Insider Buying: Stewart Information Services (NYSE:STC) Director Purchases $43,910.00 in Stock

Key Points

• Director Deborah Jane Matz purchased 1,000 STC shares at $43.91 each, investing $43,910 and becoming a direct shareholder.
• Stewart Information Services’ quarterly results fell short of expectations, with EPS of $1.33 versus the $1.50 consensus and revenue of $900.7 million versus $903.7 million expected. The stock recently traded near $43.47, close to its 52-week low.
• The company increased its quarterly dividend to $0.55 per share, equivalent to an annualized $2.20 payout and a yield of approximately 5.1%; analysts’ consensus rating remains “Hold” with an average price target of $75.75.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) Director Deborah Jane Matz purchased 1,000 shares of the company's stock in a transaction that occurred on Friday, October 23rd. The stock was bought at an average cost of $43.91 per share, for a total transaction of $43,910.00. Following the purchase, the director directly owned 1,000 shares in the company, valued at $43,910. This represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Stewart Information Services Trading Up 1.2%

STC stock traded up $0.51 during mid-day trading on Tuesday, reaching $43.47. 876,046 shares of the stock traded hands, compared to its average volume of 255,545. The company has a current ratio of 1.85, a quick ratio of 1.98 and a debt-to-equity ratio of 0.39. Stewart Information Services Corporation has a 52-week low of $42.73 and a 52-week high of $78.61. The company has a market cap of $1.33 billion, a P/E ratio of 10.89 and a beta of 1.04. The stock's fifty day moving average is $60.20 and its 200-day moving average is $65.20.

Stewart Information Services (NYSE:STC - Get Free Report) last announced its earnings results on Wednesday, October 21st. The insurance provider reported $1.33 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.17). The firm had revenue of $900.70 million during the quarter, compared to analyst estimates of $903.67 million. Stewart Information Services had a return on equity of 9.39% and a net margin of 3.58%. During the same quarter in the previous year, the business earned $1.64 earnings per share. As a group, sell-side analysts expect that Stewart Information Services Corporation will post 4.89 earnings per share for the current year.

Stewart Information Services Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were given a $0.55 dividend. This is a boost from Stewart Information Services's previous quarterly dividend of $0.5250. The ex-dividend date was Tuesday, September 15th. This represents a $2.20 annualized dividend and a dividend yield of 5.1%. Stewart Information Services's payout ratio is currently 55.14%.

Stewart Information Services News Summary

Here are the key news stories impacting Stewart Information Services this week:

• Positive Sentiment: Three directors purchased a combined 6,000 shares for approximately $283,700 on October 23. Thomas Apel, William Corey Jr. and C. Allen Bradley Jr. each bought 2,000 shares, increasing their holdings by roughly 4.5%, 17.5% and 8.0%, respectively. The purchases may bolster confidence that insiders view STC as undervalued following its recent decline. Thomas Apel insider purchase William Corey insider purchase C. Allen Bradley insider purchase
• Neutral Sentiment: Stephens lowered its STC price target from $80 to $70 but maintained an “overweight” rating. The revised target still indicates considerable potential upside from recent trading levels, although the reduction reflects a more cautious valuation outlook. Stephens STC rating
• Negative Sentiment: Stewart Information Services’ latest quarterly results missed expectations: adjusted earnings were $1.33 per share versus the $1.50 consensus estimate, while revenue of $900.7 million was slightly below forecasts. Earnings also declined from $1.64 per share in the year-earlier quarter, highlighting near-term profitability pressure.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bank of America Corp DE purchased a new stake in Stewart Information Services in the 2nd quarter worth approximately $10,991,000. Deutsche Bank AG acquired a new stake in shares of Stewart Information Services during the 2nd quarter valued at $2,191,000. The Manufacturers Life Insurance Company purchased a new position in shares of Stewart Information Services during the 2nd quarter valued at $987,000. BlackRock Inc. purchased a new position in shares of Stewart Information Services during the 2nd quarter valued at $347,274,000. Finally, Empowered Funds LLC purchased a new stake in shares of Stewart Information Services during the second quarter worth $8,211,000. 96.90% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have issued reports on STC. Zacks Research downgraded shares of Stewart Information Services from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 22nd. Weiss Ratings cut Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, October 19th. 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. Citizens Jmp dropped their price target on Stewart Information Services from $80.00 to $75.00 and set a "market outperform" rating on the stock in a research report on Monday, October 12th. Finally, Stephens reduced their price objective on Stewart Information Services from $80.00 to $70.00 and set an "overweight" rating for the company in a research note on Monday. Four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Stewart Information Services has a consensus rating of "Hold" and an average target price of $75.75.

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.

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