Stewart Information Services (NYSE:STC) Stock Falls 6.6% – Here’s Why

by · The Markets Daily

Stewart Information Services Corporation (NYSE:STC – Get Free Report)’s stock price dropped 6.6% during trading on Friday. The stock traded as low as $46.22 and last traded at $45.9850. Approximately 208,432 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 246,935 shares. The stock had previously closed at $49.24.

Key Stewart Information Services News

Here are the key news stories impacting Stewart Information Services this week:

  • Positive Sentiment: Third-quarter revenue increased 13% year over year to $900.7 million, supported by 5% growth in the title segment and a 68% increase in real estate solutions revenue. The latter benefited significantly from the MCS acquisition and higher credit-information and valuation-services revenue. Stewart Reports Third Quarter 2026 Results
  • Neutral Sentiment: Management discussed the quarterly performance and business outlook during the October 22 earnings call, giving investors additional context on operating trends and the impact of acquisitions. STC Q3 2026 Earnings Call Transcript
  • Negative Sentiment: Profitability deteriorated despite the revenue growth. GAAP net income attributable to Stewart fell to $30.3 million from $44.3 million a year earlier, while diluted GAAP EPS declined to $0.98 from $1.55. Adjusted EPS was $1.33, below the $1.50 analyst consensus, and revenue also narrowly missed expectations of $903.7 million. Stewart Reports Third-Quarter Results
  • Negative Sentiment: Analysts at DOWLING & PARTN reduced their FY2026 EPS forecast to $4.89 from $5.26, FY2027 to $5.20 from $6.25, and FY2028 to $6.05 from $7.05. The cuts reinforce concerns that earnings recovery may be slower than previously expected. STC Analyst Estimate Updates
  • Negative Sentiment: Operating cash flow dropped to $46.6 million from $92.6 million in the prior-year quarter. Recent reported insider activity also showed sales without purchases, adding a modest negative signal for sentiment. Stewart Third-Quarter Revenue and EPS Report

Wall Street Analyst Weigh In

Several analysts have weighed in on STC shares. Citigroup reaffirmed a “market outperform” rating on shares of Stewart Information Services in a research note on Monday, October 12th. Benchmark assumed coverage on shares of Stewart Information Services in a research note on Tuesday, July 21st. They issued a “buy” rating and a $87.00 target price for the company. Weiss Ratings lowered Stewart Information Services from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday. Wall Street Zen cut Stewart Information Services from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Finally, Citizens Jmp cut their price objective on Stewart Information Services from $80.00 to $75.00 and set a “market outperform” rating for the company in a research report on Monday, October 12th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $80.25.

Read Our Latest Research Report on STC

Stewart Information Services Trading Down 7.3%

The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 0.39. The firm has a market cap of $1.39 billion, a price-to-earnings ratio of 10.07 and a beta of 1.04. The business’s fifty day moving average is $61.17 and its two-hundred day moving average is $65.13.

Stewart Information Services (NYSE:STC – Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.50 by ($0.17). The firm had revenue of $900.70 million for the quarter, compared to analyst estimates of $903.67 million. Stewart Information Services had a net margin of 3.58% and a return on equity of 9.42%. During the same period last year, the company earned $1.64 EPS. Equities analysts anticipate that Stewart Information Services Corporation will post 4.89 earnings per share for the current fiscal year.

Stewart Information Services Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were given a dividend of $0.55 per share. The ex-dividend date was Tuesday, September 15th. This represents a $2.20 annualized dividend and a dividend yield of 4.8%. This is a positive change from Stewart Information Services’s previous quarterly dividend of $0.5250. Stewart Information Services’s dividend payout ratio is presently 48.25%.

Insider Activity at Stewart Information Services

In related news, insider Brian Glaze sold 1,500 shares of Stewart Information Services stock in a transaction on Friday, August 21st. The stock was sold at an average price of $69.16, for a total transaction of $103,740.00. Following the completion of the sale, the insider directly owned 11,784 shares of the company’s stock, valued at $814,981.44. The trade was a 11.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 2.94% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Kings Path Partners LLC bought a new stake in shares of Stewart Information Services in the 3rd quarter valued at $52,000. Farther Finance Advisors LLC raised its holdings in shares of Stewart Information Services by 20.4% in the third quarter. Farther Finance Advisors LLC now owns 2,794 shares of the insurance provider’s stock valued at $139,000 after purchasing an additional 473 shares during the last quarter. Versant Capital Management Inc lifted its position in Stewart Information Services by 93.6% during the 3rd quarter. Versant Capital Management Inc now owns 1,152 shares of the insurance provider’s stock worth $57,000 after buying an additional 557 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its holdings in shares of Stewart Information Services by 34.0% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,351 shares of the insurance provider’s stock valued at $419,000 after acquiring an additional 1,612 shares in the last quarter. Finally, Engineers Gate Manager LP increased its position in shares of Stewart Information Services by 20.0% in the second quarter. Engineers Gate Manager LP now owns 5,146 shares of the insurance provider’s stock valued at $340,000 after acquiring an additional 858 shares during the last quarter. Institutional investors own 96.90% of the company’s stock.

Stewart Information Services Company Profile

(Get Free Report)

Stewart Information Services Corporation (NYSE: STC) is a global provider of title insurance and real estate transaction services. Through its Stewart Title operations, the company helps protect property owners, lenders and other participants from losses arising from defects in a property’s title.

The company offers title searches and examinations, title insurance policies, escrow and closing services, settlement services, and related solutions for residential and commercial real estate transactions.

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