Stewart Information Services (NYSE:STC) Reaches New 52-Week Low – Time to Sell?

Stewart Information Services Corporation (NYSE:STC) shares hit a new 52-week low on Wednesday. The company traded as low as $42.66 and last traded at $44.1710, with a volume of 428,369 shares. The stock had previously closed at $43.48.

Key Stewart Information Services News

Here are the key news stories impacting Stewart Information Services this week:

• Positive Sentiment: Company insiders bought approximately 10,000 shares in several transactions. CEO Frederick Eppinger purchased 3,000 shares for about $133,350, while directors Deborah Jane Matz, William S. Corey Jr., C. Allen Bradley Jr. and Thomas G. Apel also acquired shares at prices ranging from $43.91 to $47.73. The cluster of purchases may signal that management and directors view STC as undervalued following its steep decline. STC insider buying report
• Positive Sentiment: Stewart’s quarterly dividend increased to $0.55 per share from $0.525, providing an annualized payout of $2.20 and a yield of roughly 5.1% at recent prices. The higher yield may attract income-focused and value-oriented investors.
• Neutral Sentiment: Stephens lowered its price target for Stewart Information Services from $80 to $70 but retained an “overweight” rating. Although the reduction reflects a more cautious outlook, the new target remains substantially above current trading levels. Stephens forecast report
• Negative Sentiment: Recent quarterly results disappointed investors. Stewart reported earnings of $1.33 per share, below the $1.50 consensus estimate, while revenue of $900.7 million was slightly under expectations. EPS also declined from $1.64 in the year-earlier quarter.
• Negative Sentiment: Analyst sentiment remains mixed: Zacks downgraded the stock to “strong sell,” while the broader consensus rating is “Hold.” The company’s weak technical trend and concerns about near-term real-estate transaction activity continue to limit the impact of the insider purchases.

Analyst Upgrades and Downgrades

Several analysts have issued reports on STC shares. Benchmark started coverage on shares of Stewart Information Services in a research note on Tuesday, July 21st. They set a “buy” rating and a $87.00 target price on the stock. Citigroup reaffirmed a “market outperform” rating on shares of Stewart Information Services in a research report on Monday, October 12th. Keefe, Bruyette & Woods cut Stewart Information Services from an “outperform” rating to a “market perform” rating and decreased their target price for the stock from $77.00 to $71.00 in a research report on Monday, July 27th. Stephens lowered their price target on Stewart Information Services from $80.00 to $70.00 and set an “overweight” rating on the stock in a report on Monday. Finally, Citizens Jmp dropped their price target on Stewart Information Services from $80.00 to $75.00 and set a “market outperform” rating on the stock in a research report on Monday, October 12th. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $75.75.

Stewart Information Services Trading Up 2.3%

The company has a current ratio of 1.85, a quick ratio of 1.98 and a debt-to-equity ratio of 0.39. The company’s fifty day moving average is $59.71 and its 200-day moving average is $65.07. The firm has a market capitalization of $1.36 billion, a P/E ratio of 11.17 and a beta of 1.04.

Stewart Information Services (NYSE:STC) last announced its earnings results on Wednesday, October 21st. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.17). The company had revenue of $900.70 million for the quarter, compared to the consensus estimate of $903.67 million. Stewart Information Services had a return on equity of 9.39% and a net margin of 3.58%. During the same period last year, the firm posted $1.64 EPS. As a group, sell-side analysts anticipate that Stewart Information Services Corporation will post 4.89 earnings per share for the current fiscal year.

Stewart Information Services Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 4.9%. This is a positive change from Stewart Information Services’s previous quarterly dividend of $0.5250. The ex-dividend date of this dividend was Tuesday, September 15th. Stewart Information Services’s payout ratio is presently 55.14%.

Insider Transactions at Stewart Information Services

In related news, CEO Frederick Eppinger bought 3,000 shares of Stewart Information Services stock in a transaction on Monday, October 26th. The shares were purchased at an average price of $44.45 per share, for a total transaction of $133,350.00. Following the completion of the acquisition, the chief executive officer owned 173,675 shares in the company, valued at approximately $7,719,853.75. This represents a 1.76% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Thomas G. Apel bought 2,000 shares of the firm’s stock in a transaction dated Friday, October 23rd. The shares were bought at an average price of $47.73 per share, with a total value of $95,460.00. Following the completion of the transaction, the director directly owned 46,182 shares in the company, valued at approximately $2,204,266.86. This trade represents a 4.53% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have acquired 10,000 shares of company stock valued at $460,960. Corporate insiders own 2.94% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Stewart Information Services during the 2nd quarter worth approximately $347,274,000. Bank of New York Mellon Corp bought a new position in Stewart Information Services in the second quarter valued at approximately $17,759,000. Bank of America Corp DE boosted its holdings in shares of Stewart Information Services by 1.2% in the first quarter. Bank of America Corp DE now owns 215,213 shares of the insurance provider’s stock valued at $13,253,000 after buying an additional 2,631 shares during the period. Principal Financial Group Inc. boosted its holdings in shares of Stewart Information Services by 10.0% in the first quarter. Principal Financial Group Inc. now owns 146,870 shares of the insurance provider’s stock valued at $9,044,000 after buying an additional 13,317 shares during the period. Finally, Heartland Advisors Inc. bought a new stake in Stewart Information Services in the 2nd quarter valued at $8,252,000. Institutional investors own 96.90% of the company’s stock.

About Stewart Information Services

Stewart Information Services Corporation (NYSE: STC) is a global provider of title insurance and real estate transaction services. Through its Stewart Title operations, the company helps protect property owners, lenders and other participants from losses arising from defects in a property’s title.

The company offers title searches and examinations, title insurance policies, escrow and closing services, settlement services, and related solutions for residential and commercial real estate transactions.