Stewart Information Services (NYSE:STC) Stock Price Down 6.6% - Should You Sell?

Key Points

• Stewart Information Services shares fell 6.6% to about $53.00, trading below both their 50-day and 200-day moving averages. The company has a $1.61 billion market capitalization and a price-to-earnings ratio of 11.56.
• Analyst sentiment remains generally positive but has weakened, with recent downgrades to “Hold” and “Market Perform.” The consensus rating is “Moderate Buy,” with an average price target of $81.50.
• Stewart missed quarterly earnings expectations, reporting $1.39 in EPS versus $1.63 expected, although revenue rose 24.5% year over year. The company increased its quarterly dividend to $0.55 per share, representing a 4.2% annualized yield.

Stewart Information Services Corporation (NYSE:STC - Get Free Report)'s stock price traded down 6.6% during trading on Wednesday. The stock traded as low as $53.97 and last traded at $53.0040. Approximately 168,056 shares were traded during trading, a decline of 28% from the average session volume of 232,874 shares. The stock had previously closed at $56.76.

Wall Street Analyst Weigh In

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

Stewart Information Services Trading Down 7.0%

The business's 50 day simple moving average is $66.76 and its 200 day simple moving average is $66.31. The stock has a market cap of $1.61 billion, a price-to-earnings ratio of 11.56 and a beta of 0.97. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 0.39.

Stewart Information Services (NYSE:STC - Get Free Report) last released its quarterly earnings data 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 firm 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%.The firm's revenue for the quarter was up 24.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.34 earnings per share. On average, research analysts expect that Stewart Information Services Corporation will post 5.26 EPS for the current fiscal year.

Stewart Information Services Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 4.2%. This is a boost from Stewart Information Services's previous quarterly dividend of $0.5250. The ex-dividend date of this dividend is Tuesday, September 15th. Stewart Information Services's dividend payout ratio (DPR) is presently 48.25%.

Insider Transactions at Stewart Information Services

In other news, insider Brian Glaze sold 1,500 shares of the firm'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 value of $103,740.00. Following the completion of the sale, the insider directly owned 11,784 shares of the company's stock, valued at $814,981.44. This trade represents a 11.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 2.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Stewart Information Services during the 2nd quarter valued at $347,274,000. Capital International Investors raised its position in shares of Stewart Information Services by 10.2% in the fourth quarter. Capital International Investors now owns 842,077 shares of the insurance provider's stock valued at $59,164,000 after purchasing an additional 77,618 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Stewart Information Services in the second quarter valued at about $17,759,000. Bank of America Corp DE lifted its stake in shares of Stewart Information Services by 1.2% during the 1st quarter. Bank of America Corp DE now owns 215,213 shares of the insurance provider's stock worth $13,253,000 after buying an additional 2,631 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its holdings in shares of Stewart Information Services by 10.0% during the 1st quarter. Principal Financial Group Inc. now owns 146,870 shares of the insurance provider's stock worth $9,044,000 after buying an additional 13,317 shares during the period. 96.90% of the stock is owned by institutional investors and hedge funds.

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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