Stewart Information Services (NYSE:STC) Shares Gap Down Following Weak Earnings

Shares of Stewart Information Services Corporation (NYSE:STC) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $69.71, but opened at $63.96. Stewart Information Services shares last traded at $66.2030, with a volume of 81,785 shares.

The insurance provider reported $1.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.63 by ($0.24). Stewart Information Services had a net margin of 4.12% and a return on equity of 10.02%. The company had revenue of $895.80 million during the quarter, compared to analyst estimates of $838.07 million. During the same period in the prior year, the firm posted $1.34 EPS. Stewart Information Services’s revenue was up 24.5% compared to the same quarter last year.

Stewart Information Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date was Monday, June 15th. Stewart Information Services’s dividend payout ratio (DPR) is currently 46.88%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the company. Stephens reiterated an “overweight” rating and set a $88.00 price objective on shares of Stewart Information Services in a research note on Monday, May 18th. Benchmark started coverage on shares of Stewart Information Services in a research note on Tuesday. They issued a “buy” rating and a $87.00 target price for the company. Weiss Ratings upgraded shares of Stewart Information Services from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, June 5th. Wall Street Zen lowered shares of Stewart Information Services from a “buy” rating to a “hold” rating in a research report on Saturday. Finally, Zacks Research upgraded shares of Stewart Information Services to a “hold” rating in a research note on Wednesday, May 27th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $83.00.

Insider Activity

In other Stewart Information Services news, Director C Allen Bradley, Jr. bought 1,000 shares of Stewart Information Services stock in a transaction dated Monday, June 1st. The stock was bought at an average cost of $63.87 per share, for a total transaction of $63,870.00. Following the purchase, the director owned 25,034 shares of the company’s stock, valued at $1,598,921.58. The trade was a 4.16% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Stewart Information Services

Several hedge funds have recently added to or reduced their stakes in STC. Vanguard Group Inc. boosted its position in Stewart Information Services by 4.6% during the fourth quarter. Vanguard Group Inc. now owns 2,044,758 shares of the insurance provider’s stock worth $143,665,000 after purchasing an additional 90,233 shares during the period. Capital International Investors raised its position in shares of Stewart Information Services by 10.2% in the fourth quarter. Capital International Investors now owns 842,077 shares of the insurance provider’s stock valued at $59,164,000 after purchasing an additional 77,618 shares during the period. Millennium Management LLC raised its position in shares of Stewart Information Services by 75.9% in the fourth quarter. Millennium Management LLC now owns 701,148 shares of the insurance provider’s stock valued at $49,263,000 after purchasing an additional 302,623 shares during the period. Geode Capital Management LLC lifted its stake in shares of Stewart Information Services by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 663,625 shares of the insurance provider’s stock worth $46,634,000 after buying an additional 2,234 shares during the last quarter. Finally, Cooke & Bieler LP lifted its stake in shares of Stewart Information Services by 2.1% during the 4th quarter. Cooke & Bieler LP now owns 563,003 shares of the insurance provider’s stock worth $39,557,000 after buying an additional 11,484 shares during the last quarter. Institutional investors and hedge funds own 96.90% of the company’s stock.

Stewart Information Services Stock Up 5.0%

The firm has a market cap of $2.05 billion, a P/E ratio of 14.80 and a beta of 0.99. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.12 and a current ratio of 1.98. The firm’s fifty day moving average is $67.12 and its 200 day moving average is $66.80.

About Stewart Information Services

Stewart Information Services Corporation (NYSE: STC) is a publicly traded provider of title insurance and real estate transaction services. The company underwrites title insurance policies for residential and commercial properties, offering lenders and property owners protection against title defects and liens. Beyond title insurance, Stewart delivers a range of ancillary services, including closing and escrow administration, property valuation, and risk mitigation solutions designed to streamline the mortgage process and reduce operational complexity for clients.

In addition to core title and settlement services, Stewart offers technology-driven products aimed at enhancing transparency and efficiency in real estate transactions.