166,480 Shares of Stewart Information Services Corporation $STC Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 166,480 shares of Stewart Information Services in the second quarter, worth approximately $11.0 million. Institutional investors and hedge funds collectively own 96.9% of STC, with BlackRock also establishing a sizable new position.
• Stewart reported quarterly revenue of $895.8 million, up 24.5% year over year and above estimates, but earnings per share of $1.39 fell short of the $1.63 consensus forecast.
• The company increased its quarterly dividend to $0.55 per share, implying an annualized payout of $2.20 and a 3.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $81.50, despite some recent downgrades.

Bank of America Corp DE acquired a new position in shares of Stewart Information Services Corporation (NYSE:STC - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 166,480 shares of the insurance provider's stock, valued at approximately $10,991,000. Bank of America Corp DE owned 0.55% of Stewart Information Services at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. BlackRock Inc. purchased a new stake in Stewart Information Services during the second quarter valued at about $347,274,000. Bank of New York Mellon Corp purchased a new position in Stewart Information Services in the second quarter valued at approximately $17,759,000. Heartland Advisors Inc. purchased a new position in Stewart Information Services in the second quarter valued at approximately $8,252,000. Legal & General Group Plc acquired a new position in Stewart Information Services during the second quarter valued at approximately $5,151,000. Finally, Capital International Investors lifted its position in Stewart Information Services by 10.2% during the fourth quarter. Capital International Investors now owns 842,077 shares of the insurance provider's stock valued at $59,164,000 after buying an additional 77,618 shares in the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Stewart Information Services

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

Stewart Information Services Price Performance

Shares of STC opened at $59.29 on Friday. The stock has a 50 day moving average of $67.27 and a 200-day moving average of $66.40. Stewart Information Services Corporation has a 52 week low of $57.10 and a 52 week high of $78.61. The firm has a market cap of $1.81 billion, a price-to-earnings ratio of 13.00 and a beta of 0.97. 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 (NYSE:STC - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The insurance provider reported $1.39 earnings per share for the quarter, missing analysts' consensus estimates of $1.63 by ($0.24). Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%.The business had revenue of $895.80 million for the quarter, compared to analyst estimates of $838.07 million. During the same period last year, the company posted $1.34 earnings per share. The firm's revenue for the quarter was up 24.5% on a year-over-year basis. As a group, analysts forecast that Stewart Information Services Corporation will post 5.26 EPS for the current year.

Stewart Information Services Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a $0.55 dividend. This is a boost from Stewart Information Services's previous quarterly dividend of $0.5250. This represents a $2.20 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Stewart Information Services's dividend payout ratio is 48.25%.

Analyst Upgrades and Downgrades

STC has been the subject of several recent research reports. Keefe, Bruyette & Woods downgraded Stewart Information Services from an "outperform" rating to a "market perform" rating and lowered their price target for the company from $77.00 to $71.00 in a report on Monday, July 27th. Zacks Research upgraded Stewart Information Services from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 22nd. Weiss Ratings downgraded shares of Stewart Information Services from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, September 18th. Wall Street Zen lowered shares of Stewart Information Services from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Finally, Benchmark started coverage on shares of Stewart Information Services in a research report on Tuesday, July 21st. They set a "buy" rating and a $87.00 target price on the stock. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Stewart Information Services currently has an average rating of "Moderate Buy" and a consensus price target of $81.50.

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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