Stewart Information Services (NYSE:STC) Posts Earnings Results, Misses Expectations By $0.24 EPS

Key Points

• Stewart Information Services missed earnings expectations, reporting $1.39 EPS versus the $1.63 consensus estimate, a shortfall of $0.24 per share.
• The company beat revenue estimates, posting $895.8 million in quarterly revenue compared with analyst expectations of $838.07 million.
• The stock traded lower after the report, while the company also maintained a 3.0% dividend yield from its quarterly payout of $0.525 per share.

Stewart Information Services (NYSE:STC - Get Free Report) released its earnings results on Wednesday. The insurance provider reported $1.39 EPS for the quarter, missing the consensus estimate of $1.63 by ($0.24), FiscalAI reports. Stewart Information Services had a net margin of 4.19% and a return on equity of 10.07%. The business had revenue of $895.80 million during the quarter, compared to analyst estimates of $838.07 million.

Stewart Information Services Trading Down 0.9%

Shares of Stewart Information Services stock traded down $0.62 during trading hours on Wednesday, hitting $69.51. The company's stock had a trading volume of 196,678 shares, compared to its average volume of 227,967. The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $2.11 billion, a PE ratio of 15.52 and a beta of 0.99. The business has a fifty day moving average of $67.11 and a 200 day moving average of $66.84. Stewart Information Services has a 1-year low of $57.10 and a 1-year high of $78.61.

Stewart Information Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a dividend of $0.525 per share. This represents a $2.10 annualized dividend and a yield of 3.0%. The ex-dividend date was Monday, June 15th. Stewart Information Services's payout ratio is currently 46.87%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on STC shares. Wall Street Zen raised Stewart Information Services from a "hold" rating to a "buy" rating in a research note on Saturday, April 25th. Zacks Research raised shares of Stewart Information Services to a "hold" rating in a research note on Wednesday, May 27th. Weiss Ratings upgraded shares of Stewart Information Services from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, June 5th. Stephens reissued an "overweight" rating and issued a $88.00 target price on shares of Stewart Information Services in a research report on Monday, May 18th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Stewart Information Services from $81.00 to $77.00 and set an "outperform" rating for the company in a report on Thursday, June 25th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $83.00.

Insiders Place Their Bets

In related news, Director C Allen Bradley, Jr. purchased 1,000 shares of Stewart Information Services stock in a transaction that occurred on Monday, June 1st. The shares were purchased at an average cost of $63.87 per share, with a total value of $63,870.00. Following the transaction, the director owned 25,034 shares of the company's stock, valued at approximately $1,598,921.58. The trade was a 4.16% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO David C. Hisey sold 10,992 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $71.28, for a total value of $783,509.76. Following the completion of the transaction, the chief financial officer owned 61,929 shares of the company's stock, valued at approximately $4,414,299.12. This represents a 15.07% decrease in their position. The SEC filing for this sale provides additional information. 2.94% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd acquired a new stake in Stewart Information Services during the 4th quarter valued at $43,000. Kemnay Advisory Services Inc. acquired a new position in Stewart Information Services in the 4th quarter worth $66,000. Quadrant Capital Group LLC purchased a new position in Stewart Information Services in the 3rd quarter valued at about $143,000. Tower Research Capital LLC TRC boosted its position in Stewart Information Services by 70.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,271 shares of the insurance provider's stock valued at $148,000 after buying an additional 935 shares during the last quarter. Finally, State of Wyoming grew its stake in shares of Stewart Information Services by 216.1% during the second quarter. State of Wyoming now owns 2,658 shares of the insurance provider's stock valued at $173,000 after acquiring an additional 1,817 shares in the last quarter. 96.90% of the stock is owned by institutional investors and hedge funds.

Stewart Information Services Company Profile

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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