Stewart Information Services (NYSE:STC) Sees Strong Trading Volume - What's Next?

Key Points

• Trading volume surged 559% to nearly 1.72 million shares, while Stewart Information Services traded around $45.19, well below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: the stock has an average “Hold” rating and a consensus price target of $75.75, following several target-price and rating downgrades.
• The company missed quarterly EPS expectations, reporting $1.33 versus $1.50 anticipated, but increased its quarterly dividend to $0.55, representing a 4.9% annualized yield; insiders also purchased 10,000 shares over the past 90 days.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) shares saw strong trading volume on Thursday. 1,724,979 shares were traded during mid-day trading, an increase of 559% from the average daily volume of 261,846 shares. The stock last traded at $45.1940 and had previously closed at $44.30.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on STC. Weiss Ratings lowered Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, October 19th. Keefe, Bruyette & Woods lowered Stewart Information Services from an "outperform" rating to a "market perform" rating and lowered their target price for the stock from $77.00 to $71.00 in a research report on Monday, July 27th. Citizens Jmp dropped their target price on Stewart Information Services from $80.00 to $75.00 and set a "market outperform" rating on the stock in a report on Monday, October 12th. Stephens reduced their price objective on shares of Stewart Information Services from $80.00 to $70.00 and set an "overweight" rating for the company in a research report on Monday. Finally, Wall Street Zen lowered Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $75.75.

Stewart Information Services Stock Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.98 and a current ratio of 1.85. The company has a market capitalization of $1.37 billion, a PE ratio of 11.28 and a beta of 1.04. The business's 50-day moving average is $59.23 and its 200-day moving average is $64.95.

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

Stewart Information Services Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders 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 of this dividend was Tuesday, September 15th. This represents a $2.20 dividend on an annualized basis and a yield of 4.9%. Stewart Information Services's payout ratio is presently 55.14%.

Insider Buying and Selling

In other news, Director Thomas G. Apel bought 2,000 shares of the company's stock in a transaction on Friday, October 23rd. The shares were acquired at an average cost of $47.73 per share, with a total value of $95,460.00. Following the completion of the transaction, the director owned 46,182 shares of the company's stock, valued at approximately $2,204,266.86. This trade represents a 4.53% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Frederick Eppinger bought 3,000 shares of the business's stock in a transaction that occurred on Monday, October 26th. The shares were acquired at an average price of $44.45 per share, with a total value of $133,350.00. Following the completion of the transaction, the chief executive officer directly owned 173,675 shares of the company's stock, valued at $7,719,853.75. This trade represents a 1.76% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased 10,000 shares of company stock valued at $460,960 in the last 90 days. Insiders own 2.94% of the company's stock.

Institutional Investors Weigh In On Stewart Information Services

Institutional investors and hedge funds have recently bought and sold shares of the business. Arizona State Retirement System boosted its stake in shares of Stewart Information Services by 2.4% during the second quarter. Arizona State Retirement System now owns 8,417 shares of the insurance provider's stock valued at $556,000 after purchasing an additional 198 shares in the last quarter. Maryland State Retirement & Pension System raised its position in shares of Stewart Information Services by 7.0% in the 1st quarter. Maryland State Retirement & Pension System now owns 4,378 shares of the insurance provider's stock valued at $270,000 after purchasing an additional 287 shares during the last quarter. Illinois Municipal Retirement Fund lifted its position in Stewart Information Services by 1.9% during the 1st quarter. Illinois Municipal Retirement Fund now owns 16,116 shares of the insurance provider's stock worth $992,000 after acquiring an additional 308 shares during the period. The Manufacturers Life Insurance Company boosted its position in Stewart Information Services by 2.8% in the first quarter. The Manufacturers Life Insurance Company now owns 13,253 shares of the insurance provider's stock valued at $816,000 after buying an additional 359 shares during the last quarter. Finally, Caitlin John LLC acquired a new stake in shares of Stewart Information Services in the second quarter worth $28,000. 96.90% of the stock is owned by institutional investors.

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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