Stewart Information Services (NYSE:STC) Issues Quarterly Earnings Results

Key Points

• Stewart Information Services reported quarterly earnings of $1.64 per share, exceeding analysts' estimates of $1.42, highlighting strong performance with a net margin of 3.29%.
• The company declared an increased quarterly dividend of $0.525, up from $0.50, reflecting a positive dividend yield of 2.8%.
• Analysts have given Stewart a "Moderate Buy" rating, with a consensus target price of $77.50, indicating potential for further growth.

Stewart Information Services (NYSE:STC - Get Free Report) posted its quarterly earnings results on Wednesday. The insurance provider reported $1.64 earnings per share for the quarter, topping analysts' consensus estimates of $1.42 by $0.22, Zacks reports. Stewart Information Services had a net margin of 3.29% and a return on equity of 7.71%.

Stewart Information Services Trading Up 4.9%

STC traded up $3.48 on Wednesday, hitting $74.98. The company had a trading volume of 527,479 shares, compared to its average volume of 180,516. The company has a market cap of $2.10 billion, a PE ratio of 24.11 and a beta of 0.96. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.31. The business's fifty day simple moving average is $72.15 and its 200 day simple moving average is $66.77. Stewart Information Services has a 12-month low of $56.39 and a 12-month high of $78.44.

Stewart Information Services Increases Dividend

The firm also recently declared 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 2.8%. The ex-dividend date of this dividend was Tuesday, September 16th. This is a positive change from Stewart Information Services's previous quarterly dividend of $0.50. Stewart Information Services's payout ratio is 67.52%.

Insider Buying and Selling at Stewart Information Services

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

Institutional Trading of Stewart Information Services

Institutional investors and hedge funds have recently made changes to their positions in the business. Bank of America Corp DE grew its holdings in shares of Stewart Information Services by 4.6% in the second quarter. Bank of America Corp DE now owns 245,982 shares of the insurance provider's stock worth $16,013,000 after purchasing an additional 10,835 shares during the last quarter. Royal Bank of Canada boosted its position in Stewart Information Services by 2.4% in the 1st quarter. Royal Bank of Canada now owns 128,363 shares of the insurance provider's stock valued at $9,158,000 after buying an additional 3,022 shares during the period. Public Sector Pension Investment Board boosted its position in Stewart Information Services by 8.2% in the 2nd quarter. Public Sector Pension Investment Board now owns 95,201 shares of the insurance provider's stock valued at $6,198,000 after buying an additional 7,199 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Stewart Information Services by 10.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 85,522 shares of the insurance provider's stock worth $6,102,000 after acquiring an additional 7,923 shares in the last quarter. Finally, Jane Street Group LLC increased its position in shares of Stewart Information Services by 607.8% during the first quarter. Jane Street Group LLC now owns 50,631 shares of the insurance provider's stock worth $3,613,000 after acquiring an additional 43,478 shares during the period. 96.90% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

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

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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