group Hikes Dividend After Strong 2025 Results
• Positive Sentiment: Underwriting focus and targets: management is guiding toward sustained profitable growth and has set a target of a sub-5% catastrophe loss ratio for 2026 — a favorable signal for loss trend control and future combined ratios. United Fire Group signals sustained profitable growth with 25% dividend increase and targets sub-5% catastrophe loss ratio in 2026
• Positive Sentiment: Management commentary: the earnings call emphasized a profitable turnaround, disciplined growth and capital deployment (dividend hike), which supports investor confidence. United Fire Group Signals Profitable Turn in Earnings Call
• Neutral Sentiment: Full call transcript is available for detailed review (useful for underwriting/guidance details and Q&A). United Fire UFCS Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Earnings presentation and analyst materials have been posted for investors who want the slide-level detail behind the results. United Fire Group, Inc. 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Ex-dividend timing: the announced ex-dividend/record dates (dividend payable March 10; record date Feb 24) can cause short-term downward pressure when the stock goes ex-dividend.

Analyst Ratings Changes

Several brokerages have recently issued reports on UFCS. Wall Street Zen cut shares of United Fire Group from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. Piper Sandler boosted their price target on shares of United Fire Group from $37.00 to $41.00 and gave the stock a “neutral” rating in a research note on Thursday. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of United Fire Group in a research report on Monday, December 29th. Jones Trading lifted their target price on United Fire Group from $33.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday, November 12th. Finally, Zacks Research cut United Fire Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $39.50.

Hedge Funds Weigh In On United Fire Group

Hedge funds have recently added to or reduced their stakes in the stock. Allianz Asset Management GmbH acquired a new stake in shares of United Fire Group in the 3rd quarter valued at about $5,940,000. Invesco Ltd. lifted its stake in United Fire Group by 108.8% in the second quarter. Invesco Ltd. now owns 347,008 shares of the insurance provider’s stock valued at $9,959,000 after buying an additional 180,836 shares during the last quarter. Royce & Associates LP lifted its stake in United Fire Group by 236.4% in the fourth quarter. Royce & Associates LP now owns 235,925 shares of the insurance provider’s stock valued at $8,576,000 after buying an additional 165,789 shares during the last quarter. CSM Advisors LLC acquired a new stake in shares of United Fire Group in the second quarter valued at approximately $4,154,000. Finally, AQR Capital Management LLC grew its position in shares of United Fire Group by 59.5% during the second quarter. AQR Capital Management LLC now owns 301,076 shares of the insurance provider’s stock worth $8,641,000 after acquiring an additional 112,318 shares during the last quarter. 62.68% of the stock is currently owned by hedge funds and other institutional investors.

United Fire Group Stock Up 2.3%

The business’s fifty day moving average price is $36.16 and its 200 day moving average price is $33.33. The firm has a market capitalization of $1.01 billion, a price-to-earnings ratio of 8.84 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.

United Fire Group Company Profile

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.