Stewart Information Services (NYSE:STC) Shares Gap Down – Should You Sell?

Stewart Information Services Corporation (NYSE:STC)’s stock price gapped down before the market opened on Friday. The stock had previously closed at $61.98, but opened at $60.04. Stewart Information Services shares last traded at $59.2240, with a volume of 5,328 shares traded.

Wall Street Analyst Weigh In

Several analysts have commented on STC shares. Benchmark assumed coverage on shares of Stewart Information Services in a research note on Tuesday, July 21st. They issued a “buy” rating and a $87.00 price target on the stock. 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 report on Monday, July 27th. Zacks Research upgraded Stewart Information Services from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Weiss Ratings lowered Stewart Information Services from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 18th. Finally, Wall Street Zen cut Stewart Information Services from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $81.50.

Stewart Information Services Stock Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 1.98 and a quick ratio of 1.98. The business has a 50-day simple moving average of $67.53 and a 200-day simple moving average of $66.45. The firm has a market capitalization of $1.82 billion, a PE ratio of 13.09 and a beta of 0.97.

Stewart Information Services (NYSE:STC) last announced its earnings results on Wednesday, July 22nd. The insurance provider reported $1.39 EPS for the quarter, missing analysts’ consensus estimates of $1.63 by ($0.24). Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%.The company had revenue of $895.80 million during the quarter, compared to analysts’ expectations of $838.07 million. During the same quarter last year, the firm posted $1.34 EPS. Stewart Information Services’s revenue for the quarter was up 24.5% compared to the same quarter last year. Equities research analysts expect that Stewart Information Services Corporation will post 5.26 earnings per share for the current fiscal year.

Stewart Information Services Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be paid a $0.55 dividend. This is an increase from Stewart Information Services’s previous quarterly dividend of $0.5250. This represents a $2.20 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Stewart Information Services’s payout ratio is currently 48.25%.

Insider Activity

In related news, insider Brian Glaze sold 1,500 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $69.16, for a total transaction of $103,740.00. Following the transaction, the insider directly owned 11,784 shares in the company, valued at approximately $814,981.44. This represents a 11.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.94% of the company’s stock.

Institutional Trading of Stewart Information Services

Several institutional investors have recently added to or reduced their stakes in STC. ProShare Advisors LLC lifted its position in shares of Stewart Information Services by 3.1% during the fourth quarter. ProShare Advisors LLC now owns 5,407 shares of the insurance provider’s stock worth $380,000 after purchasing an additional 164 shares in the last quarter. Arizona State Retirement System increased its stake in Stewart Information Services by 2.4% during the 2nd quarter. Arizona State Retirement System now owns 8,417 shares of the insurance provider’s stock worth $556,000 after buying an additional 198 shares during the period. Maryland State Retirement & Pension System increased its stake in Stewart Information Services by 7.0% during the 1st quarter. Maryland State Retirement & Pension System now owns 4,378 shares of the insurance provider’s stock worth $270,000 after buying an additional 287 shares during the period. Illinois Municipal Retirement Fund increased its stake in Stewart Information Services by 1.9% during the 1st quarter. Illinois Municipal Retirement Fund now owns 16,116 shares of the insurance provider’s stock worth $992,000 after buying an additional 308 shares during the period. Finally, Clearstead Advisors LLC lifted its holdings in Stewart Information Services by 50.9% during the 4th quarter. Clearstead Advisors LLC now owns 981 shares of the insurance provider’s stock worth $69,000 after buying an additional 331 shares in the last quarter. Institutional investors own 96.90% of the company’s stock.

Stewart Information Services Company Profile

Stewart Information Services Corporation is a title insurance and real estate services company headquartered in Houston, Texas. Through its Stewart Title operations, the company provides title insurance, escrow and closing services, and related services that help protect property buyers, lenders and other participants in real estate transactions from title defects and ownership-related risks.

The company also offers valuation and appraisal services, mortgage services, and technology-enabled solutions for the real estate and mortgage industries.