Zacks Investment Research upgraded shares of State Street Corporation (NYSE:STT) from a hold rating to a buy rating in a report released on Wednesday, August 30th. The firm currently has $103.00 price target on the asset manager’s stock.
According to Zacks, “Shares of State Street have significantly outperformed the industry, over the last six months. This performance was supported by the company’s impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of the trailing four quarters. Further, the company remains on track to improve efficiency through its multi-year restructuring plan. New business wins, synergies from GE Asset Management deal, easing margin pressure and potential lesser regulations are likely to aid top-line growth. Though mounting expenses (owing to higher compensation and employee benefit costs) might hurt profitability in the near-term, given a solid liquidity position, the company is expected to continue with its capital deployment activities.”
Several other research firms also recently weighed in on STT. Wells Fargo & Company assumed coverage on shares of State Street Corporation in a research report on Wednesday, August 9th. They issued an outperform rating and a $115.00 target price for the company. Barclays PLC boosted their target price on shares of State Street Corporation from $95.00 to $104.00 and gave the stock an overweight rating in a research report on Thursday, July 27th. Keefe, Bruyette & Woods set a $93.00 target price on shares of State Street Corporation and gave the stock a hold rating in a research report on Monday, August 28th. Buckingham Research reissued a buy rating and issued a $107.00 target price (up previously from $94.00) on shares of State Street Corporation in a research report on Monday, July 10th. Finally, BidaskClub raised shares of State Street Corporation from a buy rating to a strong-buy rating in a research report on Thursday, June 22nd. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, five have given a buy rating and two have issued a strong buy rating to the stock. State Street Corporation presently has a consensus rating of Hold and a consensus target price of $91.50.
State Street Corporation (NYSE:STT) traded down 0.06% during trading on Wednesday, reaching $94.04. 5,229,299 shares of the company’s stock traded hands. The stock has a market capitalization of $35.17 billion, a P/E ratio of 17.36 and a beta of 1.31. State Street Corporation has a 1-year low of $68.16 and a 1-year high of $96.26. The stock has a 50-day moving average price of $93.24 and a 200 day moving average price of $86.10.
State Street Corporation (NYSE:STT) last released its quarterly earnings results on Wednesday, July 26th. The asset manager reported $1.67 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.57 by $0.10. State Street Corporation had a net margin of 19.97% and a return on equity of 12.49%. The firm had revenue of $2.81 billion for the quarter, compared to the consensus estimate of $2.86 billion. During the same quarter in the previous year, the firm posted $1.46 EPS. The firm’s quarterly revenue was up 9.2% on a year-over-year basis. Equities research analysts expect that State Street Corporation will post $6.15 earnings per share for the current year.
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The company also recently announced a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Monday, October 2nd will be paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.79%. This is a positive change from State Street Corporation’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Friday, September 29th. State Street Corporation’s payout ratio is presently 28.15%.
State Street Corporation declared that its board has initiated a share repurchase plan on Wednesday, June 28th that permits the company to buyback $1.40 billion in shares. This buyback authorization permits the asset manager to purchase up to 4.2% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.
In other State Street Corporation news, insider Andrew Erickson sold 353 shares of the business’s stock in a transaction dated Wednesday, August 16th. The shares were sold at an average price of $93.01, for a total transaction of $32,832.53. Following the completion of the transaction, the insider now directly owns 21,170 shares of the company’s stock, valued at approximately $1,969,021.70. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Amelia C. Fawcett sold 5,000 shares of the business’s stock in a transaction dated Friday, July 28th. The shares were sold at an average price of $93.38, for a total transaction of $466,900.00. The disclosure for this sale can be found here. Insiders have sold a total of 8,814 shares of company stock valued at $820,385 over the last three months. 0.71% of the stock is currently owned by company insiders.
Several large investors have recently modified their holdings of STT. State of Alaska Department of Revenue acquired a new stake in shares of State Street Corporation in the 1st quarter worth approximately $123,000. First Manhattan Co. lifted its stake in shares of State Street Corporation by 1.1% in the 1st quarter. First Manhattan Co. now owns 11,129 shares of the asset manager’s stock worth $774,000 after acquiring an additional 125 shares during the period. IFP Advisors Inc lifted its stake in shares of State Street Corporation by 40.0% in the 1st quarter. IFP Advisors Inc now owns 2,373 shares of the asset manager’s stock worth $189,000 after acquiring an additional 678 shares during the period. Breton Hill Capital Ltd. lifted its stake in shares of State Street Corporation by 2.3% in the 1st quarter. Breton Hill Capital Ltd. now owns 13,594 shares of the asset manager’s stock worth $1,082,000 after acquiring an additional 309 shares during the period. Finally, Welch & Forbes LLC lifted its stake in shares of State Street Corporation by 2.6% in the 1st quarter. Welch & Forbes LLC now owns 310,426 shares of the asset manager’s stock worth $24,713,000 after acquiring an additional 7,763 shares during the period. 87.36% of the stock is owned by institutional investors.
State Street Corporation Company Profile
State Street Corporation is a financial holding company. The Company operates through two lines of business: Investment Servicing and Investment Management. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors across the world.
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