Stewart Information Services (NYSE:STC) Shares Gap Down on Disappointing Earnings

Stewart Information Services Corporation (NYSE:STC)’s stock price gapped down prior to trading on Thursday following a weaker than expected 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 trading hands.

The insurance provider reported $1.39 EPS for the quarter, missing the consensus estimate of $1.63 by ($0.24). Stewart Information Services had a net margin of 4.19% and a return on equity of 10.07%. The firm had revenue of $895.80 million for the quarter, compared to analysts’ expectations of $838.07 million. During the same period in the previous year, the company posted $1.34 earnings per share. The business’s quarterly revenue was up 24.5% compared to the same quarter last year.

Stewart Information Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a $0.525 dividend. The ex-dividend date was Monday, June 15th. This represents a $2.10 dividend on an annualized basis and a yield of 3.2%. Stewart Information Services’s dividend payout ratio (DPR) is 46.88%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on STC. Wall Street Zen raised Stewart Information Services from a “hold” rating to a “buy” rating in a report on Saturday, April 25th. Benchmark started coverage on Stewart Information Services in a research report on Tuesday. They issued a “buy” rating and a $87.00 price objective on the stock. Zacks Research raised shares of Stewart Information Services to a “hold” rating in a research note on Wednesday, May 27th. Weiss Ratings raised shares of Stewart Information Services from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, June 5th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of Stewart Information Services from $81.00 to $77.00 and set an “outperform” rating for the company in a research note on Thursday, June 25th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $83.00.

Insiders Place Their Bets

In related news, Director C Allen Bradley, Jr. acquired 1,000 shares of the stock in a transaction on Monday, June 1st. The shares were bought at an average price of $63.87 per share, with a total value of $63,870.00. Following the completion of the purchase, the director owned 25,034 shares of the company’s stock, valued at approximately $1,598,921.58. This represents a 4.16% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO David C. Hisey sold 10,992 shares of Stewart Information Services stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $71.28, for a total transaction of $783,509.76. Following the sale, the chief financial officer owned 61,929 shares of the company’s stock, valued at approximately $4,414,299.12. This represents a 15.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in Stewart Information Services during the 4th quarter worth $43,000. Exchange Traded Concepts LLC acquired a new position in Stewart Information Services during the 4th quarter worth approximately $65,000. Horizon Investments LLC purchased a new position in Stewart Information Services in the fourth quarter worth $65,000. Kemnay Advisory Services Inc. purchased a new position in shares of Stewart Information Services in the 4th quarter valued at about $66,000. Finally, Clearstead Advisors LLC lifted its position in shares of Stewart Information Services by 50.9% during the 4th quarter. Clearstead Advisors LLC now owns 981 shares of the insurance provider’s stock valued at $69,000 after acquiring an additional 331 shares during the period. 96.90% of the stock is owned by hedge funds and other institutional investors.

Stewart Information Services Stock Performance

The company has a market capitalization of $2.01 billion, a PE ratio of 14.77 and a beta of 0.99. The stock has a 50-day simple moving average of $67.17 and a 200 day simple moving average of $66.84. The company has a debt-to-equity ratio of 0.39, a current ratio of 2.12 and a quick ratio of 2.12.

Stewart Information Services Company Profile

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.