Stewart Information Services Corporation (NYSE: STC) experienced a notable rise in short interest during February, increasing by 56.8% from the previous reporting period. As of February 27, 2024, short interest totaled 720,161 shares, up from 459,346 shares recorded on February 12, 2024. This increase suggests a growing sentiment among investors betting against the stock, with approximately 2.6% of the company’s shares currently short sold. Given the average daily trading volume of 192,611 shares, the days-to-cover ratio stands at 3.7 days.
In trading on Friday, STC shares saw a slight uptick of 2.2%, closing at $64.66. Volume reached 213,579 shares, surpassing the average of 200,902. Over the past year, Stewart Information Services has seen its stock fluctuate between a low of $56.39 and a high of $78.61. The company’s market capitalization is now $1.81 billion, with a price-to-earnings (P/E) ratio of 16.00 and a beta of 1.01. The fifty-day and two-hundred-day simple moving averages are $68.03 and $70.95, respectively.
Financial Performance and Analyst Ratings
Stewart Information Services reported its most recent earnings results on February 4, 2024, showcasing a strong performance with earnings per share (EPS) of $1.65. This figure exceeded the consensus estimate of $1.35 by $0.30. The company generated revenue of $794.40 million during the quarter, surpassing analysts’ expectations of $774.05 million. This represents an impressive 18.7% increase in revenue compared to the same quarter last year, when earnings were $1.12 per share. Analysts forecast an EPS of 6.29 for the current year.
Recent evaluations from various equity research analysts reveal mixed sentiments about the stock. Wall Street Zen downgraded STC from a “buy” rating to a “hold” on February 8, 2024. Conversely, Stephens upgraded the stock from “equal weight” to “overweight,” setting a target price of $82.00 on February 27, 2024. Additionally, Keefe, Bruyette & Woods raised its target price from $81.00 to $82.00 with an “outperform” rating.
Insider Activity and Institutional Investment
In related news, C Allen Bradley, Jr., a director at Stewart, purchased 1,000 shares on March 10, 2024, at an average price of $65.34 per share, totaling $65,340. Following this transaction, Bradley owns 21,243 shares, with a total value of approximately $1,388,017.62. This acquisition represents a 4.94% increase in his ownership stake. Currently, insiders hold about 1.50% of the company’s stock.
Institutional investors have shown increased interest in Stewart Information Services recently. For example, Vident Advisory LLC boosted its stake by 1,204.5% in the fourth quarter, acquiring an additional 48,650 shares, bringing its total to 52,689 shares valued at approximately $3.7 million. Other significant investments include Zimmer Partners LP, which purchased a new stake valued at about $24.9 million, and XTX Topco Ltd, which acquired shares worth around $645,000. Overall, institutional investors now hold 96.90% of Stewart Information Services’ stock.
Stewart Information Services Corporation specializes in title insurance and real estate transaction services, underwriting policies for both residential and commercial properties. The firm also provides ancillary services, including closing and escrow administration, property valuation, and risk mitigation solutions.
As the company navigates these developments, its performance in the market will be closely monitored by both investors and analysts alike.
