State Street Corporation (STT) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of State Street Corporation (NYSE:STT) from a buy rating to a hold rating in a research report sent to investors on Thursday morning.
According to Zacks, “Shares of State Street have 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 and easing margin pressure 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.”
STT has been the topic of a number of other research reports. Keefe, Bruyette & Woods set a $93.00 price target on shares of State Street Corporation and gave the stock a hold rating in a report on Monday, August 28th. Citigroup Inc. reissued a neutral rating and issued a $102.00 price target (up previously from $88.00) on shares of State Street Corporation in a report on Monday, October 9th. Barclays PLC increased their price target on shares of State Street Corporation from $95.00 to $104.00 and gave the stock an overweight rating in a report on Thursday, July 27th. Jefferies Group LLC reissued a hold rating and issued a $100.00 price target on shares of State Street Corporation in a report on Friday, September 15th. Finally, Wells Fargo & Company started coverage on shares of State Street Corporation in a report on Wednesday, August 9th. They issued an outperform rating and a $115.00 price target on the stock. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, four have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus price target of $95.07.
Shares of State Street Corporation (NYSE STT) opened at 99.26 on Thursday. State Street Corporation has a 12 month low of $68.54 and a 12 month high of $99.99. The firm has a 50-day moving average of $95.21 and a 200-day moving average of $88.76. The firm has a market cap of $37.12 billion, a price-to-earnings ratio of 18.33 and a beta of 1.31.
State Street Corporation (NYSE:STT) last issued its quarterly earnings results on Wednesday, July 26th. The asset manager reported $1.67 EPS for the quarter, topping the Zacks’ consensus estimate of $1.57 by $0.10. The firm 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%. The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.46 EPS. On average, analysts anticipate that State Street Corporation will post $6.18 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Monday, October 2nd will be given a dividend of $0.42 per share. The ex-dividend date of this dividend 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 authorized a stock buyback plan on Wednesday, June 28th that permits the company to buyback $1.40 billion in shares. This buyback authorization permits the asset manager to buy 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 stock in a transaction on 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 sale, the insider now owns 21,170 shares of the company’s stock, valued at approximately $1,969,021.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Amelia C. Fawcett sold 5,000 shares of the stock in a transaction on 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 in the last three months. 0.71% of the stock is currently owned by corporate insiders.
Several large investors have recently bought and sold shares of the company. Eqis Capital Management Inc. purchased a new stake in shares of State Street Corporation in the 3rd quarter worth about $1,057,000. Curbstone Financial Management Corp lifted its position in shares of State Street Corporation by 92.0% in the 3rd quarter. Curbstone Financial Management Corp now owns 16,900 shares of the asset manager’s stock worth $1,615,000 after purchasing an additional 8,100 shares during the period. Perpetual Ltd purchased a new stake in shares of State Street Corporation in the 2nd quarter worth about $1,673,000. Toronto Dominion Bank lifted its position in shares of State Street Corporation by 23.4% in the 2nd quarter. Toronto Dominion Bank now owns 121,079 shares of the asset manager’s stock worth $10,863,000 after purchasing an additional 22,954 shares during the period. Finally, Beaton Management Co. Inc. purchased a new stake in shares of State Street Corporation in the 2nd quarter worth about $1,585,000. 87.41% of the stock is owned by hedge funds and other 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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