Stewart Information Services (NYSE:STC) Sets New 52-Week Low - Here's Why

Key Points

• Stewart Information Services hit a new 52-week low, falling 4.6% to around $42.40 during Thursday trading, compared with its prior close of $44.12.
• The company’s latest quarter came in below expectations: earnings were $1.33 per share versus estimates of $1.50, while revenue was $900.7 million versus forecasts of $903.7 million.
• Analyst opinions are mixed: Zacks downgraded the stock to “strong sell,” while the overall consensus remains “Hold” with a $75.75 price target. The company also raised its quarterly dividend to $0.55, a 5.2% annualized yield at the reported share price.

Stewart Information Services Corporation (NYSE:STC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $42.65 and last traded at $42.40, with a volume of 114,776 shares traded. The stock had previously closed at $44.12.

Wall Street Analyst Weigh In

STC has been the topic of several recent research reports. Zacks Research lowered Stewart Information Services from a "hold" rating to a "strong sell" rating in a report on Thursday, October 22nd. Citizens Jmp reduced their price target on Stewart Information Services from $80.00 to $75.00 and set a "market outperform" rating for the company in a research report on Monday, October 12th. Citigroup reissued a "market outperform" rating on shares of Stewart Information Services in a research note on Monday, October 12th. Benchmark assumed coverage on Stewart Information Services in a research note on Tuesday, July 21st. They issued a "buy" rating and a $87.00 price objective on the stock. Finally, Weiss Ratings lowered Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, October 19th. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $75.75.

Stewart Information Services Stock Down 4.6%

The stock has a market cap of $1.28 billion, a P/E ratio of 10.52 and a beta of 1.02. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.39. The firm's fifty day moving average is $54.53 and its 200 day moving average is $63.91.

Stewart Information Services (NYSE:STC - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $900.70 million for the quarter, compared to the consensus estimate 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 last year, the company earned $1.64 earnings per share. As a group, equities research analysts forecast that Stewart Information Services Corporation will post 4.68 EPS for the current year.

Stewart Information Services Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a $0.55 dividend. This is an increase 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 5.2%. Stewart Information Services's payout ratio is 55.14%.

Insider Buying and Selling

In other news, insider Brian Glaze sold 1,500 shares of the company's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $69.16, for a total transaction of $103,740.00. Following the completion of the transaction, the insider directly owned 11,784 shares in the company, valued at $814,981.44. The trade was a 11.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director C Allen Bradley, Jr. acquired 2,000 shares of Stewart Information Services stock in a transaction dated Friday, October 23rd. The stock was acquired at an average cost of $47.30 per share, with a total value of $94,600.00. Following the completion of the transaction, the director directly owned 27,034 shares of the company's stock, valued at $1,278,708.20. This trade represents a 7.99% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 10,000 shares of company stock worth $460,960. 2.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Stewart Information Services

Several hedge funds and other institutional investors have recently modified their holdings of STC. Caitlin John LLC bought a new stake in Stewart Information Services in the 2nd quarter valued at $28,000. Parallel Advisors LLC increased its holdings in shares of Stewart Information Services by 423.5% during the 3rd quarter. Parallel Advisors LLC now owns 602 shares of the insurance provider's stock worth $30,000 after purchasing an additional 487 shares during the period. Integrated Wealth Concepts LLC bought a new position in shares of Stewart Information Services during the 2nd quarter worth about $42,000. Heritage Family Offices LLP acquired a new position in shares of Stewart Information Services during the third quarter valued at about $37,000. Finally, Global Retirement Partners LLC raised its position in shares of Stewart Information Services by 488.7% during the third quarter. Global Retirement Partners LLC now owns 889 shares of the insurance provider's stock valued at $44,000 after buying an additional 738 shares during the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

About Stewart Information Services

Stewart Information Services Corporation is a Houston-based provider of title insurance and real estate transaction services. Its business includes issuing title insurance policies and supporting property transfers through services such as title searches, escrow, closing and settlement. The company serves homebuyers, sellers, real estate professionals, mortgage lenders and other participants in property transactions. It also provides related services, including property information and services supporting mortgage lending and real estate operations.

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