Stewart Information Services (NYSE:STC) Stock Price Down 6.6% After Analyst Downgrade

Stewart Information Services Corporation (NYSE:STC)’s share price dropped 6.6% during trading on Friday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $46.22 and last traded at $45.9850. Approximately 208,432 shares changed hands during trading, a decline of 16% from the average session volume of 246,935 shares. The stock had previously closed at $49.24.

A number of other equities analysts have also weighed in on STC. Benchmark started coverage on Stewart Information Services in a research note on Tuesday, July 21st. They issued a “buy” rating and a $87.00 target price on the stock. Citigroup reiterated a “market outperform” rating on shares of Stewart Information Services in a research report on Monday, October 12th. 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 report on Monday, October 12th. Wall Street Zen cut shares of Stewart Information Services from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, Keefe, Bruyette & Woods downgraded shares of Stewart Information Services from an “outperform” rating to a “market perform” rating and lowered their target price for the company from $77.00 to $71.00 in a research note on Monday, July 27th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Stewart Information Services presently has a consensus rating of “Hold” and an average target price of $80.25.

Insiders Place Their Bets

In other Stewart Information Services news, insider Brian Glaze sold 1,500 shares of Stewart Information Services stock in a transaction dated 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 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 SEC, which is available at this hyperlink. 2.94% of the stock is owned by insiders.

Key Headlines Impacting Stewart Information Services

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

• Positive Sentiment: Third-quarter revenue reached a record level, indicating continued business volume and providing some support for the long-term outlook. However, the revenue performance was not enough to offset weaker earnings. Stewart Information Services Q3 2026: Revenue Record Masks a Profit Slide
• Neutral Sentiment: Management discussed the quarter and the company’s outlook during its earnings call, giving investors additional context on operating conditions and future performance. Stewart Information Services Q3 2026 Earnings Call Transcript
• Negative Sentiment: Third-quarter adjusted earnings were $1.33 per share, below the $1.50 analyst consensus, while revenue of approximately $900.7 million also slightly missed expectations. Profit fell 32% year over year, despite the revenue record, reinforcing concerns about margins and earnings quality. Stewart Information Services Q3 Profit Falls 32%
• Negative Sentiment: DOWLING & PARTN reduced its 2026 EPS forecast to $4.89 from $5.26, matching the current consensus estimate. It also cut its 2027 forecast to $5.20 from $6.25 and its 2028 forecast to $6.05 from $7.05. The multi-year reductions suggest analysts expect a slower earnings recovery than previously projected. Stewart Information Services analyst estimates

Hedge Funds Weigh In On Stewart Information Services

A number of large investors have recently modified their holdings of STC. Caitlin John LLC purchased a new stake in Stewart Information Services in the second quarter worth approximately $28,000. Integrated Wealth Concepts LLC bought a new position in Stewart Information Services during the second quarter valued at approximately $42,000. Public Employees Retirement System of Ohio bought a new position in Stewart Information Services during the second quarter valued at approximately $67,000. Kings Path Partners LLC purchased a new position in shares of Stewart Information Services during the third quarter worth approximately $52,000. Finally, Versant Capital Management Inc raised its stake in shares of Stewart Information Services by 93.6% during the third quarter. Versant Capital Management Inc now owns 1,152 shares of the insurance provider’s stock worth $57,000 after acquiring an additional 557 shares in the last quarter. 96.90% of the stock is owned by hedge funds and other institutional investors.

Stewart Information Services Price Performance

The stock has a market capitalization of $1.34 billion, a PE ratio of 11.03 and a beta of 1.04. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.85 and a quick ratio of 1.98. The firm’s 50 day simple moving average is $60.69 and its 200 day simple moving average is $64.99.

Stewart Information Services (NYSE:STC) last announced its quarterly earnings data on Wednesday, October 21st. The insurance provider reported $1.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.17). Stewart Information Services had a net margin of 3.58% and a return on equity of 9.39%. The business had revenue of $900.70 million during the quarter, compared to analysts’ expectations of $903.67 million. During the same period last year, the company posted $1.64 EPS. As a group, equities analysts forecast that Stewart Information Services Corporation will post 4.89 EPS 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. Shareholders of record on Tuesday, September 15th were paid a $0.55 dividend. This is a boost from Stewart Information Services’s previous quarterly dividend of $0.5250. This represents a $2.20 annualized dividend and a yield of 5.0%. The ex-dividend date of this dividend was Tuesday, September 15th. Stewart Information Services’s payout ratio is presently 55.14%.

Stewart Information Services Company Profile

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.