Royal Bank of Canada Cuts Stock Position in Stewart Information Services Corporation $STC

Key Points

• Royal Bank of Canada cut its Stewart Information Services stake by 72.3% in the first quarter, selling 37,939 shares and retaining 14,534 shares valued at approximately $895,000. Institutional investors collectively own 96.9% of the company.
• Analyst sentiment remains mixed but leans positive: the stock has a consensus “Moderate Buy” rating and an $81.50 price target, compared with a recent price of $69.14. Target prices range from $71 to $88.
• 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 the $1.63 consensus. The company also maintains a quarterly dividend of $0.525, implying a 3.0% annual yield.

Royal Bank of Canada decreased its position in shares of Stewart Information Services Corporation (NYSE:STC - Free Report) by 72.3% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 14,534 shares of the insurance provider's stock after selling 37,939 shares during the period. Royal Bank of Canada's holdings in Stewart Information Services were worth $895,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd purchased a new stake in Stewart Information Services during the fourth quarter worth about $43,000. Horizon Investments LLC purchased a new position in shares of Stewart Information Services in the fourth quarter valued at approximately $65,000. Kemnay Advisory Services Inc. purchased a new position in shares of Stewart Information Services in the fourth quarter valued at approximately $66,000. Clearstead Advisors LLC grew its holdings in shares of Stewart Information Services by 50.9% in the fourth quarter. Clearstead Advisors LLC now owns 981 shares of the insurance provider's stock valued at $69,000 after purchasing an additional 331 shares in the last quarter. Finally, State of Wyoming acquired a new position in shares of Stewart Information Services in the first quarter valued at approximately $118,000. 96.90% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

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

Stewart Information Services Stock Up 0.3%

STC stock opened at $69.14 on Friday. The company's 50 day moving average price is $67.88 and its 200 day moving average price is $66.88. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.98 and a current ratio of 1.98. Stewart Information Services Corporation has a fifty-two week low of $57.10 and a fifty-two week high of $78.61. The firm has a market capitalization of $2.11 billion, a price-to-earnings 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 (EPS) for the quarter, missing analysts' consensus estimates 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 firm had revenue of $895.80 million during the quarter, compared to analysts' expectations of $838.07 million. During the same quarter in the prior year, the firm earned $1.34 EPS. The firm's revenue was up 24.5% compared to the same quarter last year. On average, equities research analysts anticipate that Stewart Information Services Corporation will post 5.26 EPS for the current fiscal year.

Stewart Information Services Announces Dividend

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

Insider Buying and Selling at Stewart Information Services

In other news, Director C Allen Bradley, Jr. acquired 1,000 shares of Stewart Information Services stock in a transaction dated Monday, June 1st. The shares were acquired at an average cost of $63.87 per share, for a total transaction of $63,870.00. Following the acquisition, the director owned 25,034 shares of the company's stock, valued at $1,598,921.58. This trade represents a 4.16% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 2.94% of the company's stock.

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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