Heartland Advisors Inc. Invests $8.25 Million in Stewart Information Services Corporation $STC

Key Points

• Heartland Advisors purchased 125,000 Stewart Information Services shares worth approximately $8.25 million, while institutional investors and hedge funds collectively own 96.9% of the company.
• Stewart reported quarterly revenue of $895.8 million, up 24.5% year over year and above estimates, but earnings per share of $1.39 missed consensus by $0.24. The company pays a quarterly dividend of $0.525, equivalent to a 3.0% yield.
• STC shares opened at $69.14, below the analyst consensus price target of $81.50. Ratings remain mixed, though the overall consensus is “Moderate Buy.”

Heartland Advisors Inc. bought a new stake in shares of Stewart Information Services Corporation (NYSE:STC - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 125,000 shares of the insurance provider's stock, valued at approximately $8,252,000. Heartland Advisors Inc. owned approximately 0.41% of Stewart Information Services at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the company. First National Bank of Omaha purchased a new stake in Stewart Information Services during the second quarter worth $548,000. Meeder Asset Management Inc. purchased a new position in Stewart Information Services in the second quarter valued at $948,000. BlackRock Inc. purchased a new position in Stewart Information Services in the second quarter valued at $347,274,000. Deutsche Bank AG acquired a new position in shares of Stewart Information Services in the second quarter worth about $2,191,000. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Stewart Information Services in the second quarter worth about $84,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Stewart Information Services Stock Up 0.3%

STC stock opened at $69.14 on Friday. Stewart Information Services Corporation has a 52 week low of $57.10 and a 52 week high of $78.61. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 0.39. The firm has a 50-day simple moving average of $67.88 and a 200-day simple moving average of $66.88. The stock has a market capitalization of $2.11 billion, a P/E ratio of 15.16 and a beta of 0.98.

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

Stewart Information Services Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a $0.525 dividend. This represents a $2.10 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Monday, June 15th. Stewart Information Services's dividend payout ratio (DPR) is 46.05%.

Wall Street Analyst Weigh In

STC has been the topic of a number of analyst reports. Wall Street Zen cut Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Keefe, Bruyette & Woods cut Stewart Information Services from an "outperform" rating to a "market perform" rating and reduced their price target for the stock from $77.00 to $71.00 in a report on Monday, July 27th. Benchmark assumed coverage on Stewart Information Services in a research report on Tuesday, July 21st. They set a "buy" rating and a $87.00 price target on the stock. Stephens reissued an "overweight" rating and issued a $88.00 price objective on shares of Stewart Information Services in a report on Monday, May 18th. Finally, Zacks Research cut Stewart Information Services from a "hold" rating to a "strong sell" rating in a research report on Monday, July 27th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $81.50.

Insider Activity

In other news, Director C Allen Bradley, Jr. purchased 1,000 shares of the stock in a transaction dated Monday, June 1st. The shares were purchased at an average cost of $63.87 per share, with a total value of $63,870.00. Following the completion of the purchase, the director directly owned 25,034 shares of the company's stock, valued at approximately $1,598,921.58. The trade was a 4.16% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 2.94% of the stock is owned by corporate insiders.

About Stewart Information Services

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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