Stewart Information Services (NYSE:STC) Sets New 1-Year Low – Should You Sell?

Stewart Information Services Corporation (NYSE:STC)’s share price reached a new 52-week low during trading on Thursday. The stock traded as low as $42.65 and last traded at $42.40, with a volume of 114,776 shares changing hands. The stock had previously closed at $44.12.

Analyst Ratings Changes

A number of brokerages have commented on STC. Zacks Research downgraded Stewart Information Services from a “hold” rating to a “strong sell” rating in a research report on Thursday, October 22nd. Citizens Jmp lowered their price objective 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. Benchmark started coverage on Stewart Information Services in a research note on Tuesday, July 21st. They issued a “buy” rating and a $87.00 target price for the company. Keefe, Bruyette & Woods cut Stewart Information Services from an “outperform” rating to a “market perform” rating and reduced their target price for the stock from $77.00 to $71.00 in a research report on Monday, July 27th. Finally, Wall Street Zen cut Stewart Information Services from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $75.75.

Stewart Information Services Stock Performance

The firm has a market cap of $1.28 billion, a P/E ratio of 10.52 and a beta of 1.02. The stock’s 50 day moving average is $54.53 and its two-hundred day moving average is $63.91. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.85 and a quick ratio of 1.85.

Stewart Information Services (NYSE:STC) last announced its quarterly earnings results on Wednesday, October 21st. The insurance provider reported $1.33 EPS for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.17). The business 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 quarter in the prior year, the business earned $1.64 EPS. As a group, equities analysts predict that Stewart Information Services Corporation will post 4.68 EPS for the current year.

Stewart Information Services Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date of this dividend was Tuesday, September 15th. This is a boost from Stewart Information Services’s previous quarterly dividend of $0.5250. Stewart Information Services’s payout ratio is currently 55.14%.

Insider Buying and Selling at Stewart Information Services

In related news, Director C Allen Bradley, Jr. purchased 2,000 shares of the stock in a transaction on Friday, October 23rd. The shares were purchased at an average cost of $47.30 per share, for a total transaction of $94,600.00. Following the completion of the transaction, the director directly owned 27,034 shares of the company’s stock, valued at approximately $1,278,708.20. The trade was a 7.99% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Thomas G. Apel acquired 2,000 shares of the company’s stock in a transaction on 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 purchase, the director directly owned 46,182 shares of the company’s stock, valued at approximately $2,204,266.86. This represents a 4.53% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 10,000 shares of company stock worth $460,960 over the last three months. 2.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in STC. BlackRock Inc. acquired a new stake in shares of Stewart Information Services during the 2nd quarter worth about $347,274,000. Bank of New York Mellon Corp bought a new stake in Stewart Information Services during the second quarter worth about $17,759,000. Bank of America Corp DE increased its holdings in shares of Stewart Information Services by 1.2% during the first quarter. Bank of America Corp DE now owns 215,213 shares of the insurance provider’s stock worth $13,253,000 after buying an additional 2,631 shares in the last quarter. Boston Partners increased its holdings in shares of Stewart Information Services by 15.3% during the third quarter. Boston Partners now owns 156,173 shares of the insurance provider’s stock worth $7,763,000 after buying an additional 20,762 shares in the last quarter. Finally, Principal Financial Group Inc. increased its holdings in shares of Stewart Information Services by 10.0% during the first quarter. Principal Financial Group Inc. now owns 146,870 shares of the insurance provider’s stock worth $9,044,000 after buying an additional 13,317 shares in the last quarter. 96.90% of the stock is owned by institutional investors.

About Stewart Information Services

Stewart Information Services Corporation is a Houston-based provider of title insurance and real estate transaction services. Its business includes issuing title insurance policies and supporting property transfers through services such as title searches, escrow, closing and settlement. The company serves homebuyers, sellers, real estate professionals, mortgage lenders and other participants in property transactions. It also provides related services, including property information and services supporting mortgage lending and real estate operations.