Stewart Information Services (NYSE:STC) Shares Gap Up After Earnings Beat

Shares of Stewart Information Services Co. (NYSE:STC) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $67.37, but opened at $70.45. Stewart Information Services shares last traded at $71.55, with a volume of 8,675 shares traded.

The insurance provider reported $1.17 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.21. Stewart Information Services had a net margin of 1.85% and a return on equity of 5.16%. The company had revenue of $667.94 million during the quarter, compared to the consensus estimate of $638.40 million. During the same quarter in the prior year, the company posted $0.86 EPS. The company’s quarterly revenue was up 11.0% compared to the same quarter last year.

Stewart Information Services Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Monday, September 16th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.90%. The ex-dividend date of this dividend was Monday, September 16th. This is a positive change from Stewart Information Services’s previous quarterly dividend of $0.48. Stewart Information Services’s dividend payout ratio (DPR) is 131.58%.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on STC. StockNews.com lowered Stewart Information Services from a “buy” rating to a “hold” rating in a research report on Tuesday, July 2nd. Stephens reaffirmed an “overweight” rating and issued a $79.00 price objective on shares of Stewart Information Services in a research note on Thursday, July 25th. Keefe, Bruyette & Woods boosted their target price on Stewart Information Services from $71.00 to $75.00 and gave the stock a “market perform” rating in a report on Wednesday, September 4th. Finally, BTIG Research raised their price target on shares of Stewart Information Services from $68.00 to $80.00 and gave the company a “buy” rating in a report on Monday, July 22nd.

Insider Buying and Selling at Stewart Information Services

In other news, CFO David C. Hisey sold 12,649 shares of the company’s stock in a transaction dated Thursday, August 8th. The stock was sold at an average price of $69.27, for a total value of $876,196.23. Following the completion of the sale, the chief financial officer now owns 55,917 shares of the company’s stock, valued at $3,873,370.59. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Stewart Information Services

A number of institutional investors and hedge funds have recently bought and sold shares of STC. Blue Trust Inc. raised its stake in shares of Stewart Information Services by 57.7% during the second quarter. Blue Trust Inc. now owns 716 shares of the insurance provider’s stock valued at $47,000 after purchasing an additional 262 shares during the period. Copeland Capital Management LLC acquired a new stake in Stewart Information Services during the 3rd quarter valued at $61,000. Kings Path Partners LLC purchased a new stake in Stewart Information Services during the 2nd quarter worth $65,000. nVerses Capital LLC acquired a new position in Stewart Information Services in the 2nd quarter worth $74,000. Finally, SG Americas Securities LLC purchased a new position in Stewart Information Services in the 1st quarter valued at about $111,000. Hedge funds and other institutional investors own 96.90% of the company’s stock.

Stewart Information Services Stock Down 3.4 %

The company has a quick ratio of 1.97, a current ratio of 1.97 and a debt-to-equity ratio of 0.32. The firm has a 50 day moving average price of $71.98 and a two-hundred day moving average price of $67.14. The company has a market capitalization of $1.90 billion, a price-to-earnings ratio of 45.40 and a beta of 1.20.

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.