Charles Kovaleski buys $4,000 worth of Old Republic shares from Investing.com

Charles J. Kovaleski, director at Old International Republic Corp (NYSE: ), increased its stake in the company through a recent stock purchase. The transaction, which took place on September 16, involved the purchase of shares at a price of $35.43 each, for a total investment of $4,046.

The purchase was executed under the company’s Dividend Reinvestment Plan, as indicated in a footnote to the filing. Following this transaction, Kovaleski’s total holdings in Old Republic International Corp reached 15,384.14 common shares.

Investors often monitor insider trading because it can provide insight into the levels of confidence executives and directors have in the company’s prospects. Kovaleski’s recent purchase can be interpreted as a signal of his positive outlook on the insurer’s future performance.

Old Republic International Corp, headquartered in Chicago, Illinois, operates in the surety insurance industry and is known for its commitment to financial stability and reliable service.

Details of the transaction were disclosed in a Form 4 filed with the Securities and Exchange Commission on September 20, 2024.

In other recent news, Old Republic International Corporation reported an increase in pretax operating income in the second quarter to $254 million from $227 million a year earlier. This growth was driven by a 10% increase in pre-tax operating income of the General Insurance segment and a significant 32% increase in the Title Insurance segment. The Corporation also disclosed a nonqualified deferred compensation plan for select management and highly compensated employees effective January 1, 2025.

This plan, disclosed in a recent SEC filing, aligns with Section 409A of the Internal Revenue Code and provides a structured compensation deferral option for key personnel. Participants will be able to defer a portion of their compensation and Old Republic International may contribute to these accounts at its discretion.

These recent developments come alongside the corporation’s continued investment in technology and new underwriting subsidiaries. Analysts noted Old Republic’s conservative stance on loss allowance and target to maintain combined ratios between 90% and 92.5% for both insurance segments, suggesting efficient management and positioning for future growth.

InvestingPro Insights

Director Charles J. Kovaleski’s recent purchase of shares in Old Republic International Corp (NYSE:ORI) aligns with a broader pattern of confidence, as identified by InvestingPro. The insurer, which has maintained dividend payments for an outstanding 54 consecutive years, demonstrates a commitment to returning value to shareholders. This is also underscored by the company’s aggressive share buyback strategy, a move that typically signals management’s belief in the company’s undervalued stock and strong future prospects.

InvestingPro Tips points out that two analysts have revised their earnings upward for the next period, suggesting that the company’s financial health may be on the rise. This optimism is reflected in the company’s strong returns, with an impressive total price return of 16.96% over the past three months and a notable 33.37% over the past year, indicating robust market performance. Furthermore, Old Republic International is trading near its 52-week high, with its price at 98.59% of this high, which may attract investors looking for stocks with strong momentum.

In terms of financial metrics, Old Republic International boasts a market cap of $9.08 billion and a solid P/E ratio of 14.83, which falls slightly to 13.74 when adjusted for trailing twelve months starting with Q2 2024. The company’s revenue for the same period stands at $7.59 billion with a gross profit margin of 62.92%, highlighting its ability to maintain its profitability. These values, combined with a dividend yield of 2.99%, make a compelling case for investors considering the insurance sector.

For those seeking a more in-depth analysis, InvestingPro offers additional advice on Old Republic International Corp, providing a comprehensive picture of the company’s financial health and future prospects. Visit InvestingPro for more information: https://www.investing.com/pro/ORI.

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