DOWLING & PARTN Brokers Decrease Earnings Estimates for STC

Key Points

• DOWLING & PARTN lowered its FY2027 EPS estimate for Stewart Information Services to $5.20 from $6.25 and forecast FY2028 EPS of $6.05, signaling expectations for a slower earnings recovery.
• Stewart reported quarterly adjusted EPS of $1.33, missing the $1.50 consensus estimate, while revenue of $900.7 million was slightly below expectations and earnings declined from the prior year.
• Despite recent analyst downgrades and price-target reductions, Stewart retains a “Moderate Buy” consensus rating with an average target price of $80.25; its quarterly dividend increased to $0.55 per share.

Stewart Information Services Corporation (NYSE:STC - Free Report) - Stock analysts at DOWLING & PARTN decreased their FY2027 EPS estimates for shares of Stewart Information Services in a research report issued to clients and investors on Tuesday, October 20th. DOWLING & PARTN analyst G. Dunn now expects that the insurance provider will post earnings of $5.20 per share for the year, down from their previous forecast of $6.25. The consensus estimate for Stewart Information Services' current full-year earnings is $4.89 per share. DOWLING & PARTN also issued estimates for Stewart Information Services' FY2028 earnings at $6.05 EPS.

Other research analysts also recently issued research reports about the stock. Weiss Ratings downgraded shares of Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday. Benchmark began coverage on shares of Stewart Information Services in a research note on Tuesday, July 21st. They set a "buy" rating and a $87.00 price objective on the stock. Zacks Research upgraded shares of Stewart Information Services from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 22nd. Keefe, Bruyette & Woods downgraded shares of Stewart Information Services from an "outperform" rating to a "market perform" rating and reduced their price objective for the stock from $77.00 to $71.00 in a research note on Monday, July 27th. Finally, Citizens Jmp lowered their target price on Stewart Information Services from $80.00 to $75.00 and set a "market outperform" rating for the company in a report on Monday, October 12th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $80.25.

Stewart Information Services Stock Performance

Shares of Stewart Information Services stock opened at $49.41 on Friday. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 0.39. The stock's fifty day moving average price is $61.17 and its 200-day moving average price is $65.13. The firm has a market cap of $1.51 billion, a P/E ratio of 10.84 and a beta of 1.04. Stewart Information Services has a 12 month low of $47.85 and a 12 month high of $78.61.

Stewart Information Services (NYSE:STC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 21st. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.50 by ($0.17). Stewart Information Services had a net margin of 3.58% and a return on equity of 9.42%. The firm had revenue of $900.70 million during the quarter, compared to analysts' expectations of $903.67 million. During the same quarter in the previous year, the firm posted $1.64 EPS.

Stewart Information Services Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a $0.55 dividend. This is an increase from Stewart Information Services's previous quarterly dividend of $0.5250. This represents a $2.20 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date of this dividend was Tuesday, September 15th. Stewart Information Services's dividend payout ratio is 48.25%.

Insider Transactions at Stewart Information Services

In other Stewart Information Services news, insider Brian Glaze sold 1,500 shares of Stewart Information Services stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $69.16, for a total transaction of $103,740.00. Following the completion of the sale, the insider owned 11,784 shares of the company's stock, valued at approximately $814,981.44. The trade was a 11.29% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 2.94% of the stock is owned by company insiders.

Institutional Investors Weigh In On Stewart Information Services

A number of institutional investors and hedge funds have recently modified their holdings of STC. BlackRock Inc. acquired a new position in Stewart Information Services in the 2nd quarter worth approximately $347,274,000. Bank of New York Mellon Corp acquired a new stake in Stewart Information Services during the 2nd quarter valued at approximately $17,759,000. Bank of America Corp DE boosted its holdings in shares of Stewart Information Services by 1.2% in the 1st quarter. Bank of America Corp DE now owns 215,213 shares of the insurance provider's stock valued at $13,253,000 after acquiring an additional 2,631 shares during the last quarter. Principal Financial Group Inc. boosted its holdings in shares of 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 valued at $9,044,000 after acquiring an additional 13,317 shares during the last quarter. Finally, Heartland Advisors Inc. acquired a new stake in shares of Stewart Information Services in the second quarter worth $8,252,000. Institutional investors and hedge funds own 96.90% of the company's stock.

Key Headlines Impacting Stewart Information Services

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

• Positive Sentiment: Third-quarter revenue increased 13% year over year to $900.7 million, while real estate solutions revenue rose 68% to $196.5 million, helped by the MCS acquisition and higher credit-information and valuation-services revenue. Title-segment operating revenue also grew 5%. Stewart Reports Third Quarter 2026 Results
• Neutral Sentiment: Management discussed the results and business outlook during the October 22 earnings call, giving investors additional detail on operating trends and the integration of recent investments. STC Q3 2026 Earnings Call Transcript
• Negative Sentiment: Adjusted earnings per share came in at $1.33, below the $1.50 analyst consensus, while GAAP diluted EPS was $0.98. Adjusted net income fell to $41.2 million from $46.7 million a year earlier; GAAP net income declined to $30.3 million from $44.3 million. Operating cash flow also dropped to $46.6 million from $92.6 million. Stewart Third-Quarter Earnings Results
• Negative Sentiment: DOWLING & PARTN cut its FY2026 EPS estimate to $4.89 from $5.26, FY2027 to $5.20 from $6.25, and FY2028 to $6.05 from $7.05. The revisions reinforce concerns that earnings recovery may be slower than previously expected. 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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