Stewart Information Services (NYSE:STC) Sets New 12-Month Low - Here's What Happened

Key Points

• Stewart Information Services shares hit a new 52-week low, falling to $57.00 and trading well below their 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans positive: the stock has a “Moderate Buy” consensus rating and an average price target of $81.50, despite recent rating downgrades and target cuts.
• The company missed quarterly earnings expectations, reporting $1.39 in EPS versus $1.63 expected, but revenue rose 24.5% year over year. Stewart also increased its quarterly dividend to $0.55 per share, yielding approximately 3.9%.

Shares of Stewart Information Services Corporation (NYSE:STC - Get Free Report) hit a new 52-week low on Tuesday. The stock traded as low as $57.00 and last traded at $57.1570, with a volume of 7609 shares traded. The stock had previously closed at $57.54.

Analysts Set New Price Targets

STC has been the subject of a number of research analyst reports. Wall Street Zen cut Stewart Information Services from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Keefe, Bruyette & Woods lowered Stewart Information Services from an "outperform" rating to a "market perform" rating and dropped their price target for the stock from $77.00 to $71.00 in a research note on Monday, July 27th. Benchmark assumed coverage on shares of Stewart Information Services in a report on Tuesday, July 21st. They set a "buy" rating and a $87.00 price objective on the stock. Zacks Research upgraded shares of Stewart Information Services from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 22nd. Finally, Weiss Ratings lowered shares of Stewart Information Services from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, September 18th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, Stewart Information Services currently has an average rating of "Moderate Buy" and an average target price of $81.50.

Stewart Information Services Price Performance

The company has a market cap of $1.74 billion, a PE ratio of 12.48 and a beta of 0.97. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.98 and a current ratio of 1.98. The stock has a 50 day moving average of $67.03 and a 200-day moving average of $66.35.

Stewart Information Services (NYSE:STC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The insurance provider reported $1.39 earnings per share for the quarter, missing the consensus estimate of $1.63 by ($0.24). The company had revenue of $895.80 million for the quarter, compared to analyst estimates of $838.07 million. Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%.Stewart Information Services's revenue for the quarter was up 24.5% on a year-over-year basis. During the same period in the prior year, the business posted $1.34 earnings per share. Equities analysts predict that Stewart Information Services Corporation will post 5.26 earnings per share for the current year.

Stewart Information Services Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $0.55 per share. The ex-dividend date is Tuesday, September 15th. This represents a $2.20 annualized dividend and a dividend yield of 3.9%. This is a boost from Stewart Information Services's previous quarterly dividend of $0.5250. Stewart Information Services's payout ratio is presently 48.25%.

Insider Buying and Selling at Stewart Information Services

In other news, insider Brian Glaze sold 1,500 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $69.16, for a total value of $103,740.00. Following the completion of the sale, the insider owned 11,784 shares of the company's stock, valued at $814,981.44. This represents a 11.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 2.94% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in STC. BlackRock Inc. purchased a new stake in shares of Stewart Information Services in the 2nd quarter valued at $347,274,000. Bank of New York Mellon Corp purchased a new position in Stewart Information Services during the 2nd quarter valued at about $17,759,000. Bank of America Corp DE purchased a new position in Stewart Information Services during the 2nd quarter valued at about $10,991,000. Heartland Advisors Inc. acquired a new position in Stewart Information Services in the 2nd quarter valued at about $8,252,000. Finally, Empowered Funds LLC acquired a new position in Stewart Information Services in the 2nd quarter valued at about $8,211,000. 96.90% of the stock is currently owned by hedge funds and other institutional investors.

About Stewart Information Services

Stewart Information Services Corporation is a title insurance and real estate services company headquartered in Houston, Texas. Through its Stewart Title operations, the company provides title insurance, escrow and closing services, and related services that help protect property buyers, lenders and other participants in real estate transactions from title defects and ownership-related risks.

The company also offers valuation and appraisal services, mortgage services, and technology-enabled solutions for the real estate and mortgage industries.

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