Stewart Information Services Corporation (NYSE:STC) Sees Large Decline in Short Interest

Key Points

• Stewart Information Services Corporation experienced a 30.4% decline in short interest, dropping from 898,400 to 625,300 shares as of September 30th.
• The company reported strong quarterly earnings of $1.64 EPS, exceeding analyst expectations, with revenues increasing 19.3% year-over-year to $791.3 million.
• Stewart Information Services announced a quarterly dividend increase to $0.525 per share, reflecting an annualized dividend yield of 2.9%.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) was the target of a large decline in short interest in the month of September. As of September 30th, there was short interest totaling 625,300 shares, a decline of 30.4% from the September 15th total of 898,400 shares. Based on an average daily trading volume, of 182,200 shares, the short-interest ratio is currently 3.4 days. Based on an average daily trading volume, of 182,200 shares, the short-interest ratio is currently 3.4 days.

Stewart Information Services Price Performance

Shares of STC stock traded down $2.76 during midday trading on Thursday, reaching $72.44. 529,874 shares of the company were exchanged, compared to its average volume of 182,248. Stewart Information Services has a 12 month low of $56.39 and a 12 month high of $78.44. The company has a market cap of $2.03 billion, a P/E ratio of 23.29 and a beta of 0.96. The company's 50 day moving average price is $72.20 and its two-hundred day moving average price is $66.83. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.91 and a current ratio of 1.91.

Stewart Information Services (NYSE:STC - Get Free Report) last released its quarterly earnings results on Wednesday, October 22nd. The insurance provider reported $1.64 EPS for the quarter, topping analysts' consensus estimates of $1.42 by $0.22. Stewart Information Services had a net margin of 3.29% and a return on equity of 7.71%. The company had revenue of $791.30 million for the quarter, compared to the consensus estimate of $737.30 million. During the same period in the previous year, the firm earned $1.07 EPS. Stewart Information Services's revenue was up 19.3% on a year-over-year basis. On average, sell-side analysts expect that Stewart Information Services will post 6.29 earnings per share for the current year.

Stewart Information Services Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th were issued a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Tuesday, September 16th. This is an increase from Stewart Information Services's previous quarterly dividend of $0.50. Stewart Information Services's payout ratio is presently 67.52%.

Analysts Set New Price Targets

A number of research analysts have issued reports on STC shares. Wall Street Zen raised shares of Stewart Information Services from a "hold" rating to a "buy" rating in a research note on Sunday. Weiss Ratings reissued a "buy (b-)" rating on shares of Stewart Information Services in a research note on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods boosted their target price on shares of Stewart Information Services from $72.00 to $73.00 and gave the company a "market perform" rating in a research note on Monday, July 28th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $77.50.

Insider Activity

In other news, insider Brad Rable sold 5,694 shares of Stewart Information Services stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $65.32, for a total value of $371,932.08. Following the completion of the transaction, the insider directly owned 23,872 shares of the company's stock, valued at approximately $1,559,319.04. The trade was a 19.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO David C. Hisey sold 2,224 shares of Stewart Information Services stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $64.39, for a total transaction of $143,203.36. Following the completion of the transaction, the chief financial officer directly owned 58,359 shares of the company's stock, valued at $3,757,736.01. This trade represents a 3.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.50% of the company's stock.

Institutional Trading of Stewart Information Services

Hedge funds and other institutional investors have recently made changes to their positions in the business. Principal Financial Group Inc. raised its holdings in shares of Stewart Information Services by 2.8% in the 1st quarter. Principal Financial Group Inc. now owns 138,212 shares of the insurance provider's stock worth $9,861,000 after purchasing an additional 3,821 shares in the last quarter. Allspring Global Investments Holdings LLC raised its holdings in shares of Stewart Information Services by 1.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,682,009 shares of the insurance provider's stock worth $120,600,000 after purchasing an additional 30,160 shares in the last quarter. Pinnacle Financial Partners Inc bought a new stake in shares of Stewart Information Services in the 1st quarter worth approximately $283,000. Farther Finance Advisors LLC raised its holdings in shares of Stewart Information Services by 2,735.8% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,503 shares of the insurance provider's stock worth $98,000 after purchasing an additional 1,450 shares in the last quarter. Finally, Victory Capital Management Inc. raised its holdings in shares of Stewart Information Services by 18.6% in the 1st quarter. Victory Capital Management Inc. now owns 990,168 shares of the insurance provider's stock worth $70,648,000 after purchasing an additional 155,210 shares in the last quarter. 96.90% of the stock is currently owned by institutional investors.

About Stewart Information Services

Stewart Information Services Corporation, through its subsidiaries, provides title insurance and real estate transaction related services in the United States and internationally. The company involves in searching, examining, closing, and insuring the condition of the title to real property. It also offers home and personal insurance services; services for tax-deferred exchanges; and digital customer engagement platform services.

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