Wealth Firm Trims Stewart Stake by $3 Million amid Strong Quarter but Keeps a Foot in Real Estate

On Thursday, Texas-based Outlook Wealth Advisors disclosed selling 49,831 shares of Stewart Information Services Corporation (NYSE:STC) for an estimated $3.4 million during the third quarter.

What Happened

According to a filing with the U.S. Securities and Exchange Commission released on Thursday, Outlook Wealth Advisors reduced its holdings in Stewart Information Services Corporation (NYSE:STC) by 49,831 shares in the third quarter. The transaction was estimated at $3.4 million based on the average share price for the period. Following the sale, the fund reported holding 49,836 shares valued at $3.7 million as of September 30.

What Else to Know

Top holdings after the filing:

• NYSEMKT:IVV: $21.5 million (5.4% of AUM)
• NYSEMKT:BSEP: $19.6 million (4.9% of AUM)
• NASDAQ:QQQ: $16.2 million (4% of AUM)
• NYSEMKT:VTV: $14.5 million (3.6% of AUM)
• NYSEMKT:HYDB: $13.3 million (3.3% of AUM)

As of Friday, shares of Stewart Information Services Corporation were priced at $68.27, down about 1% over the past year compared to a nearly 20% return for the S&P 500.

Company Overview

Company Snapshot

Stewart Information Services Corporation is a leading provider of title insurance and real estate transaction services, operating through a broad network of direct offices and independent agencies. The company's diversified offerings support both residential and commercial real estate transactions, leveraging technology and specialized services to streamline complex processes. Stewart's established market presence and comprehensive suite of solutions position it as a key partner for participants across the real estate and mortgage value chain.

Foolish Take

Outlook Wealth Advisors’ third-quarter sale of 49,831 shares of Stewart Information Services Corporation might reflect portfolio rebalancing rather than a bearish signal—especially following Stewart’s strong earnings beat last week. The Texas-based wealth advisory, known for its conservative, income-focused approach, still holds nearly $3.7 million in the title insurer, representing roughly 0.9% of reported assets.

Stewart’s third-quarter report on October 22 showed 19% year-over-year revenue growth to $797 million and net income up 47% to $44.3 million, with EPS rising to $1.55 from $1.07. The company continues to benefit from improving commercial transaction volumes and disciplined cost control—driving an adjusted pretax margin of 8.1%.

For long-term investors, the sale highlights how balanced wealth managers might trim cyclical holdings even amid improving fundamentals. Stewart’s stable cash flow, growing margins, and modest valuation suggest room for further upside if the housing recovery strengthens in 2026. But in a mixed real estate market, advisors like Outlook may prefer to redeploy capital toward diversified income assets—consistent with their broader wealth preservation strategy.

Glossary

13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.

AUM (assets under management): The total market value of investments managed on behalf of clients by a financial institution or fund.

Title insurance: Insurance protecting real estate buyers and lenders against losses from defects in property titles or ownership disputes.

Transaction fees: Charges collected for facilitating or processing financial or real estate transactions.

Appraisal management: Oversight of the property valuation process, often coordinating independent appraisers for real estate transactions.

Online notarization: The process of notarizing documents electronically via secure online platforms, often using audio-video technology.

Ancillary services: Additional services provided alongside core offerings, such as support or value-added features related to the main business.

Direct offices: Company-owned locations that provide services directly to customers, as opposed to franchised or independent locations.

Independent agencies: Separate businesses authorized to offer a company's products or services, operating independently from the parent company.

Value chain: The full range of activities and participants involved in delivering a product or service to the end customer.

Dividend yield: Annual dividend income expressed as a percentage of the current share price.

TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Index Funds - Vanguard Value ETF. The Motley Fool has a disclosure policy.