Zacks Investment Research upgraded shares of State Street Corporation (NYSE:STT) from a hold rating to a buy rating in a research report sent to investors on Wednesday morning. Zacks Investment Research currently has $111.00 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. Though escalating expenses might hurt bottom-line growth, new business wins, synergies from GE Asset Management deal and easing margin pressure are likely to aid top-line growth. Moreover, given a solid capital position, the company is expected to continue with its capital deployment activities, thereby enhancing shareholder value.”
Several other research analysts have also recently commented on the company. Keefe, Bruyette & Woods set a $93.00 price target on State Street Corporation and gave the stock a hold rating in a research note on Monday, August 28th. Goldman Sachs Group, Inc. (The) upgraded State Street Corporation from a buy rating to a conviction-buy rating and boosted their price target for the stock from $92.00 to $100.00 in a research note on Wednesday, June 28th. BidaskClub upgraded State Street Corporation from a buy rating to a strong-buy rating in a research note on Thursday, June 22nd. Royal Bank Of Canada reiterated a hold rating and issued a $86.00 price target on shares of State Street Corporation in a research note on Friday, June 23rd. Finally, Buckingham Research reiterated a buy rating and issued a $107.00 price target (up previously from $94.00) on shares of State Street Corporation in a research note on Monday, July 10th. One research analyst has rated the stock with a sell rating, ten have given a hold rating, four have assigned a buy rating and two have given a strong buy rating to the stock. The company has an average rating of Hold and a consensus price target of $95.07.
Shares of State Street Corporation (NYSE STT) traded down 0.48% during midday trading on Wednesday, hitting $98.81. The stock had a trading volume of 834,008 shares. State Street Corporation has a one year low of $68.16 and a one year high of $99.99. The stock has a 50 day moving average of $94.86 and a 200-day moving average of $88.40. The company has a market cap of $36.95 billion, a P/E ratio of 18.24 and a beta of 1.31.
State Street Corporation (NYSE:STT) last released its quarterly earnings results on Wednesday, July 26th. The asset manager reported $1.67 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.57 by $0.10. State Street Corporation had a return on equity of 12.49% and a net margin of 19.97%. The business had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.86 billion. During the same quarter in the previous year, the firm posted $1.46 earnings per share. The company’s revenue was up 9.2% compared to the same quarter last year. Analysts forecast that State Street Corporation will post $6.18 EPS for the current fiscal year.
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 paid a dividend of $0.42 per share. The ex-dividend date is Friday, September 29th. This represents a $1.68 annualized dividend and a yield of 1.69%. This is a boost from State Street Corporation’s previous quarterly dividend of $0.38. State Street Corporation’s dividend payout ratio is presently 31.11%.
State Street Corporation announced that its Board of Directors has initiated a stock buyback plan on Wednesday, June 28th that permits the company to buyback $1.40 billion in outstanding shares. This buyback authorization permits the asset manager to buy up to 4.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.
In other news, Director Amelia C. Fawcett sold 5,000 shares of the stock in a transaction that occurred on Friday, July 28th. The stock was sold at an average price of $93.38, for a total transaction of $466,900.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Hannah M. Grove sold 3,200 shares of the stock in a transaction that occurred on Thursday, August 10th. The stock was sold at an average price of $92.55, for a total value of $296,160.00. Following the sale, the insider now owns 39,896 shares in the company, valued at $3,692,374.80. The disclosure for this sale can be found here. Insiders have sold a total of 8,814 shares of company stock worth $820,385 over the last quarter. Insiders own 0.71% of the company’s stock.
Institutional investors have recently made changes to their positions in the company. Salem Investment Counselors Inc. raised its position in shares of State Street Corporation by 2,677.8% during the 1st quarter. Salem Investment Counselors Inc. now owns 1,000 shares of the asset manager’s stock worth $131,000 after purchasing an additional 964 shares during the period. Parallel Advisors LLC raised its position in shares of State Street Corporation by 18.0% during the 2nd quarter. Parallel Advisors LLC now owns 1,129 shares of the asset manager’s stock worth $105,000 after purchasing an additional 172 shares during the period. Penserra Capital Management LLC acquired a new stake in shares of State Street Corporation during the 2nd quarter worth approximately $107,000. Bronfman E.L. Rothschild L.P. raised its position in shares of State Street Corporation by 15.3% during the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 1,266 shares of the asset manager’s stock worth $114,000 after purchasing an additional 168 shares during the period. Finally, NEXT Financial Group Inc raised its position in shares of State Street Corporation by 5.5% during the 2nd quarter. NEXT Financial Group Inc now owns 1,450 shares of the asset manager’s stock worth $130,000 after purchasing an additional 75 shares during the period. Institutional investors and hedge funds own 87.42% of the company’s stock.
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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