Old Republic International (NYSE:ORI) Posts Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Old Republic International reported quarterly EPS of $0.76, missing analysts’ estimate of $0.78 by $0.02. Revenue came in at $2.50 billion, topping expectations of $2.38 billion and rising 5.2% year over year.
• The stock was essentially flat after the report, trading down 0.1% to $41.56, while the company continued to show solid profitability with a 15.71% return on equity and a 10.83% net margin.
• The insurer also paid a quarterly dividend of $0.315 per share, equal to an annualized yield of about 3.0%, and analysts currently rate the stock a Moderate Buy with a consensus target price of $42.00.

Old Republic International (NYSE:ORI - Get Free Report) released its earnings results on Thursday. The insurance provider reported $0.76 earnings per share for the quarter, missing analysts' consensus estimates of $0.78 by ($0.02), Zacks reports. The firm had revenue of $2.50 billion for the quarter, compared to analysts' expectations of $2.38 billion. Old Republic International had a return on equity of 15.71% and a net margin of 10.83%.The firm's quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.81 earnings per share.

Old Republic International Stock Down 0.1%

Shares of NYSE:ORI traded down $0.04 during trading on Thursday, hitting $41.56. 402,662 shares of the company were exchanged, compared to its average volume of 1,706,633. The stock has a market capitalization of $10.09 billion, a P/E ratio of 11.12 and a beta of 0.58. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.23 and a quick ratio of 0.23. Old Republic International has a 12-month low of $35.60 and a 12-month high of $46.76. The firm's 50 day moving average price is $39.76 and its 200-day moving average price is $40.54.

Old Republic International Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, June 5th were given a dividend of $0.315 per share. This represents a $1.26 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Friday, June 5th. Old Republic International's payout ratio is currently 33.78%.

Analyst Ratings Changes

Several research analysts have commented on the stock. Raymond James Financial set a $44.00 price target on shares of Old Republic International in a report on Monday, April 27th. Piper Sandler raised their price objective on shares of Old Republic International from $38.00 to $40.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Old Republic International in a research report on Wednesday, July 8th. Finally, Zacks Research raised shares of Old Republic International from a "strong sell" rating to a "hold" rating in a research report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $42.00.

Insider Activity at Old Republic International

In other Old Republic International news, SVP Carolyn Monroe sold 13,330 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $38.76, for a total transaction of $516,670.80. Following the transaction, the senior vice president owned 32,261 shares of the company's stock, valued at approximately $1,250,436.36. This trade represents a 29.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.32% of the stock is owned by company insiders.

Institutional Investors Weigh In On Old Republic International

Hedge funds have recently made changes to their positions in the business. JPL Wealth Management LLC acquired a new stake in Old Republic International during the 3rd quarter worth approximately $27,000. Wilmington Savings Fund Society FSB increased its holdings in shares of Old Republic International by 28.1% in the third quarter. Wilmington Savings Fund Society FSB now owns 1,013 shares of the insurance provider's stock valued at $43,000 after purchasing an additional 222 shares during the period. Headlands Technologies LLC purchased a new stake in shares of Old Republic International during the second quarter worth approximately $46,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Old Republic International during the fourth quarter worth approximately $46,000. Finally, Danske Bank A S purchased a new stake in shares of Old Republic International during the third quarter worth approximately $51,000. Institutional investors and hedge funds own 70.92% of the company's stock.

About Old Republic International

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety.

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