Stewart Information Services Corporation (NYSE:STC) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate Stewart Information Services a “Moderate Buy,” with four buy ratings and two holds; the average 12-month price target is $81.50.
• STC shares were down 12.1%, opening at $49.92, near their 12-month low of $49.40. The stock trades at a price-to-earnings ratio of 10.95.
• The company missed quarterly EPS expectations ($1.39 versus $1.63) despite revenue rising 24.5% year over year, and increased its quarterly dividend to $0.55, implying a 4.4% annual yield.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the six analysts that are covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $81.50.

Several equities research analysts have issued reports on STC shares. Keefe, Bruyette & Woods cut shares of Stewart Information Services from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $77.00 to $71.00 in a research report on Monday, July 27th. Weiss Ratings lowered shares of Stewart Information Services from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, September 18th. Benchmark started coverage on shares of Stewart Information Services in a research note on Tuesday, July 21st. They set a "buy" rating and a $87.00 price target for the company. Wall Street Zen lowered Stewart Information Services from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Finally, Zacks Research raised Stewart Information Services from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 22nd.

Stewart Information Services Stock Down 12.1%

NYSE:STC opened at $49.92 on Thursday. The company has a market cap of $1.52 billion, a price-to-earnings ratio of 10.95 and a beta of 0.97. Stewart Information Services has a twelve month low of $49.40 and a twelve month high of $78.61. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 0.39. The stock has a fifty day simple moving average of $66.37 and a 200-day simple moving average of $66.21.

Stewart Information Services (NYSE:STC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $1.39 EPS for the quarter, missing analysts' consensus estimates of $1.63 by ($0.24). The company had revenue of $895.80 million during the quarter, compared to the consensus estimate of $838.07 million. Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%.The company's revenue for the quarter was up 24.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.34 earnings per share. Analysts anticipate that Stewart Information Services will post 5.26 EPS for the current year.

Stewart Information Services Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a $0.55 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $2.20 annualized dividend and a dividend yield of 4.4%. This is a positive change from Stewart Information Services's previous quarterly dividend of $0.5250. Stewart Information Services's dividend payout ratio (DPR) is currently 48.25%.

Insider Activity

In other news, insider Brian Glaze sold 1,500 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $69.16, for a total transaction of $103,740.00. Following the transaction, the insider owned 11,784 shares of the company's stock, valued at approximately $814,981.44. This represents a 11.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.94% of the company's stock.

Institutional Trading of Stewart Information Services

A number of hedge funds have recently added to or reduced their stakes in the business. Caitlin John LLC purchased a new position in Stewart Information Services during the 2nd quarter valued at about $28,000. Integrated Wealth Concepts LLC bought a new position in shares of Stewart Information Services during the second quarter valued at approximately $42,000. Public Employees Retirement System of Ohio bought a new position in shares of Stewart Information Services during the second quarter valued at approximately $67,000. Clearstead Advisors LLC increased its holdings in Stewart Information Services by 50.9% during the fourth quarter. Clearstead Advisors LLC now owns 981 shares of the insurance provider's stock valued at $69,000 after buying an additional 331 shares during the period. Finally, Nykredit A S purchased a new position in Stewart Information Services during the second quarter valued at approximately $80,000. 96.90% of the stock is owned by hedge funds and other institutional investors.

About Stewart Information Services

Stewart Information Services Corporation is a title insurance and real estate services company headquartered in Houston, Texas. Through its Stewart Title operations, the company provides title insurance, escrow and closing services, and related services that help protect property buyers, lenders and other participants in real estate transactions from title defects and ownership-related risks.

The company also offers valuation and appraisal services, mortgage services, and technology-enabled solutions for the real estate and mortgage industries.

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