Stewart Information Services (NYSE:STC) Shares Up 5.8% - Still a Buy?

Key Points

• Stewart Information Services (NYSE: STC) shares rose 5.8% to about $67.95 in Friday trading, though volume was far below average.
• The company reported Q2 earnings of $1.39 per share, missing estimates, but revenue came in above expectations at $895.8 million and rose 24.5% year over year.
• Analyst sentiment is mostly positive: five analysts rate the stock Buy, one rates it Hold, and the consensus target price is $83.00.

Stewart Information Services Corporation (NYSE:STC - Get Free Report) shares rose 5.8% during mid-day trading on Friday . The stock traded as high as $67.89 and last traded at $67.9490. Approximately 34,039 shares traded hands during trading, a decline of 85% from the average daily volume of 231,511 shares. The stock had previously closed at $64.25.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on STC shares. Wall Street Zen upgraded shares of Stewart Information Services from a "hold" rating to a "buy" rating in a research report on Saturday, April 25th. Weiss Ratings raised shares of Stewart Information Services from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, June 5th. Zacks Research raised shares of Stewart Information Services to a "hold" rating in a research note on Wednesday, May 27th. Benchmark initiated coverage on Stewart Information Services in a report on Tuesday. They set a "buy" rating and a $87.00 target price on the stock. Finally, Keefe, Bruyette & Woods dropped their price target on Stewart Information Services from $81.00 to $77.00 and set an "outperform" rating for the company in a research report on Thursday, June 25th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $83.00.

Stewart Information Services Price Performance

The firm has a market cap of $2.07 billion, a price-to-earnings ratio of 14.94 and a beta of 0.99. The company has a current ratio of 2.12, a quick ratio of 2.12 and a debt-to-equity ratio of 0.39. The stock's fifty day moving average price is $67.10 and its 200-day moving average price is $66.80.

Stewart Information Services (NYSE:STC - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $1.39 earnings per share for the quarter, missing the consensus estimate of $1.63 by ($0.24). The business had revenue of $895.80 million during the quarter, compared to analysts' expectations of $838.07 million. Stewart Information Services had a return on equity of 10.14% and a net margin of 4.12%.The company's revenue was up 24.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.34 earnings per share. As a group, equities research analysts forecast that Stewart Information Services Corporation will post 5.8 earnings per share for the current fiscal year.

Stewart Information Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were given 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 yield of 3.1%. Stewart Information Services's payout ratio is presently 46.88%.

Insider Transactions at Stewart Information Services

In other news, Director C Allen Bradley, Jr. bought 1,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were purchased at an average price of $63.87 per share, with a total value of $63,870.00. Following the purchase, the director owned 25,034 shares in the company, valued at approximately $1,598,921.58. The trade was a 4.16% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 2.94% of the company's stock.

Hedge Funds Weigh In On Stewart Information Services

Several hedge funds and other institutional investors have recently added to or reduced their stakes in STC. Zimmer Partners LP purchased a new stake in Stewart Information Services during the 4th quarter worth about $24,901,000. Millennium Management LLC increased its position in shares of Stewart Information Services by 75.9% during the fourth quarter. Millennium Management LLC now owns 701,148 shares of the insurance provider's stock worth $49,263,000 after purchasing an additional 302,623 shares in the last quarter. Alyeska Investment Group L.P. purchased a new stake in Stewart Information Services in the fourth quarter valued at approximately $21,078,000. Ghisallo Capital Management LLC purchased a new position in Stewart Information Services during the 4th quarter worth $19,673,000. Finally, Vanguard Group Inc. increased its position in Stewart Information Services by 4.6% in the 4th quarter. Vanguard Group Inc. now owns 2,044,758 shares of the insurance provider's stock valued at $143,665,000 after acquiring an additional 90,233 shares during the period. Hedge funds and other institutional investors own 96.90% of the company's stock.

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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