Stewart Information Services (NYSE:STC) Shares Pass Above 200 Day Moving Average - Here's Why

Key Points

• Stewart Information Services (NYSE:STC) shares moved above their 200-day moving average on Thursday, trading as high as $68.47 before last changing hands near $67.92.
• Wall Street sentiment is generally positive, with four analysts rating the stock a Buy and a consensus Moderate Buy target of $81.67. Recent calls included upgrades from Wall Street Zen and Weiss Ratings, though one firm trimmed its price target.
• The company recently posted better-than-expected earnings, reporting $0.78 EPS versus $0.52 expected and revenue of $778.4 million, up 27.7% year over year. It also paid a quarterly dividend of $0.525, equal to a 3.1% annual yield.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) shares passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $67.08 and traded as high as $68.47. Stewart Information Services shares last traded at $67.9240, with a volume of 182,177 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on STC shares. Wall Street Zen upgraded Stewart Information Services from a "hold" rating to a "buy" rating in a report on Saturday, April 25th. Weiss Ratings upgraded shares of Stewart Information Services from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, June 5th. Stephens restated an "overweight" rating and issued a $88.00 price objective on shares of Stewart Information Services in a research note on Monday, May 18th. Keefe, Bruyette & Woods decreased their price objective on shares of Stewart Information Services from $81.00 to $77.00 and set an "outperform" rating for the company in a report on Thursday, June 25th. Finally, Zacks Research upgraded shares of Stewart Information Services to a "hold" rating in a research note on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $81.67.

Stewart Information Services Stock Up 0.5%

The company has a current ratio of 2.12, a quick ratio of 2.12 and a debt-to-equity ratio of 0.39. The firm has a market cap of $2.07 billion, a price-to-earnings ratio of 15.16 and a beta of 0.99. The firm has a 50-day moving average of $67.23 and a two-hundred day moving average of $67.08.

Stewart Information Services (NYSE:STC - Get Free Report) last released its earnings results on Wednesday, April 22nd. The insurance provider reported $0.78 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.52 by $0.26. The firm had revenue of $778.40 million for the quarter, compared to analyst estimates of $730.43 million. Stewart Information Services had a return on equity of 10.07% and a net margin of 4.19%.The company's revenue was up 27.7% on a year-over-year basis. During the same quarter last year, the firm posted $0.25 EPS. As a group, sell-side analysts predict that Stewart Information Services Corporation will post 5.8 earnings per share for the current fiscal year.

Stewart Information Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a $0.525 dividend. This represents a $2.10 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, June 15th. Stewart Information Services's dividend payout ratio is currently 46.87%.

Insider Activity at Stewart Information Services

In related news, CFO David C. Hisey sold 10,992 shares of the business's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $71.28, for a total transaction of $783,509.76. Following the transaction, the chief financial officer owned 61,929 shares of the company's stock, valued at approximately $4,414,299.12. The trade was a 15.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director C Allen Bradley, Jr. bought 1,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were bought at an average price of $63.87 per share, with a total value of $63,870.00. Following the completion of the purchase, the director owned 25,034 shares in the company, valued at approximately $1,598,921.58. The trade was a 4.16% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 2.94% of the stock is currently owned by corporate insiders.

Institutional Trading of Stewart Information Services

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in shares of Stewart Information Services by 4.6% during the fourth quarter. Vanguard Group Inc. now owns 2,044,758 shares of the insurance provider's stock valued at $143,665,000 after buying an additional 90,233 shares during the last quarter. Capital International Investors grew its position in Stewart Information Services by 10.2% during the fourth quarter. Capital International Investors now owns 842,077 shares of the insurance provider's stock worth $59,164,000 after buying an additional 77,618 shares in the last quarter. Millennium Management LLC grew its position in Stewart Information Services by 75.9% during the fourth quarter. Millennium Management LLC now owns 701,148 shares of the insurance provider's stock worth $49,263,000 after buying an additional 302,623 shares in the last quarter. Geode Capital Management LLC increased its stake in Stewart Information Services by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 663,625 shares of the insurance provider's stock valued at $46,634,000 after acquiring an additional 2,234 shares during the period. Finally, Cooke & Bieler LP increased its stake in Stewart Information Services by 2.1% during the fourth quarter. Cooke & Bieler LP now owns 563,003 shares of the insurance provider's stock valued at $39,557,000 after acquiring an additional 11,484 shares during the period. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Stewart Information Services Company Profile

Stewart Information Services Corporation NYSE: STC is a publicly traded provider of title insurance and real estate transaction services. The company underwrites title insurance policies for residential and commercial properties, offering lenders and property owners protection against title defects and liens. Beyond title insurance, Stewart delivers a range of ancillary services, including closing and escrow administration, property valuation, and risk mitigation solutions designed to streamline the mortgage process and reduce operational complexity for clients.

In addition to core title and settlement services, Stewart offers technology-driven products aimed at enhancing transparency and efficiency in real estate transactions.

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