Stewart Information Services (NYSE:STC) Trading Down 7% - Here's Why

Key Points

• Stewart Information Services' share price fell by 7%, trading as low as $69.94, with an 89% decline in trading volume compared to average sessions.
• Analysts have set a new average price target of $77.50 for Stewart Information Services, with ratings fluctuating between "hold" and "buy."
• The company recently increased its quarterly dividend to $0.525, reflecting a solid annualized yield of 2.9% amid growing net revenue and earnings per share.

Stewart Information Services Corporation (NYSE:STC - Get Free Report)'s share price traded down 7% during mid-day trading on Thursday . The company traded as low as $73.14 and last traded at $69.94. 20,239 shares traded hands during trading, a decline of 89% from the average session volume of 179,675 shares. The stock had previously closed at $75.19.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Keefe, Bruyette & Woods upped their price target 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. Weiss Ratings reiterated a "buy (b-)" rating on shares of Stewart Information Services in a research report on Wednesday, October 8th. Finally, Wall Street Zen upgraded Stewart Information Services from a "hold" rating to a "buy" rating in a research report on Sunday. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Stewart Information Services currently has an average rating of "Moderate Buy" and an average price target of $77.50.

Stewart Information Services Stock Performance

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 business's 50 day moving average is $72.20 and its 200 day moving average is $66.83. The stock has a market capitalization of $2.04 billion, a PE ratio of 23.40 and a beta of 0.96.

Stewart Information Services (NYSE:STC - Get Free Report) last announced its quarterly earnings data on Wednesday, October 22nd. The insurance provider reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.42 by $0.22. The business had revenue of $791.30 million during the quarter, compared to the consensus estimate of $737.30 million. Stewart Information Services had a net margin of 3.29% and a return on equity of 7.71%. The firm's quarterly revenue was up 19.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.07 earnings per share. On average, equities research analysts predict that Stewart Information Services Corporation will post 6.29 earnings per share for the current fiscal year.

Stewart Information Services Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 16th were given a $0.525 dividend. This is a boost from Stewart Information Services's previous quarterly dividend of $0.50. The ex-dividend date of this dividend was Tuesday, September 16th. This represents a $2.10 annualized dividend and a yield of 2.9%. Stewart Information Services's dividend payout ratio is currently 67.52%.

Insider Buying and Selling at Stewart Information Services

In related 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 transaction of $371,932.08. Following the completion of the sale, the insider owned 23,872 shares in the company, valued at $1,559,319.04. This trade represents a 19.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO David C. Hisey sold 2,224 shares of the business's 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 sale, the chief financial officer directly owned 58,359 shares of the company's stock, valued at approximately $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. Corporate insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Stewart Information Services

Institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC increased its position in shares of Stewart Information Services by 138.3% during the third quarter. GAMMA Investing LLC now owns 741 shares of the insurance provider's stock worth $54,000 after acquiring an additional 430 shares during the period. Copeland Capital Management LLC lifted its holdings in shares of Stewart Information Services by 96.7% in the 3rd quarter. Copeland Capital Management LLC now owns 1,119 shares of the insurance provider's stock worth $82,000 after buying an additional 550 shares during the period. Farther Finance Advisors LLC lifted 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 buying an additional 1,450 shares during the period. Tower Research Capital LLC TRC lifted its holdings in shares of Stewart Information Services by 70.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,271 shares of the insurance provider's stock worth $148,000 after buying an additional 935 shares during the period. Finally, State of Wyoming lifted its holdings in shares of Stewart Information Services by 216.1% in the 2nd quarter. State of Wyoming now owns 2,658 shares of the insurance provider's stock worth $173,000 after buying an additional 1,817 shares during the period. 96.90% of the stock is owned by hedge funds and other 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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