Old Republic International (NYSE:ORI) Shares Gap Down Following Weak Earnings

Shares of Old Republic International Corporation (NYSE:ORI) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $43.12, but opened at $37.87. Old Republic International shares last traded at $38.6980, with a volume of 1,548,462 shares traded.

The insurance provider reported $0.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.89 by ($0.15). The business had revenue of $2.39 billion during the quarter, compared to analyst estimates of $2.31 billion. Old Republic International had a net margin of 9.53% and a return on equity of 17.11%. During the same period last year, the firm posted $0.90 earnings per share.

Old Republic International Announces Dividend

The business also recently declared a special dividend, which was paid on Wednesday, January 14th. Shareholders of record on Friday, January 2nd were issued a $2.50 dividend. The ex-dividend date was Friday, January 2nd. Old Republic International’s dividend payout ratio (DPR) is presently 38.80%.

Wall Street Analyst Weigh In

ORI has been the topic of a number of research analyst reports. Weiss Ratings reissued a “buy (a)” rating on shares of Old Republic International in a research report on Wednesday, December 24th. Piper Sandler reaffirmed a “neutral” rating and set a $38.00 price target on shares of Old Republic International in a research note on Thursday. Two investment analysts have rated the stock with a Strong Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $42.50.

Insider Activity

In other Old Republic International news, SVP Carolyn Monroe sold 6,680 shares of the stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $44.54, for a total value of $297,527.20. Following the completion of the sale, the senior vice president owned 29,075 shares in the company, valued at approximately $1,295,000.50. This trade represents a 18.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Therace Risch purchased 1,000 shares of the stock in a transaction that occurred on Monday, November 3rd. The stock was bought at an average cost of $39.14 per share, for a total transaction of $39,140.00. Following the acquisition, the director directly owned 10,625 shares in the company, valued at $415,862.50. This trade represents a 10.39% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Old Republic International

Several institutional investors have recently added to or reduced their stakes in ORI. JPL Wealth Management LLC bought a new stake in shares of Old Republic International in the third quarter valued at approximately $27,000. Clearstead Trust LLC lifted its holdings in Old Republic International by 65.6% during the 3rd quarter. Clearstead Trust LLC now owns 727 shares of the insurance provider’s stock worth $31,000 after purchasing an additional 288 shares in the last quarter. Ameritas Advisory Services LLC bought a new position in shares of Old Republic International in the second quarter valued at approximately $34,000. Core Alternative Capital bought a new stake in Old Republic International during the 3rd quarter worth approximately $42,000. Finally, Wilmington Savings Fund Society FSB lifted its stake in Old Republic International by 28.1% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 1,013 shares of the insurance provider’s stock worth $43,000 after purchasing an additional 222 shares in the last quarter. 70.92% of the stock is owned by hedge funds and other institutional investors.

Old Republic International Stock Performance

The company’s fifty day simple moving average is $44.57 and its 200 day simple moving average is $41.35. The stock has a market capitalization of $9.46 billion, a P/E ratio of 12.76 and a beta of 0.76. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt-to-equity ratio of 0.25.

About Old Republic International

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety.