Stewart Information Services (NYSE:STC) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Stewart Information Services to “strong sell” from “hold,” although the broader analyst consensus remains “hold” with a target price of $80.25.
• Stewart reported third-quarter EPS of $1.33, missing the $1.50 consensus estimate, while revenue of $900.7 million also fell slightly short; earnings declined year over year despite record revenue.
• Shares opened at $44.01, near the company’s 52-week low of $43.48, while analysts lowered longer-term earnings forecasts, signaling concerns about margins and the pace of recovery.

Stewart Information Services (NYSE:STC - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday, Zacks reports.

Several other research analysts have also recently commented on the stock. Citigroup restated a "market outperform" rating on shares of Stewart Information Services in a research report on Monday, October 12th. Benchmark initiated coverage on Stewart Information Services in a report on Tuesday, July 21st. They set a "buy" rating and a $87.00 price target on the stock. Wall Street Zen cut Stewart Information Services from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Citizens Jmp reduced their price objective on 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. Finally, Keefe, Bruyette & Woods lowered Stewart Information Services from an "outperform" rating to a "market perform" rating and decreased their price objective for the stock from $77.00 to $71.00 in a report on Monday, July 27th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Stewart Information Services presently has a consensus rating of "Hold" and a consensus target price of $80.25.

Stewart Information Services Stock Performance

Shares of STC opened at $44.01 on Thursday. Stewart Information Services has a 1 year low of $43.48 and a 1 year high of $78.61. The company has a market cap of $1.34 billion, a price-to-earnings ratio of 9.56 and a beta of 1.04. 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 firm has a fifty day moving average of $60.69 and a 200-day moving average of $64.99.

Stewart Information Services (NYSE:STC - Get Free Report) last released its quarterly 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 firm had revenue of $900.70 million for the quarter, compared to the consensus estimate 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 quarter in the prior year, the company posted $1.64 EPS. As a group, equities analysts anticipate that Stewart Information Services will post 4.89 earnings per share for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On Stewart Information Services

Several hedge funds have recently bought and sold shares of STC. Kings Path Partners LLC bought a new position in shares of Stewart Information Services in the third quarter worth about $52,000. Farther Finance Advisors LLC raised its stake in shares of Stewart Information Services by 20.4% in the third quarter. Farther Finance Advisors LLC now owns 2,794 shares of the insurance provider's stock valued at $139,000 after purchasing an additional 473 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Stewart Information Services by 93.6% during the 3rd quarter. Versant Capital Management Inc now owns 1,152 shares of the insurance provider's stock worth $57,000 after acquiring an additional 557 shares during the period. Envestnet Portfolio Solutions Inc. lifted its stake in Stewart Information Services by 34.0% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,351 shares of the insurance provider's stock worth $419,000 after purchasing an additional 1,612 shares during the period. Finally, Engineers Gate Manager LP boosted its stake in Stewart Information Services by 20.0% in the 2nd quarter. Engineers Gate Manager LP now owns 5,146 shares of the insurance provider's stock valued at $340,000 after buying an additional 858 shares in the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Stewart Information Services News Summary

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

About Stewart Information Services

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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