Stewart Information Services (NYSE:STC) Trading 7.4% Higher - What's Next?

Key Points

• Shares of Stewart Information Services traded up by 7.4%, reaching a high of $78.00 before closing at $76.79, with a trading volume significantly above average.
• The company reported $1.34 EPS for the last quarter, exceeding analyst estimates, along with a 19.9% year-over-year revenue increase to $721.50 million.
• Stewart recently increased its quarterly dividend to $0.525 per share, representing a yield of 2.8%, and maintaining a payout ratio of 67.52%.

Shares of Stewart Information Services Corporation (NYSE:STC - Get Free Report) traded up 7.4% during mid-day trading on Wednesday . The stock traded as high as $78.00 and last traded at $76.79. 276,238 shares changed hands during trading, an increase of 54% from the average session volume of 178,881 shares. The stock had previously closed at $71.50.

Wall Street Analyst Weigh In

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

Stewart Information Services Trading Up 4.9%

The company has a market cap of $2.10 billion, a price-to-earnings ratio of 24.11 and a beta of 0.96. The company has a current ratio of 1.91, a quick ratio of 1.91 and a debt-to-equity ratio of 0.31. The firm has a 50-day moving average price of $72.15 and a 200 day moving average price of $66.77.

Stewart Information Services (NYSE:STC - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The insurance provider reported $1.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.30 by $0.04. Stewart Information Services had a return on equity of 7.71% and a net margin of 3.29%.The business had revenue of $721.50 million during the quarter, compared to analyst estimates of $671.90 million. During the same quarter in the previous year, the firm posted $0.91 EPS. The business's revenue for the quarter was up 19.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Stewart Information Services Corporation will post 6.29 EPS for the current year.

Stewart Information Services Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Tuesday, September 16th were given a dividend of $0.525 per share. The ex-dividend date was Tuesday, September 16th. This represents a $2.10 dividend on an annualized basis and a yield of 2.8%. 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%.

Insider Buying and Selling

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

Institutional Trading of Stewart Information Services

Several hedge funds have recently added to or reduced their stakes in the business. Marietta Wealth Management LLC bought a new stake in Stewart Information Services during the 3rd quarter valued at $221,000. Copeland Capital Management LLC raised its stake in Stewart Information Services by 96.7% during the 3rd quarter. Copeland Capital Management LLC now owns 1,119 shares of the insurance provider's stock valued at $82,000 after acquiring an additional 550 shares in the last quarter. Heritage Family Offices LLP raised its stake in shares of Stewart Information Services by 4.5% in the 3rd quarter. Heritage Family Offices LLP now owns 4,012 shares of the insurance provider's stock worth $294,000 after buying an additional 173 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Stewart Information Services by 138.3% in the 3rd quarter. GAMMA Investing LLC now owns 741 shares of the insurance provider's stock worth $54,000 after buying an additional 430 shares in the last quarter. Finally, Squarepoint Ops LLC raised its stake in shares of Stewart Information Services by 207.3% in the 2nd quarter. Squarepoint Ops LLC now owns 22,679 shares of the insurance provider's stock worth $1,476,000 after buying an additional 15,299 shares in the last quarter. Institutional investors own 96.90% of the company's stock.

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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