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Investors Title Company (ITIC)
NASDAQ:ITIC
US Market

Investors Title Company (ITIC) AI Stock Analysis

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Investors Title Company

(NASDAQ:ITIC)

Rating:66Neutral
Price Target:
$229.00
▲(6.27%Upside)
Investors Title Company exhibits strong financial stability, with a robust balance sheet and no debt, which significantly contributes to its score. However, the technical indicators suggest bearish momentum, and revenue growth challenges weigh down the overall score. The valuation is reasonable, which partially offsets the technical weaknesses.

Investors Title Company (ITIC) vs. SPDR S&P 500 ETF (SPY)

Investors Title Company Business Overview & Revenue Model

Company DescriptionInvestors Title Company, through its subsidiaries, engages in the issuance of residential and commercial title insurance for residential, institutional, commercial, and industrial properties. The company underwrites land title insurance for owners and mortgagees as a primary insurer; and assumes the reinsurance of title insurance risks from other title insurance companies. It also provides services in connection with tax-deferred exchanges of like-kind property; acts as a qualified intermediary in tax-deferred exchanges of property; coordinates the exchange aspects of the real estate transaction, such as drafting standard exchange documents, holding the exchange funds between the sale of the old property and the purchase of the new property, and accepting the formal identification of the replacement property. In addition, it serves as an exchange accommodation titleholder for accomplishing reverse exchanges when the taxpayers decide to acquire replacement property before selling the relinquished property. Further, the company offers investment management and trust services to individuals, companies, banks, and trusts; and consulting and management services to clients to start and operate a title insurance agency. It issues title insurance policies primarily through approved attorneys from underwriting offices, as well as through independent issuing agents in 24 states and the District of Columbia, primarily in the eastern half of the United States. The company was founded in 1972 and is headquartered in Chapel Hill, North Carolina.
How the Company Makes MoneyInvestors Title Company makes money primarily through the sale of title insurance policies. These policies generate revenue by charging premiums to property buyers and lenders, which serve as protection against financial loss from title defects or disputes. The company also earns income from escrow and closing services by charging fees for facilitating the finalization of real estate transactions. Additionally, ITIC provides tax-deferred 1031 exchange services, which allow real estate investors to defer capital gains taxes on property sales. Revenue is further supported by strategic partnerships with real estate agents, lenders, and developers, who refer clients to ITIC for their title insurance needs. Overall, the company's earnings are driven by the volume of real estate transactions and the demand for title-related services.

Investors Title Company Financial Statement Overview

Summary
The company demonstrates strong financial stability with zero debt and a high equity ratio, reflecting prudent financial management. However, declining revenue and net income trends since 2021 pose challenges to growth. The cash flow is volatile but shows recovery in 2024.
Income Statement
65
Positive
The company's income statement shows fluctuating revenue with a notable decline in 2023 and 2024 compared to previous years. Despite this, the company maintains strong profitability with a high gross profit margin due to controlled costs. However, net income peaked in 2021 and has since decreased, indicating potential challenges in sustaining growth.
Balance Sheet
78
Positive
The balance sheet is robust, with zero debt in 2024, indicating prudent financial management and low leverage. The equity ratio is high, reflecting strong capitalization. The consistent growth in stockholders' equity is a positive sign of financial health and stability.
Cash Flow
70
Positive
The cash flow statement reveals some volatility, with a significant drop in free cash flow in 2023. Nonetheless, the company has returned to positive free cash flow in 2024. Operating cash flow remains positive, supporting the company's ability to fund operations and investments without relying on external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue261.40M258.30M224.75M283.39M329.50M236.41M
Gross Profit236.22M146.43M224.75M283.39M329.50M236.41M
EBITDA42.74M43.96M30.35M33.69M87.37M51.92M
Net Income29.72M31.07M21.69M23.90M67.02M39.42M
Balance Sheet
Total Assets333.78M333.57M330.56M339.76M331.49M282.93M
Cash, Cash Equivalents and Short-Term Investments145.93M137.63M198.10M192.95M162.89M146.61M
Total Debt0.006.36M6.45M6.84M5.33M3.67M
Total Liabilities79.37M81.80M79.01M98.75M102.40M82.50M
Stockholders Equity254.41M251.77M251.55M241.01M229.09M200.42M
Cash Flow
Free Cash Flow23.14M22.42M-1.76M30.52M45.40M30.89M
Operating Cash Flow28.33M29.84M7.43M36.20M51.93M34.09M
Investing Cash Flow7.57M1.75M-6.70M-28.75M9.07M-14.60M
Financing Cash Flow-29.91M-30.96M-12.01M-9.31M-37.55M-31.72M

Investors Title Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price215.49
Price Trends
50DMA
222.55
Negative
100DMA
227.44
Negative
200DMA
230.92
Negative
Market Momentum
MACD
-2.55
Negative
RSI
52.67
Neutral
STOCH
81.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITIC, the sentiment is Neutral. The current price of 215.49 is above the 20-day moving average (MA) of 203.90, below the 50-day MA of 222.55, and below the 200-day MA of 230.92, indicating a neutral trend. The MACD of -2.55 indicates Negative momentum. The RSI at 52.67 is Neutral, neither overbought nor oversold. The STOCH value of 81.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ITIC.

Investors Title Company Risk Analysis

Investors Title Company disclosed 24 risk factors in its most recent earnings report. Investors Title Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Investors Title Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MTMTG
79
Outperform
$6.70B9.3815.12%1.84%4.64%15.36%
RDRDN
78
Outperform
$4.91B9.3013.22%2.79%2.95%4.08%
FAFAF
69
Neutral
$6.44B41.283.23%3.45%0.96%-27.04%
67
Neutral
¥713.20B10.867.42%3.37%7.74%16.12%
66
Neutral
$406.47M13.7211.69%0.85%15.22%19.19%
FNFNF
64
Neutral
$15.73B14.1514.72%3.49%4.40%33.32%
MBMBI
28
Underperform
$220.63M26.69%583.33%6.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ITIC
Investors Title Company
215.93
45.53
26.72%
FNF
Fidelity National Financial
57.31
10.78
23.17%
FAF
First American Financial
62.72
12.00
23.66%
MBI
MBIA
4.30
-1.16
-21.25%
MTG
MGIC Investment
27.91
6.92
32.97%
RDN
Radian Group
36.32
6.13
20.30%

Investors Title Company Corporate Events

Executive/Board ChangesShareholder Meetings
Investors Title Company Holds Annual Shareholder Meeting
Neutral
May 22, 2025

On May 21, 2025, Investors Title Company held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders elected directors for three-year terms, approved executive compensation, decided on a triennial advisory vote for executive pay, and ratified Forvis Mazars, LLP as the independent auditor for 2025. These decisions reflect the company’s ongoing governance practices and commitment to aligning executive compensation with shareholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025