Stephens Has Lowered Expectations for Stewart Information Services (NYSE:STC) Stock Price

Key Points

• Stephens lowered its price target for Stewart Information Services from $80 to $70 while maintaining an “overweight” rating, implying approximately 59% upside from the reported $44.01 share price.
• Analyst sentiment is mixed: four analysts rate the stock Buy, two Hold, and one Sell, resulting in a consensus “Hold” rating and average target price of $75.75.
• Stewart reported quarterly EPS of $1.33, missing the $1.50 consensus estimate, while revenue of $900.7 million was slightly below expectations; analysts expect full-year EPS of $4.89.

Stewart Information Services (NYSE:STC - Get Free Report) had its target price reduced by Stephens from $80.00 to $70.00 in a report issued on Monday, Benzinga reports. The firm presently has an "overweight" rating on the insurance provider's stock. Stephens's price objective suggests a potential upside of 59.06% from the company's current price.

Other research analysts also recently issued research reports about the company. Zacks Research downgraded Stewart Information Services from a "hold" rating to a "strong sell" rating in a research note on Thursday. Citigroup restated a "market outperform" rating on shares of Stewart Information Services in a research report on Monday, October 12th. Weiss Ratings cut shares of Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, October 19th. Wall Street Zen downgraded Stewart Information Services from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Finally, Benchmark assumed coverage on shares of Stewart Information Services in a report on Tuesday, July 21st. They issued a "buy" rating and a $87.00 target price on the stock. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $75.75.

Stewart Information Services Trading Down 0.1%

Shares of STC opened at $44.01 on Monday. Stewart Information Services has a 52-week low of $43.48 and a 52-week high of $78.61. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.98 and a current ratio of 1.85. The business's fifty day moving average is $60.69 and its 200-day moving average is $65.01. The firm has a market cap of $1.34 billion, a price-to-earnings ratio of 11.03 and a beta of 1.04.

Stewart Information Services (NYSE:STC - Get Free Report) last issued its earnings results on Wednesday, October 21st. The insurance provider reported $1.33 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.17). The business had revenue of $900.70 million for the quarter, compared to analyst estimates of $903.67 million. Stewart Information Services had a return on equity of 9.39% and a net margin of 3.58%. During the same period in the previous year, the firm posted $1.64 EPS. Equities analysts anticipate that Stewart Information Services will post 4.89 EPS for the current fiscal year.

Insider Activity

In related news, insider Brian Glaze sold 1,500 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $69.16, for a total transaction of $103,740.00. Following the sale, the insider directly owned 11,784 shares in the company, valued at approximately $814,981.44. This represents a 11.29% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 2.94% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Stewart Information Services in the second quarter worth about $347,274,000. Bank of New York Mellon Corp purchased a new position in Stewart Information Services during the second quarter worth about $17,759,000. Bank of America Corp DE grew its position in Stewart Information Services by 1.2% during the first quarter. Bank of America Corp DE now owns 215,213 shares of the insurance provider's stock worth $13,253,000 after buying an additional 2,631 shares in the last quarter. Principal Financial Group Inc. increased its stake in Stewart Information Services by 10.0% in the 1st quarter. Principal Financial Group Inc. now owns 146,870 shares of the insurance provider's stock worth $9,044,000 after acquiring an additional 13,317 shares during the last quarter. Finally, Heartland Advisors Inc. bought a new position in Stewart Information Services in the 2nd quarter worth about $8,252,000. Hedge funds and other institutional investors own 96.90% of the company's stock.

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.

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