Stewart Information Services (NYSE:STC) Reaches New 12-Month Low Following Weak Earnings

Key Points

• Stewart Information Services shares fell to a new 52-week low of $48.20 after adjusted third-quarter EPS came in at $1.33, below the $1.50 consensus estimate. GAAP diluted EPS declined to $0.98 from $1.55 a year earlier.
• Revenue rose 13% year over year to $900.7 million, driven by growth in the title segment and a 68% increase in real estate solutions revenue, but operating cash flow dropped to $46.6 million from $92.6 million.
• The company increased its quarterly dividend to $0.55, implying an annualized yield of about 4.6%. Analysts remain cautiously positive, with a “Moderate Buy” consensus and an average price target of $80.25, although some firms have lowered their estimates and targets.

Stewart Information Services Corporation (NYSE:STC - Get Free Report)'s share price reached a new 52-week low during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $48.20 and last traded at $48.2850, with a volume of 150,048 shares trading hands. The stock had previously closed at $52.57.

The insurance provider reported $1.33 EPS for the quarter, missing analysts' consensus estimates of $1.50 by ($0.17). The business had revenue of $900.70 million during the quarter, compared to the consensus estimate of $903.67 million. Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%. During the same period last year, the firm earned $1.64 EPS.

Stewart Information Services Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a $0.55 dividend. This is a boost from Stewart Information Services's previous quarterly dividend of $0.5250. The ex-dividend date was Tuesday, September 15th. This represents a $2.20 dividend on an annualized basis and a yield of 4.6%. Stewart Information Services's dividend payout ratio (DPR) is 48.25%.

Stewart Information Services News Roundup

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, supported by 5% growth in the title segment and a 68% rise in real estate solutions revenue to $196.5 million. The real estate solutions growth was driven largely by the MCS acquisition and higher credit information and valuation-services revenue. Stewart Reports Third Quarter 2026 Results
• Neutral Sentiment: Management reported $46.6 million of operating cash flow for the quarter, down from $92.6 million a year earlier. The company scheduled its third-quarter earnings call for October 22, where investors may seek additional detail on margins, acquisition performance and the outlook. Stewart Third-Quarter Revenue and EPS Report
• Negative Sentiment: Adjusted third-quarter EPS was $1.33, below the $1.50 consensus estimate, while revenue slightly missed the $903.67 million forecast. GAAP diluted EPS fell to $0.98 from $1.55 a year earlier, and adjusted net income declined to $41.2 million from $46.7 million. Stewart Information Services Q3 Profit Falls 32%
• Negative Sentiment: DOWLING & PARTN lowered its FY2026 EPS forecast to $4.89 from $5.26, below the current consensus estimate of $5.26. The estimate cut reinforces concerns that weaker earnings conversion and lower profitability could persist beyond the quarter. Stewart Information Services Analyst Estimate Update

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Weiss Ratings lowered Stewart Information Services from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday. Citizens Jmp dropped their price target on shares of Stewart Information Services from $80.00 to $75.00 and set a "market outperform" rating on the stock in a research report on Monday, October 12th. Benchmark started coverage on shares of Stewart Information Services in a report on Tuesday, July 21st. They issued a "buy" rating and a $87.00 price objective for the company. Zacks Research upgraded Stewart Information Services from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 22nd. Finally, Keefe, Bruyette & Woods downgraded shares of 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 research report on Monday, July 27th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $80.25.

Insider Activity

In related news, insider Brian Glaze sold 1,500 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $69.16, for a total transaction of $103,740.00. Following the completion of the sale, the insider directly owned 11,784 shares in the company, valued at approximately $814,981.44. This trade represents a 11.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 2.94% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in STC. Bank of America Corp DE purchased a new stake in Stewart Information Services in the second quarter valued at approximately $10,991,000. Deutsche Bank AG purchased a new stake in shares of Stewart Information Services in the 2nd quarter valued at $2,191,000. The Manufacturers Life Insurance Company purchased a new position in Stewart Information Services during the 2nd quarter valued at about $987,000. BlackRock Inc. purchased a new position in Stewart Information Services during the 2nd quarter valued at about $347,274,000. Finally, Empowered Funds LLC acquired a new position in Stewart Information Services in the 2nd quarter valued at about $8,211,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

Stewart Information Services Stock Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.98 and a current ratio of 1.98. The company has a market capitalization of $1.47 billion, a price-to-earnings ratio of 10.59 and a beta of 1.04. The firm has a 50-day simple moving average of $61.54 and a two-hundred day simple moving average of $65.21.

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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