Old Republic International (NYSE:ORI) Releases Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Key Points

• Old Republic reported Q earnings of $0.68 per share, missing expectations of $0.79 and down from $0.81 a year earlier, while revenue rose 6.7% YoY and the company posted a 16.21% ROE with a 10.24% net margin.
• Dividend increase: the company raised its quarterly payout to $0.315 (annualized $1.26) from $0.29, implying a 3.0% yield and a 37.17% payout ratio.
• Shares fell to $41.60 on the news (market cap $10.13B, PE 12.27), analysts' consensus is a "Moderate Buy" with a $42.50 target, and insider/institution activity is notable — a director bought shares while institutions own about 70.9% of the stock.

Old Republic International (NYSE:ORI - Get Free Report) issued its quarterly earnings data on Thursday. The insurance provider reported $0.68 EPS for the quarter, missing the consensus estimate of $0.79 by ($0.11), Zacks reports. Old Republic International had a return on equity of 16.21% and a net margin of 10.24%.During the same period in the prior year, the business posted $0.81 earnings per share. The firm's revenue was up 6.7% compared to the same quarter last year.

Old Republic International Price Performance

Shares of NYSE ORI traded down $0.47 during mid-day trading on Thursday, reaching $41.60. The company's stock had a trading volume of 631,641 shares, compared to its average volume of 1,859,301. The firm has a market capitalization of $10.13 billion, a PE ratio of 12.27 and a beta of 0.72. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.27 and a quick ratio of 0.27. The stock has a fifty day moving average of $41.04 and a two-hundred day moving average of $42.25. Old Republic International has a 52 week low of $35.60 and a 52 week high of $46.76.

Old Republic International Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 19th. Stockholders of record on Monday, March 9th were paid a $0.315 dividend. This represents a $1.26 dividend on an annualized basis and a dividend yield of 3.0%. This is a positive change from Old Republic International's previous quarterly dividend of $0.29. The ex-dividend date of this dividend was Monday, March 9th. Old Republic International's dividend payout ratio is currently 37.17%.

Insider Transactions at Old Republic International

In other Old Republic International news, Director John Eric Smith purchased 1,135 shares of Old Republic International stock in a transaction dated Monday, March 2nd. The shares were purchased at an average cost of $43.10 per share, for a total transaction of $48,918.50. Following the completion of the acquisition, the director owned 4,276 shares in the company, valued at $184,295.60. This represents a 36.13% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Carolyn Monroe sold 5,526 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $39.28, for a total value of $217,061.28. Following the completion of the sale, the senior vice president owned 27,875 shares in the company, valued at approximately $1,094,930. The trade was a 16.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.32% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Old Republic International

Several hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC raised its holdings in shares of Old Republic International by 30.7% in the third quarter. AQR Capital Management LLC now owns 7,553,963 shares of the insurance provider's stock worth $319,155,000 after buying an additional 1,774,807 shares during the period. GQG Partners LLC purchased a new stake in shares of Old Republic International in the fourth quarter worth approximately $155,960,000. Raymond James Financial Inc. raised its holdings in shares of Old Republic International by 55.0% in the fourth quarter. Raymond James Financial Inc. now owns 3,234,373 shares of the insurance provider's stock worth $147,650,000 after buying an additional 1,147,102 shares during the period. First Trust Advisors LP raised its holdings in shares of Old Republic International by 2.2% in the fourth quarter. First Trust Advisors LP now owns 2,382,451 shares of the insurance provider's stock worth $108,735,000 after buying an additional 50,874 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Old Republic International by 2.5% in the fourth quarter. Invesco Ltd. now owns 2,161,931 shares of the insurance provider's stock worth $98,671,000 after buying an additional 53,298 shares during the period. 70.92% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have issued reports on ORI shares. Zacks Research raised Old Republic International from a "strong sell" rating to a "hold" rating in a report on Monday, March 23rd. Weiss Ratings lowered Old Republic International from a "buy (a-)" rating to a "buy (b+)" rating in a report on Friday, March 27th. Finally, Piper Sandler reaffirmed a "neutral" rating and issued a $38.00 price objective (down from $51.00) on shares of Old Republic International in a research note on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $42.50.

Old Republic International Company Profile

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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