Stewart Information Services Corporation (NYSE:STC) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Six analysts give Stewart Information Services a consensus “Moderate Buy” rating, with four buys, one hold and one sell. The average 12-month price target is $81.50 versus the reported share price of $65.38.
• Quarterly results were mixed: Stewart reported earnings of $1.39 per share, below the $1.63 consensus estimate, while revenue rose 24.5% year over year to $895.8 million, exceeding expectations.
• Shareholder returns and institutional interest remain notable: The company pays a $2.10 annualized dividend, yielding about 3.2%, while institutional investors own 96.9% of the stock and recently acquired significant positions, including BlackRock’s reported $347.3 million stake.

Shares of Stewart Information Services Corporation (NYSE:STC - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the six analysts that are currently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation and four have given a buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $81.50.

Several brokerages have commented on STC. Zacks Research downgraded shares of Stewart Information Services from a "hold" rating to a "strong sell" rating in a research report on Monday, July 27th. Weiss Ratings raised Stewart Information Services from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, June 5th. Benchmark initiated coverage on Stewart Information Services in a research note on Tuesday, July 21st. They issued a "buy" rating and a $87.00 price target on the stock. Stephens reissued an "overweight" rating and set a $88.00 price target on shares of Stewart Information Services in a report on Monday, May 18th. Finally, Wall Street Zen downgraded Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th.

Stewart Information Services Trading Down 0.5%

STC opened at $65.38 on Wednesday. The stock has a market capitalization of $1.99 billion, a price-to-earnings ratio of 14.34 and a beta of 0.98. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 0.39. Stewart Information Services has a twelve month low of $57.10 and a twelve month high of $78.61. The company has a 50-day simple moving average of $67.39 and a 200 day simple moving average of $66.83.

Stewart Information Services (NYSE:STC - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The insurance provider reported $1.39 EPS for the quarter, missing the consensus estimate 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 firm had revenue of $895.80 million during the quarter, compared to analyst estimates of $838.07 million. During the same quarter in the previous year, the firm posted $1.34 earnings per share. Stewart Information Services's quarterly revenue was up 24.5% compared to the same quarter last year. Analysts predict that Stewart Information Services will post 5.26 EPS for the current fiscal year.

Stewart Information Services Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were issued a $0.525 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 dividend on an annualized basis and a dividend yield of 3.2%. Stewart Information Services's dividend payout ratio is 46.05%.

Insider Activity

In related news, Director C Allen Bradley, Jr. acquired 1,000 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was acquired at an average cost of $63.87 per share, for a total transaction of $63,870.00. Following the transaction, the director directly owned 25,034 shares in the company, valued at $1,598,921.58. This trade represents a 4.16% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 2.94% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Heartland Advisors Inc. bought a new position in shares of Stewart Information Services in the 2nd quarter valued at $8,252,000. First National Bank of Omaha bought a new stake in Stewart Information Services during the 2nd quarter worth $548,000. Meeder Asset Management Inc. bought a new stake in Stewart Information Services during the 2nd quarter worth $948,000. BlackRock Inc. acquired a new position in Stewart Information Services in the 2nd quarter worth about $347,274,000. Finally, Deutsche Bank AG acquired a new position in Stewart Information Services in the 2nd quarter worth about $2,191,000. 96.90% of the stock is currently owned by institutional investors and hedge funds.

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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