Wall Street Zen Downgrades Stewart Information Services (NYSE:STC) to Hold

Key Points

• Wall Street Zen downgraded Stewart Information Services from buy to hold, adding to a mixed analyst picture that still shows a consensus Moderate Buy and an average price target of $83.
• The company’s latest quarterly results were mixed: EPS came in below estimates at $1.39 versus $1.63 expected, but revenue beat forecasts at $895.8 million and rose 24.5% year over year.
• STC shares were trading around $67.48, below the broader analyst price targets, while the company maintains solid balance sheet metrics and sees heavy institutional ownership at 96.9%.

Stewart Information Services (NYSE:STC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Several other research firms have also issued reports on STC. Stephens restated an "overweight" rating and set a $88.00 target price on shares of Stewart Information Services in a research report on Monday, May 18th. Weiss Ratings upgraded shares of Stewart Information Services from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, June 5th. Benchmark assumed coverage on shares of Stewart Information Services in a research note on Tuesday. They set a "buy" rating and a $87.00 price objective on the stock. Keefe, Bruyette & Woods decreased their price objective 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. Finally, Zacks Research raised shares of Stewart Information Services to a "hold" rating in a research note on Wednesday, May 27th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $83.00.

Stewart Information Services Stock Performance

Shares of Stewart Information Services stock opened at $67.48 on Friday. The firm has a fifty day moving average of $67.12 and a two-hundred day moving average of $66.80. The company has a debt-to-equity ratio of 0.39, a quick ratio of 2.12 and a current ratio of 1.98. The stock has a market capitalization of $2.05 billion, a price-to-earnings ratio of 14.80 and a beta of 0.99. Stewart Information Services has a 52 week low of $57.10 and a 52 week high of $78.61.

Stewart Information Services (NYSE:STC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The insurance provider reported $1.39 EPS for the quarter, missing analysts' consensus estimates of $1.63 by ($0.24). The company had revenue of $895.80 million for the quarter, compared to analyst estimates of $838.07 million. Stewart Information Services had a return on equity of 10.02% and a net margin of 4.12%.The firm's revenue for the quarter was up 24.5% on a year-over-year basis. During the same period last year, the firm earned $1.34 earnings per share. As a group, equities research analysts predict that Stewart Information Services will post 5.8 EPS for the current year.

Insider Buying and Selling at Stewart Information Services

In other Stewart Information Services news, Director C Allen Bradley, Jr. acquired 1,000 shares of the firm's 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 owned 25,034 shares of the company's stock, 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.94% of the stock is owned by company insiders.

Institutional Trading of Stewart Information Services

Hedge funds have recently bought and sold shares of the stock. Zimmer Partners LP acquired a new position in shares of Stewart Information Services in the fourth quarter valued at approximately $24,901,000. Millennium Management LLC raised its holdings 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 acquiring an additional 302,623 shares during the period. Alyeska Investment Group L.P. bought a new stake in Stewart Information Services in the 4th quarter valued at $21,078,000. Ghisallo Capital Management LLC bought a new stake in Stewart Information Services in the 4th quarter valued at $19,673,000. Finally, Vanguard Group Inc. boosted its stake 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 worth $143,665,000 after purchasing an additional 90,233 shares during the period. 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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