Stewart Information Services Corp (NYSE:STC) Group President, Steven Mark Lessack, has sold a total of 9,524 shares of the company's common stock, netting over $695,000. The transactions took place on August 28, as disclosed in a recent SEC filing.
The shares were sold at a weighted-average price of $73.0033, with individual sales prices ranging from $72.54 to $73.40. This sale reduced Lessack's direct holdings in the company to 10,387 shares, according to the filing. Additionally, it was noted that Lessack's spouse indirectly holds 598 shares of Stewart Information Services Corp's common stock.
Investors closely monitor insider transactions as they can provide insights into a company's performance and the confidence level of its executives. The sale by Lessack comes at a time when the company's stock is being actively traded, and such details are crucial for investors making informed decisions.
The transaction was executed in multiple parts, and the company has offered to provide full details of the number of shares sold at each price upon request. This transparency is part of the company's commitment to maintaining a clear and open communication channel with its shareholders and the market at large.
Stewart Information Services Corp., headquartered in Houston, Texas, specializes in title insurance and related services. The company continues to be a significant player in the real estate and mortgage industries.
For further details regarding the transaction, interested parties may refer to the complete SEC filing.
In other recent news, Stewart Information Services has been the subject of several noteworthy developments. The company's second-quarter earnings for 2024 fell short of expectations due to onboarding costs in the Real Estate Solutions business. However, financial services firm Stephens maintains an Overweight rating on the company's shares and has raised its price target from $79.00 to $81.00, indicating confidence in Stewart Information's growth potential.
Furthermore, Stewart Information Services reported a net income of $17 million or $0.62 per diluted share on total revenues of $602 million in Q2 2024. The firm's financial position remains strong with $310 million in cash and investments and a fully available $200 million credit line.
Other recent developments include BTIG raising the price target for Stewart Information Services shares to $80 from $68, maintaining a Buy rating. The company also announced a quarterly cash dividend of $0.475 per share, set for distribution to shareholders of record as of June 17, 2024. Lastly, CEO Fred Eppinger anticipates a normalized housing market by 2026, while the company focuses on strategic growth with targeted expansions in 14 states and 35 core markets.
InvestingPro Insights
As Stewart Information Services Corp (NYSE:STC) navigates the market, recent insider transactions have caught the attention of investors. To provide a broader financial context, InvestingPro data offers additional insights into the company's performance and valuation.
With a market capitalization of $2.04 billion and a high price-to-earnings (P/E) ratio of 46.8, Stewart Information Services is trading at a significant earnings multiple, reflecting a premium that investors are willing to pay for its earnings potential. This is further emphasized by the adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at 47.65. Such a high multiple could suggest that investors have high expectations for the company's future growth.
Despite a slight decline in revenue growth of -4.43% over the last twelve months as of Q2 2024, the company has shown a quarterly revenue growth of 9.03% in Q2 2024, indicating a potential rebound. The gross profit margin remains robust at 60.79%, demonstrating the company's ability to maintain profitability amidst fluctuating revenues.
Investors may also be encouraged by the company's dividend track record. An InvestingPro Tip highlights that Stewart Information Services has raised its dividend for 3 consecutive years and has maintained dividend payments for 22 consecutive years. The dividend yield as of June 2024 stands at 2.58%, with a dividend growth of 5.56% over the last twelve months as of Q2 2024, showcasing the company's commitment to returning value to shareholders.
For investors seeking further insights and tips, InvestingPro offers an array of additional metrics and analysis. Currently, there are 11 more InvestingPro Tips available for Stewart Information Services Corp, which can be accessed for a deeper dive into the company's financial health and future prospects at https://www.investing.com/pro/STC.
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