Stewart Information Services (NYSE:STC) CEO Purchases $133,350.00 in Stock

Key Points

• CEO Frederick Eppinger bought 3,000 STC shares for $133,350, increasing his direct ownership by 1.76% to 173,675 shares.
• Stewart Information Services’ latest quarterly results fell short of expectations, with EPS of $1.33 versus the $1.50 consensus and revenue of $900.7 million versus $903.67 million expected.
• The company raised its quarterly dividend to $0.55 per share, implying an annualized dividend of $2.20 and a yield of approximately 5.1%; analysts maintain a consensus “Hold” rating with a $75.75 average price target.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) CEO Frederick Eppinger acquired 3,000 shares of the stock in a transaction dated Monday, October 26th. The shares were purchased at an average price of $44.45 per share, for a total transaction of $133,350.00. Following the completion of the purchase, the chief executive officer directly owned 173,675 shares in the company, valued at $7,719,853.75. The trade was a 1.76% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website.

Stewart Information Services Stock Performance

Shares of NYSE STC traded up $0.51 during mid-day trading on Tuesday, reaching $43.47. 876,046 shares of the company were exchanged, compared to its average volume of 255,545. Stewart Information Services Corporation has a twelve month low of $42.73 and a twelve month high of $78.61. The stock has a market capitalization of $1.33 billion, a P/E ratio of 10.89 and a beta of 1.04. The company's 50-day simple moving average is $60.20 and its 200-day simple moving average is $65.20. The company has a quick ratio of 1.98, a current ratio of 1.85 and a debt-to-equity ratio of 0.39.

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

Stewart Information Services Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 5.1%. This is a boost from Stewart Information Services's previous quarterly dividend of $0.5250. The ex-dividend date was Tuesday, September 15th. Stewart Information Services's dividend payout ratio (DPR) is presently 55.14%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on STC. Weiss Ratings lowered shares of Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, October 19th. 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 note on Monday, October 12th. Stephens cut their price target on Stewart Information Services from $80.00 to $70.00 and set an "overweight" rating on the stock in a report on Monday. Keefe, Bruyette & Woods cut Stewart Information Services from an "outperform" rating to a "market perform" rating and reduced their price objective for the company from $77.00 to $71.00 in a research note on Monday, July 27th. Finally, Citigroup restated a "market outperform" rating on shares of Stewart Information Services in a report on Monday, October 12th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $75.75.

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 Investors Weigh In On Stewart Information Services

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new position in Stewart Information Services during the 2nd quarter valued at about $347,274,000. Bank of New York Mellon Corp bought a new position in shares of Stewart Information Services in the second quarter valued at approximately $17,759,000. Bank of America Corp DE lifted its holdings in shares of Stewart Information Services by 1.2% in the first quarter. Bank of America Corp DE now owns 215,213 shares of the insurance provider's stock valued at $13,253,000 after purchasing an additional 2,631 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Stewart Information Services by 10.0% in the first quarter. Principal Financial Group Inc. now owns 146,870 shares of the insurance provider's stock valued at $9,044,000 after purchasing an additional 13,317 shares in the last quarter. Finally, Heartland Advisors Inc. purchased a new position in shares of Stewart Information Services during the second quarter valued at approximately $8,252,000. Institutional investors and hedge funds own 96.90% of the company's stock.

About Stewart Information Services

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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