Zacks Investment Research upgraded shares of State Street Corporation (NYSE:STT) from a hold rating to a buy rating in a research note published on Tuesday. Zacks Investment Research currently has $106.00 price objective on the asset manager’s stock.
According to Zacks, “Shares of State Street have significantly outperformed the industry, over the past six months. This performance was supported by the company’s impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in all 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. However, mounting expenses mainly owing to higher compensation and employee benefit costs are expected to hurt its profitability in the near-term.”
Several other equities analysts have also weighed in on STT. UBS AG upgraded shares of State Street Corporation from a neutral rating to a buy rating and boosted their target price for the company from $86.00 to $92.00 in a report on Monday, June 5th. Keefe, Bruyette & Woods set a $88.00 target price on shares of State Street Corporation and gave the company a hold rating in a report on Saturday, July 1st. Jefferies Group LLC reiterated a hold rating and issued a $100.00 target price on shares of State Street Corporation in a report on Friday, September 15th. Wells Fargo & Company assumed coverage on shares of State Street Corporation in a report on Wednesday, August 9th. They issued an outperform rating and a $115.00 target price on the stock. Finally, BidaskClub upgraded shares of State Street Corporation from a hold rating to a buy rating in a report on Saturday, June 10th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, five have assigned a buy rating and two have given a strong buy rating to the stock. State Street Corporation currently has an average rating of Hold and an average target price of $92.50.
Shares of State Street Corporation (NYSE:STT) traded down 0.41% during mid-day trading on Tuesday, reaching $95.56. 1,599,722 shares of the company’s stock traded hands. State Street Corporation has a 12-month low of $68.16 and a 12-month high of $96.26. The stock has a market capitalization of $35.74 billion, a PE ratio of 17.64 and a beta of 1.31. The company’s 50-day moving average price is $93.36 and its 200-day moving average price is $86.39.
State Street Corporation (NYSE:STT) last posted its earnings results on Wednesday, July 26th. The asset manager reported $1.67 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.10. The company had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.86 billion. State Street Corporation had a net margin of 19.97% and a return on equity of 12.49%. State Street Corporation’s revenue was up 9.2% on a year-over-year basis. During the same period in the previous year, the business posted $1.46 EPS. Analysts anticipate that State Street Corporation will post $6.16 earnings per share for the current year.
State Street Corporation announced that its Board of Directors has approved a share buyback plan on Wednesday, June 28th that permits the company to repurchase $1.40 billion in outstanding shares. This repurchase authorization permits the asset manager to repurchase up to 4.2% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Monday, October 2nd will be given a $0.42 dividend. The ex-dividend date is Friday, September 29th. This is an increase from State Street Corporation’s previous quarterly dividend of $0.38. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.76%. State Street Corporation’s dividend payout ratio is currently 28.15%.
In other State Street Corporation news, insider Andrew Erickson sold 353 shares of the stock in a transaction that occurred on Wednesday, August 16th. The shares were sold at an average price of $93.01, for a total value of $32,832.53. Following the sale, the insider now directly owns 21,170 shares of the company’s stock, valued at approximately $1,969,021.70. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Hannah M. Grove sold 3,200 shares of the stock in a transaction that occurred on Thursday, August 10th. The shares were sold at an average price of $92.55, for a total transaction of $296,160.00. Following the completion of the sale, the insider now directly owns 39,896 shares in the company, valued at $3,692,374.80. The disclosure for this sale can be found here. Over the last three months, insiders sold 8,814 shares of company stock worth $820,385. Insiders own 0.71% of the company’s stock.
Large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in shares of State Street Corporation by 1.9% in the 2nd quarter. Vanguard Group Inc. now owns 24,022,695 shares of the asset manager’s stock valued at $2,155,556,000 after buying an additional 448,658 shares during the last quarter. BlackRock Inc. grew its position in shares of State Street Corporation by 2,256.7% in the 1st quarter. BlackRock Inc. now owns 20,603,959 shares of the asset manager’s stock valued at $1,640,284,000 after buying an additional 19,729,678 shares during the last quarter. FMR LLC grew its position in shares of State Street Corporation by 10.8% in the 2nd quarter. FMR LLC now owns 19,988,755 shares of the asset manager’s stock valued at $1,793,591,000 after buying an additional 1,940,536 shares during the last quarter. Longview Partners Guernsey LTD grew its position in shares of State Street Corporation by 76.9% in the 2nd quarter. Longview Partners Guernsey LTD now owns 7,569,482 shares of the asset manager’s stock valued at $679,210,000 after buying an additional 3,290,082 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC grew its position in shares of State Street Corporation by 9.0% in the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 5,262,504 shares of the asset manager’s stock valued at $418,948,000 after buying an additional 432,832 shares during the last quarter. 87.33% of the stock is currently owned by institutional investors.
About State Street Corporation
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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