Stewart Information Services (NYSE:STC) Shares Down 6.6% After Analyst Downgrade

Stewart Information Services Corporation (NYSE:STC)’s stock price fell 6.6% during mid-day trading on Friday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $46.22 and last traded at $45.9850. Approximately 208,432 shares were traded during trading, a decline of 16% from the average session volume of 246,935 shares. The stock had previously closed at $49.24.

Other equities research analysts have also recently issued research reports about the company. Benchmark began coverage on Stewart Information Services in a research note on Tuesday, July 21st. They issued a “buy” rating and a $87.00 price objective for the company. Weiss Ratings lowered shares of Stewart Information Services from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, October 19th. Citigroup restated a “market outperform” rating on shares of Stewart Information Services in a research report on Monday, October 12th. Wall Street Zen cut shares of Stewart Information Services from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Finally, Citizens Jmp reduced their price target on shares of Stewart Information Services from $80.00 to $75.00 and set a “market outperform” rating for the company in a research report on Monday, October 12th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $80.25.

Insider Buying and Selling at Stewart Information Services

In related news, insider Brian Glaze sold 1,500 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $69.16, for a total transaction of $103,740.00. Following the transaction, the insider owned 11,784 shares of the company’s stock, valued at $814,981.44. This represents a 11.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.94% of the stock is currently owned by company insiders.

Key Headlines Impacting Stewart Information Services

Here are the key news stories impacting Stewart Information Services this week:

• Positive Sentiment: Third-quarter revenue reached a record level, indicating continued business volume and providing some support for the long-term outlook. However, the revenue performance was not enough to offset weaker earnings. Stewart Information Services Q3 2026: Revenue Record Masks a Profit Slide
• Neutral Sentiment: Management discussed the quarter and the company’s outlook during its earnings call, giving investors additional context on operating conditions and future performance. Stewart Information Services Q3 2026 Earnings Call Transcript
• Negative Sentiment: Third-quarter adjusted earnings were $1.33 per share, below the $1.50 analyst consensus, while revenue of approximately $900.7 million also slightly missed expectations. Profit fell 32% year over year, despite the revenue record, reinforcing concerns about margins and earnings quality. Stewart Information Services Q3 Profit Falls 32%
• Negative Sentiment: DOWLING & PARTN reduced its 2026 EPS forecast to $4.89 from $5.26, matching the current consensus estimate. It also cut its 2027 forecast to $5.20 from $6.25 and its 2028 forecast to $6.05 from $7.05. The multi-year reductions suggest analysts expect a slower earnings recovery than previously projected. Stewart Information Services analyst estimates

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Kings Path Partners LLC acquired a new stake in shares of Stewart Information Services during the 3rd quarter valued at approximately $52,000. Farther Finance Advisors LLC grew its holdings in shares of Stewart Information Services by 20.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,794 shares of the insurance provider’s stock worth $139,000 after acquiring an additional 473 shares during the period. Versant Capital Management Inc increased its stake in Stewart Information Services by 93.6% in the 3rd quarter. Versant Capital Management Inc now owns 1,152 shares of the insurance provider’s stock valued at $57,000 after purchasing an additional 557 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its stake in Stewart Information Services by 34.0% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,351 shares of the insurance provider’s stock valued at $419,000 after purchasing an additional 1,612 shares in the last quarter. Finally, Engineers Gate Manager LP raised its holdings in Stewart Information Services by 20.0% during the second quarter. Engineers Gate Manager LP now owns 5,146 shares of the insurance provider’s stock worth $340,000 after purchasing an additional 858 shares during the last quarter. 96.90% of the stock is owned by hedge funds and other institutional investors.

Stewart Information Services Stock Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 1.85 and a quick ratio of 1.98. The company has a market capitalization of $1.34 billion, a PE ratio of 11.03 and a beta of 1.04. The stock has a 50-day simple moving average of $60.69 and a 200 day simple moving average of $64.99.

Stewart Information Services (NYSE:STC) last announced its quarterly earnings results on Wednesday, October 21st. The insurance provider reported $1.33 earnings per share for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.17). The firm had revenue of $900.70 million during the quarter, compared to analysts’ expectations of $903.67 million. Stewart Information Services had a net margin of 3.58% and a return on equity of 9.39%. During the same quarter in the prior year, the business earned $1.64 EPS. Equities analysts anticipate that Stewart Information Services Corporation will post 4.89 EPS for the current fiscal year.

Stewart Information Services Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a $0.55 dividend. This represents a $2.20 dividend on an annualized basis and a yield of 5.0%. The ex-dividend date of this dividend was Tuesday, September 15th. This is a positive change from Stewart Information Services’s previous quarterly dividend of $0.5250. Stewart Information Services’s dividend payout ratio is currently 55.14%.

Stewart Information Services Company Profile

Stewart Information Services Corporation (NYSE: STC) is a global provider of title insurance and real estate transaction services. Through its Stewart Title operations, the company helps protect property owners, lenders and other participants from losses arising from defects in a property’s title.

The company offers title searches and examinations, title insurance policies, escrow and closing services, settlement services, and related solutions for residential and commercial real estate transactions.