Stewart Information Services Shares Defy Strong Earnings with Sharp Decline

In a surprising market reaction, shares of Stewart Information Services Corporation experienced a significant downturn yesterday, falling approximately 7% despite the company reporting exceptional third-quarter 2025 results that surpassed analyst expectations across key metrics.

The title insurance provider delivered robust financial figures for Q3 2025, demonstrating substantial year-over-year growth:

• Revenue reached $796.9 million, representing a 19% increase compared to the same period last year
• Adjusted earnings per share came in at $1.64
• Both figures substantially exceeded market expectations

Demonstrating continued confidence in the company's financial health, management raised the dividend payment for the fifth consecutive time, increasing it from $2.00 to $2.10 per share.

Market Reaction Contradicts Fundamentals

The negative investor response appears counterintuitive given the strong quarterly performance. Market participants seemed more focused on long-term concerns than the immediate positive results. The challenging residential real estate market environment overshadowed the quarterly achievements, with fundamental worries taking precedence over temporary gains.

Should investors sell immediately? Or is it worth buying Stewart Information Services?

Operational efficiency showed notable improvement, with personnel expenses declining to 27.2% of operating revenue. The title segment's adjusted pre-tax margin strengthened to 9%. However, these operational enhancements failed to convince market participants.

Technical Positioning Weakens

From a technical analysis perspective, the stock now shows signs of weakness. Following yesterday's decline to approximately $70, shares trade below the 50-day moving average of $72.20. The 200-day moving average at $66.83 now becomes a potential support level to monitor.

Whether Stewart can reverse this downward trend remains uncertain. While management maintains confidence in their growth strategy, market sentiment currently reflects different concerns that may continue to influence share performance in the near term.