Stewart Information Services (NYSE:STC) Stock Falls 6.6% - Should You Sell?

Key Points

• Stewart Information Services shares fell 6.6% to about $45.99 after the company reported third-quarter revenue growth of 13% to $900.7 million, but missed revenue and adjusted EPS expectations.
• Profitability weakened significantly: GAAP net income dropped to $30.3 million from $44.3 million, diluted EPS declined to $0.98 from $1.55, and operating cash flow fell to $46.6 million from $92.6 million.
• Analyst sentiment remains mixed, with several forecast and price-target reductions, although the stock retains a “Moderate Buy” consensus and an average target of $80.25. The company also raised its quarterly dividend to $0.55 per share, implying a roughly 4.8% yield.

Stewart Information Services Corporation (NYSE:STC - Get Free Report)'s share price traded down 6.6% during trading on Friday. The company traded as low as $46.22 and last traded at $45.9850. Approximately 208,432 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 246,935 shares. The stock had previously closed at $49.24.

Stewart Information Services News Summary

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% increase in real estate solutions revenue. The latter benefited significantly from the MCS acquisition and higher credit-information and valuation-services revenue. Stewart Reports Third Quarter 2026 Results
• Neutral Sentiment: Management discussed the quarterly performance and business outlook during the October 22 earnings call, giving investors additional context on operating trends and the impact of acquisitions. STC Q3 2026 Earnings Call Transcript
• Negative Sentiment: Profitability deteriorated despite the revenue growth. GAAP net income attributable to Stewart fell to $30.3 million from $44.3 million a year earlier, while diluted GAAP EPS declined to $0.98 from $1.55. Adjusted EPS was $1.33, below the $1.50 analyst consensus, and revenue also narrowly missed expectations of $903.7 million. Stewart Reports Third-Quarter Results
• Negative Sentiment: Analysts at DOWLING & PARTN reduced their FY2026 EPS forecast to $4.89 from $5.26, FY2027 to $5.20 from $6.25, and FY2028 to $6.05 from $7.05. The cuts reinforce concerns that earnings recovery may be slower than previously expected. STC Analyst Estimate Updates
• Negative Sentiment: Operating cash flow dropped to $46.6 million from $92.6 million in the prior-year quarter. Recent reported insider activity also showed sales without purchases, adding a modest negative signal for sentiment. Stewart Third-Quarter Revenue and EPS Report

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Citigroup reiterated a "market outperform" rating on shares of Stewart Information Services in a research note on Monday, October 12th. Zacks Research raised shares of Stewart Information Services from a "strong sell" rating to a "hold" rating in a research report 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 target for the stock from $77.00 to $71.00 in a research report on Monday, July 27th. Wall Street Zen lowered Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, Citizens Jmp cut their target price on Stewart Information Services from $80.00 to $75.00 and set a "market outperform" rating on the stock in a research note on Monday, October 12th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Stewart Information Services currently has an average rating of "Moderate Buy" and an average target price of $80.25.

Stewart Information Services Stock Performance

The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of 10.07 and a beta of 1.04. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.98 and a quick ratio of 1.98. The firm's fifty day simple moving average is $61.17 and its 200 day simple moving average is $65.13.

Stewart Information Services (NYSE:STC - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The insurance provider reported $1.33 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.17). The company had revenue of $900.70 million for the quarter, compared to analysts' expectations of $903.67 million. Stewart Information Services had a net margin of 3.58% and a return on equity of 9.42%. During the same quarter in the prior year, the firm earned $1.64 earnings per share. On average, sell-side analysts forecast that Stewart Information Services Corporation will post 4.89 EPS for the current year.

Stewart Information Services Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a dividend of $0.55 per share. 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 annualized dividend and a dividend yield of 4.8%. Stewart Information Services's dividend payout ratio is currently 48.25%.

Insider Activity at Stewart Information Services

In other news, insider Brian Glaze sold 1,500 shares of the business's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $69.16, for a total value 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. The trade was a 11.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.94% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Stewart Information Services

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kings Path Partners LLC bought a new stake in shares of Stewart Information Services in the 3rd quarter valued at approximately $52,000. Farther Finance Advisors LLC lifted its position in shares of Stewart Information Services by 20.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,794 shares of the insurance provider's stock worth $139,000 after buying an additional 473 shares during the period. Versant Capital Management Inc lifted its position in shares of Stewart Information Services by 93.6% during the 3rd quarter. Versant Capital Management Inc now owns 1,152 shares of the insurance provider's stock worth $57,000 after buying an additional 557 shares during the period. Envestnet Portfolio Solutions Inc. boosted its stake in Stewart Information Services by 34.0% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,351 shares of the insurance provider's stock valued at $419,000 after buying an additional 1,612 shares in the last quarter. Finally, Engineers Gate Manager LP grew its position in Stewart Information Services by 20.0% in the second quarter. Engineers Gate Manager LP now owns 5,146 shares of the insurance provider's stock valued at $340,000 after acquiring an additional 858 shares during the period. Institutional investors and hedge funds own 96.90% of the company's stock.

Stewart Information Services Company Profile

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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