Stewart Information Services (NYSE:STC) Issues Quarterly Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• Stewart Information Services reported adjusted EPS of $0.78, beating the consensus by $0.25, and revenue of $778.4 million versus the expected $730.43 million.
• The company declared a quarterly dividend of $0.525 (annualized $2.10), representing a 3.1% yield and a payout ratio of about 52%.
• Analysts maintain a consensus Buy rating with an average price target of $80, while institutional investors own roughly 96.9% of the stock and an insider recently purchased 1,000 shares.

Stewart Information Services (NYSE:STC - Get Free Report) released its earnings results on Wednesday. The insurance provider reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.25, FiscalAI reports. Stewart Information Services had a return on equity of 9.32% and a net margin of 3.95%.The firm had revenue of $778.40 million for the quarter, compared to the consensus estimate of $730.43 million.

Stewart Information Services Trading Up 1.2%

NYSE:STC traded up $0.83 on Wednesday, hitting $68.08. 266,689 shares of the stock were exchanged, compared to its average volume of 243,761. The stock has a market cap of $2.07 billion, a PE ratio of 16.85 and a beta of 1.03. The company has a current ratio of 2.21, a quick ratio of 2.21 and a debt-to-equity ratio of 0.39. The stock has a fifty day moving average of $65.03 and a 200-day moving average of $68.81. Stewart Information Services has a fifty-two week low of $56.39 and a fifty-two week high of $78.61.

Stewart Information Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were paid a dividend of $0.525 per share. The ex-dividend date was Monday, March 16th. This represents a $2.10 annualized dividend and a yield of 3.1%. Stewart Information Services's dividend payout ratio is currently 51.98%.

Insider Buying and Selling

In related news, Director C Allen Bradley, Jr. bought 1,000 shares of the stock in a transaction dated Tuesday, March 10th. The stock was acquired at an average price of $65.34 per share, for a total transaction of $65,340.00. Following the completion of the purchase, the director owned 21,243 shares in the company, valued at $1,388,017.62. This represents a 4.94% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Stewart Information Services

A number of large investors have recently modified their holdings of the stock. Zimmer Partners LP bought a new position in Stewart Information Services during the 4th quarter worth approximately $24,901,000. Millennium Management LLC lifted its holdings in Stewart Information Services by 75.9% during the 4th quarter. Millennium Management LLC now owns 701,148 shares of the insurance provider's stock worth $49,263,000 after buying an additional 302,623 shares during the last quarter. Alyeska Investment Group L.P. bought a new position in Stewart Information Services during the 4th quarter worth approximately $21,078,000. Ghisallo Capital Management LLC bought a new position in Stewart Information Services during the 4th quarter worth approximately $19,673,000. Finally, Two Sigma Investments LP lifted its holdings in Stewart Information Services by 193.0% during the 3rd quarter. Two Sigma Investments LP now owns 118,168 shares of the insurance provider's stock worth $8,664,000 after buying an additional 77,844 shares during the last quarter. Institutional investors and hedge funds own 96.90% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Wall Street Zen downgraded Stewart Information Services from a "buy" rating to a "hold" rating in a research report on Saturday, April 11th. Stephens upgraded Stewart Information Services from an "equal weight" rating to an "overweight" rating and set a $82.00 target price on the stock in a research report on Friday, February 27th. Keefe, Bruyette & Woods dropped their price target on Stewart Information Services from $82.00 to $78.00 and set an "outperform" rating for the company in a research note on Friday, April 10th. Weiss Ratings restated a "buy (b)" rating on shares of Stewart Information Services in a research note on Friday, March 27th. Finally, Citizens Jmp began coverage on Stewart Information Services in a research note on Monday, February 2nd. They set a "market outperform" rating and a $80.00 price target for the company. Four research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Stewart Information Services currently has a consensus rating of "Buy" and an average target price of $80.00.

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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