Stewart Information Services (NYSE:STC) Shares Gap Down on Disappointing Earnings

Shares of Stewart Information Services Corporation (NYSE:STC) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $69.71, but opened at $63.96. Stewart Information Services shares last traded at $66.2030, with a volume of 81,785 shares traded.

The insurance provider reported $1.39 earnings per share for the quarter, missing the consensus estimate of $1.63 by ($0.24). The company had revenue of $895.80 million for the quarter, compared to analysts’ expectations of $838.07 million. Stewart Information Services had a return on equity of 10.07% and a net margin of 4.19%.The business’s quarterly revenue was up 24.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.34 EPS.

Stewart Information Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a dividend of $0.525 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 annualized dividend and a dividend yield of 3.2%. Stewart Information Services’s dividend payout ratio is presently 46.88%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the company. Zacks Research raised Stewart Information Services to a “hold” rating in a research note on Wednesday, May 27th. Weiss Ratings upgraded Stewart Information Services from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, June 5th. Benchmark initiated coverage on Stewart Information Services in a report on Tuesday. They issued a “buy” rating and a $87.00 price target for the company. Stephens reiterated an “overweight” rating and set a $88.00 price objective on shares of Stewart Information Services in a report on Monday, May 18th. Finally, Wall Street Zen raised shares of Stewart Information Services from a “hold” rating to a “buy” rating in a research report on Saturday, April 25th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $83.00.

Insider Buying and Selling at Stewart Information Services

In other news, CFO David C. Hisey sold 10,992 shares of the stock in a transaction dated 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 sale, the chief financial officer owned 61,929 shares in the company, valued at approximately $4,414,299.12. This trade represents a 15.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director C Allen Bradley, Jr. bought 1,000 shares of the stock in a transaction dated Monday, June 1st. The stock was bought 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 of the company’s stock, valued at approximately $1,598,921.58. This represents a 4.16% increase in their position. The disclosure for this purchase is available in the SEC filing. 2.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Stewart Information Services

A number of institutional investors and hedge funds have recently bought and sold shares of STC. Royal Bank of Canada raised its stake in shares of Stewart Information Services by 2.4% during the first quarter. Royal Bank of Canada now owns 128,363 shares of the insurance provider’s stock valued at $9,158,000 after purchasing an additional 3,022 shares during the period. AQR Capital Management LLC boosted its stake in shares of Stewart Information Services by 6.0% in the first quarter. AQR Capital Management LLC now owns 8,583 shares of the insurance provider’s stock valued at $612,000 after purchasing an additional 483 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Stewart Information Services by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,105 shares of the insurance provider’s stock valued at $1,149,000 after purchasing an additional 712 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in Stewart Information Services by 44,842.9% during the 1st quarter. Jones Financial Companies Lllp now owns 3,146 shares of the insurance provider’s stock valued at $224,000 after purchasing an additional 3,139 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Stewart Information Services by 10.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 85,522 shares of the insurance provider’s stock worth $6,102,000 after buying an additional 7,923 shares during the period. Hedge funds and other institutional investors own 96.90% of the company’s stock.

Stewart Information Services Price Performance

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 company’s 50 day moving average is $67.17 and its 200-day moving average is $66.84. The stock has a market cap of $2.01 billion, a PE ratio of 14.77 and a beta of 0.99.

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.