Arrowstreet Capital Limited Partnership Purchases New Holdings in Stewart Information Services Corporation $STC

Key Points

• Arrowstreet Capital initiated a position in Stewart Information Services, purchasing 20,371 shares valued at approximately $1.25 million. Institutional investors own 96.9% of the company, with several other major funds also adding or initiating stakes.
• Analyst sentiment is mixed: recent downgrades include Zacks Research’s “strong sell” rating and Keefe, Bruyette & Woods’ cut to “market perform,” while the consensus remains “Moderate Buy” with an $81.50 price target.
• Stewart reported quarterly revenue of $895.8 million, up 24.5% year over year and above estimates, but earnings of $1.39 per share missed expectations of $1.63. The company maintains a quarterly dividend of $0.525 per share, equating to a 3.1% annualized yield.

Arrowstreet Capital Limited Partnership acquired a new position in Stewart Information Services Corporation (NYSE:STC - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 20,371 shares of the insurance provider's stock, valued at approximately $1,254,000. Arrowstreet Capital Limited Partnership owned about 0.07% of Stewart Information Services at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Zimmer Partners LP bought a new stake in Stewart Information Services during the 4th quarter valued at about $24,901,000. Millennium Management LLC boosted its holdings in shares of Stewart Information Services by 75.9% in the fourth quarter. Millennium Management LLC now owns 701,148 shares of the insurance provider's stock valued at $49,263,000 after purchasing an additional 302,623 shares during the period. Alyeska Investment Group L.P. purchased a new stake in shares of Stewart Information Services in the fourth quarter valued at approximately $21,078,000. Ghisallo Capital Management LLC bought a new position in Stewart Information Services in the fourth quarter worth approximately $19,673,000. Finally, Vanguard Group Inc. grew its stake in Stewart Information Services by 4.6% in the fourth quarter. Vanguard Group Inc. now owns 2,044,758 shares of the insurance provider's stock worth $143,665,000 after purchasing an additional 90,233 shares in the last quarter. Hedge funds and other institutional investors own 96.90% of the company's stock.

Insider Transactions at Stewart Information Services

In related news, Director C Allen Bradley, Jr. acquired 1,000 shares of Stewart Information Services stock in a transaction on Monday, June 1st. The stock was acquired at an average price of $63.87 per share, for a total transaction of $63,870.00. Following 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 legal filing with the SEC, which is accessible through this hyperlink. 2.94% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Wall Street Zen lowered Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Zacks Research lowered Stewart Information Services from a "hold" rating to a "strong sell" rating in a research note on Monday, July 27th. Keefe, Bruyette & Woods downgraded Stewart Information Services from an "outperform" rating to a "market perform" rating and decreased their price objective for the company from $77.00 to $71.00 in a report on Monday, July 27th. Stephens reaffirmed an "overweight" rating and issued a $88.00 price objective on shares of Stewart Information Services in a research note on Monday, May 18th. Finally, Weiss Ratings raised shares of Stewart Information Services from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, June 5th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $81.50.

Stewart Information Services Trading Up 0.7%

NYSE:STC opened at $68.58 on Friday. Stewart Information Services Corporation has a 52 week low of $57.10 and a 52 week high of $78.61. The firm has a 50 day moving average of $67.26 and a 200 day moving average of $66.81. The company has a quick ratio of 2.12, a current ratio of 1.98 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $2.09 billion, a price-to-earnings ratio of 15.04 and a beta of 0.98.

Stewart Information Services (NYSE:STC - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The insurance provider reported $1.39 earnings per share for the quarter, missing the consensus estimate of $1.63 by ($0.24). Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%.The business had revenue of $895.80 million for the quarter, compared to analysts' expectations of $838.07 million. During the same quarter last year, the firm earned $1.34 earnings per share. The firm's quarterly revenue was up 24.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Stewart Information Services Corporation will post 5.26 earnings per share for the current fiscal year.

Stewart Information Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a dividend of $0.525 per share. This represents a $2.10 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend was Monday, June 15th. Stewart Information Services's dividend payout ratio (DPR) is 46.05%.

Stewart Information Services 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.

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