State Street (STT) Downgraded to Strong Sell at Zacks Investment Research

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State Street (NYSE:STT) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Monday.

According to Zacks, “Shares of State Street have significantly underperformed the industry over the past year. Yet, it has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Earnings estimates have been going down ahead of the company’s fourth quarter 2018 results. While the company's new business wins, rising interest rates, strong balance sheet and strategic acquisitions are likely to continue supporting its profitability, mounting expenses, despite cost control efforts, remains a major concern as it might hurt bottom-line growth to some extent. Also, uncertainty about the performance of capital markets, which is expected to impact its trading services revenues, makes us apprehensive.”

STT has been the subject of several other reports. Raymond James upgraded shares of State Street from a “market perform” rating to a “strong-buy” rating in a research note on Monday. Bank of America upgraded shares of State Street from a “neutral” rating to a “buy” rating and set a $66.51 price objective for the company in a research note on Friday. Evercore ISI upgraded shares of State Street from an “in-line” rating to an “outperform” rating and set a $64.99 price objective for the company in a research note on Tuesday, January 8th. ValuEngine upgraded shares of State Street from a “strong sell” rating to a “sell” rating in a research note on Wednesday, December 26th. Finally, TheStreet downgraded shares of State Street from a “b-” rating to a “c+” rating in a research note on Tuesday, December 18th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $92.03.

Shares of STT stock opened at $67.01 on Monday. State Street has a one year low of $57.87 and a one year high of $114.27. The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 0.50. The company has a market cap of $25.35 billion, a P/E ratio of 11.24, a P/E/G ratio of 0.96 and a beta of 1.35.

State Street (NYSE:STT) last issued its quarterly earnings results on Friday, October 19th. The asset manager reported $1.87 EPS for the quarter, missing the consensus estimate of $1.89 by ($0.02). State Street had a return on equity of 14.99% and a net margin of 19.90%. The company had revenue of $2.95 billion for the quarter, compared to analyst estimates of $3.02 billion. During the same period last year, the company posted $1.71 EPS. The business’s revenue for the quarter was up 3.7% on a year-over-year basis. Research analysts anticipate that State Street will post 7.31 EPS for the current year.

In related news, Director Saint-Aignan Patrick De purchased 500 shares of the business’s stock in a transaction that occurred on Tuesday, October 23rd. The shares were purchased at an average cost of $68.62 per share, with a total value of $34,310.00. Following the completion of the acquisition, the director now directly owns 25,138 shares of the company’s stock, valued at approximately $1,724,969.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Louis D. Maiuri purchased 740 shares of the business’s stock in a transaction that occurred on Wednesday, October 24th. The stock was bought at an average cost of $67.60 per share, for a total transaction of $50,024.00. Following the completion of the acquisition, the executive vice president now directly owns 45,314 shares of the company’s stock, valued at $3,063,226.40. The disclosure for this purchase can be found here. 0.40% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of STT. OppenheimerFunds Inc. raised its holdings in State Street by 0.5% in the second quarter. OppenheimerFunds Inc. now owns 210,111 shares of the asset manager’s stock valued at $19,559,000 after acquiring an additional 1,082 shares in the last quarter. Raymond James & Associates raised its holdings in State Street by 12.3% in the second quarter. Raymond James & Associates now owns 170,959 shares of the asset manager’s stock valued at $15,915,000 after acquiring an additional 18,735 shares in the last quarter. Voya Investment Management LLC raised its holdings in State Street by 4.9% in the second quarter. Voya Investment Management LLC now owns 241,396 shares of the asset manager’s stock valued at $22,472,000 after acquiring an additional 11,252 shares in the last quarter. Morgan Stanley raised its holdings in shares of State Street by 2.4% during the second quarter. Morgan Stanley now owns 1,135,265 shares of the asset manager’s stock worth $105,681,000 after purchasing an additional 26,096 shares during the period. Finally, Worldquant Millennium Quantitative Strategies LLC acquired a new stake in shares of State Street during the second quarter worth $1,558,000. 87.19% of the stock is currently owned by hedge funds and other institutional investors.

State Street Company Profile

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product and participant level accounting; daily pricing and administration; master trust and master custody; depotbank services; record-keeping; cash management; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.

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