Stewart Information Services (NYSE:STC) Releases Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Key Points

• Stewart Information Services missed quarterly earnings expectations: EPS was $1.33 versus the $1.50 consensus estimate, while revenue of $900.7 million was slightly below the $903.7 million forecast.
• The stock rose 0.6% to $52.72 during Wednesday trading, but remains well below its 52-week high of $78.61. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $80.25.
• The company increased its quarterly dividend to $0.55 per share, or $2.20 annually, representing a 4.2% yield and a 48.25% payout ratio.

Stewart Information Services (NYSE:STC - Get Free Report) posted its quarterly earnings results on Wednesday. The insurance provider reported $1.33 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.17), FiscalAI reports. Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%. The company had revenue of $900.70 million for the quarter, compared to analysts' expectations of $903.67 million.

Stewart Information Services Trading Up 0.6%

STC traded up $0.30 during mid-day trading on Wednesday, hitting $52.72. 281,599 shares of the stock were exchanged, compared to its average volume of 244,037. The firm's fifty day moving average is $61.80 and its two-hundred day moving average is $65.27. Stewart Information Services has a 1-year low of $48.74 and a 1-year high of $78.61. The company has a market cap of $1.61 billion, a PE ratio of 11.56 and a beta of 1.04. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 0.39.

Stewart Information Services Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Tuesday, September 15th. This is a positive change from Stewart Information Services's previous quarterly dividend of $0.5250. Stewart Information Services's dividend payout ratio is currently 48.25%.

Insiders Place Their Bets

In other Stewart Information Services news, insider Brian Glaze sold 1,500 shares of Stewart Information Services stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $69.16, for a total value of $103,740.00. Following the completion of the transaction, the insider directly owned 11,784 shares of the company's stock, valued at $814,981.44. The trade was a 11.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 2.94% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

STC has been the subject of several analyst reports. Keefe, Bruyette & Woods lowered Stewart Information Services from an "outperform" rating to a "market perform" rating and lowered their price objective for the stock from $77.00 to $71.00 in a research report on Monday, July 27th. Zacks Research upgraded Stewart Information Services from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 22nd. Weiss Ratings downgraded Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday. Wall Street Zen cut shares of Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Stewart Information Services in a research note on Monday, October 12th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $80.25.

Stewart Information Services Company Profile

Stewart Information Services Corporation NYSE: STC is a global provider of title insurance and real estate transaction services. Through its Stewart Title operations, the company helps protect property owners, lenders and other participants from losses arising from defects in a property's title.

The company offers title searches and examinations, title insurance policies, escrow and closing services, settlement services, and related solutions for residential and commercial real estate transactions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.