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 report published on Monday.
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 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.”
A number of other equities research analysts have also recently commented on STT. Bank of America Corporation reissued a neutral rating and issued a $88.00 price objective on shares of State Street Corporation in a research note on Friday, May 26th. UBS AG raised shares of State Street Corporation from a neutral rating to a buy rating and increased their price objective for the company from $86.00 to $92.00 in a research note on Monday, June 5th. BidaskClub raised shares of State Street Corporation from a hold rating to a buy rating in a research note on Saturday, June 10th. Jefferies Group LLC reissued a hold rating and issued a $87.00 price objective on shares of State Street Corporation in a research note on Monday, June 19th. Finally, Royal Bank Of Canada reissued a hold rating and issued a $86.00 price objective on shares of State Street Corporation in a research note on Friday, June 23rd. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, five have issued a buy rating and two have given a strong buy rating to the stock. The company currently has an average rating of Hold and an average price target of $92.50.
State Street Corporation (NYSE:STT) opened at 95.95 on Monday. State Street Corporation has a 52-week low of $68.16 and a 52-week high of $96.39. The company’s 50-day moving average is $93.36 and its 200-day moving average is $86.39. The firm has a market capitalization of $35.88 billion, a price-to-earnings ratio of 17.72 and a beta of 1.31.
State Street Corporation (NYSE:STT) last issued its quarterly earnings data on Wednesday, July 26th. The asset manager reported $1.67 EPS for the quarter, beating the Zacks’ consensus estimate of $1.57 by $0.10. The firm had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.86 billion. State Street Corporation had a net margin of 19.97% and a return on equity of 12.49%. The firm’s revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.46 EPS. Equities analysts predict that State Street Corporation will post $6.15 earnings per share for the current year.
State Street Corporation announced that its board has initiated a stock buyback program on Wednesday, June 28th that authorizes the company to repurchase $1.40 billion in outstanding shares. This repurchase authorization authorizes the asset manager to repurchase up to 4.2% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board believes its shares are undervalued.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 16th. Investors of record on Monday, October 2nd will be given a $0.42 dividend. The ex-dividend date of this dividend is Friday, September 29th. This is a boost from State Street Corporation’s previous quarterly dividend of $0.38. This represents a $1.68 annualized dividend and a dividend yield of 1.75%. State Street Corporation’s dividend payout ratio (DPR) is currently 28.15%.
In related news, Director Amelia C. Fawcett sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, July 28th. The shares were sold at an average price of $93.38, for a total value of $466,900.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Andrew Erickson sold 353 shares of the firm’s stock in a transaction that occurred on Wednesday, August 16th. The stock was 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 directly owns 21,170 shares in the company, valued at $1,969,021.70. The disclosure for this sale can be found here. Insiders sold 8,814 shares of company stock worth $820,385 over the last three months. Corporate insiders own 0.71% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in STT. Parallel Advisors LLC boosted its position in shares of State Street Corporation by 18.0% in the second quarter. Parallel Advisors LLC now owns 1,129 shares of the asset manager’s stock worth $105,000 after acquiring an additional 172 shares during the last quarter. Penserra Capital Management LLC acquired a new stake in shares of State Street Corporation in the second quarter worth approximately $107,000. Bronfman E.L. Rothschild L.P. boosted its position in shares of State Street Corporation by 15.3% in the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,266 shares of the asset manager’s stock worth $114,000 after acquiring an additional 168 shares during the last quarter. NEXT Financial Group Inc boosted its position in shares of State Street Corporation by 5.5% in the second quarter. NEXT Financial Group Inc now owns 1,450 shares of the asset manager’s stock worth $130,000 after acquiring an additional 75 shares during the last quarter. Finally, Salem Investment Counselors Inc. boosted its position in shares of State Street Corporation by 2,677.8% in the first quarter. Salem Investment Counselors Inc. now owns 1,000 shares of the asset manager’s stock worth $131,000 after acquiring an additional 964 shares during the last quarter. 87.33% of the stock is currently owned by institutional investors and hedge funds.
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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