State Street Corporation (STT) Downgraded to “Hold” at Zacks Investment Research
State Street Corporation (NYSE:STT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
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. Further, given a solid liquidity position, the company is expected to continue with its capital deployment activities. However, mounting expenses (owing to higher compensation and employee benefit costs) might hurt profitability in the near-term.”
A number of other research firms have also issued reports on STT. Buckingham Research reaffirmed a “buy” rating and set a $107.00 target price (up previously from $94.00) on shares of State Street Corporation in a report on Monday, July 10th. BidaskClub raised shares of State Street Corporation from a “hold” rating to a “buy” rating in a report on Saturday, June 10th. Bank of America Corporation reaffirmed a “neutral” rating and set a $88.00 target price on shares of State Street Corporation in a report on Friday, May 26th. Keefe, Bruyette & Woods set a $88.00 target price on shares of State Street Corporation and gave the stock a “hold” rating in a report on Saturday, July 1st. Finally, Jefferies Group LLC reaffirmed a “hold” rating and set a $87.00 target price on shares of State Street Corporation in a report on Monday, June 19th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, four have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. State Street Corporation presently has a consensus rating of “Hold” and an average target price of $90.12.
State Street Corporation (NYSE:STT) traded down 1.0120% during mid-day trading on Tuesday, hitting $91.9599. 981,245 shares of the stock were exchanged. The stock has a market capitalization of $34.39 billion, a PE ratio of 16.9793 and a beta of 1.30. State Street Corporation has a 52 week low of $68.16 and a 52 week high of $96.26. The company has a 50-day moving average of $92.74 and a 200-day moving average of $84.75.
State Street Corporation (NYSE:STT) last released its earnings results on Wednesday, July 26th. The asset manager reported $1.67 earnings per share (EPS) for the quarter, topping the Zacks’ 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 business had revenue of $2.81 billion during the quarter, compared to analyst estimates of $2.86 billion. During the same quarter in the prior year, the firm earned $1.46 earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year. On average, equities analysts predict that State Street Corporation will post $6.15 EPS for the current fiscal year.
State Street Corporation declared that its Board of Directors has authorized a stock buyback program on Wednesday, June 28th that authorizes the company to buyback $1.40 billion in shares. This buyback authorization authorizes the asset manager to reacquire up to 4.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.
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In other State Street Corporation news, Chairman Joseph L. Hooley sold 5,666 shares of the stock in a transaction dated Tuesday, June 13th. The shares were sold at an average price of $87.88, for a total transaction of $497,928.08. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Amelia C. Fawcett sold 5,000 shares of the stock in a transaction dated Friday, July 28th. The stock was 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. In the last ninety days, insiders have sold 17,136 shares of company stock valued at $1,551,722. 0.71% of the stock is currently owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. raised its position in shares of State Street Corporation by 2,256.7% in the first 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 period. Longview Partners Guernsey LTD bought a new position in shares of State Street Corporation during the first quarter valued at $340,683,000. FMR LLC raised its position in shares of State Street Corporation by 10.8% in the second 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 period. Boston Partners raised its position in shares of State Street Corporation by 48.7% in the first quarter. Boston Partners now owns 4,845,157 shares of the asset manager’s stock valued at $385,723,000 after buying an additional 1,587,871 shares during the period. Finally, Vanguard Group Inc. raised its position in shares of State Street Corporation by 5.3% in the first quarter. Vanguard Group Inc. now owns 23,574,037 shares of the asset manager’s stock valued at $1,876,730,000 after buying an additional 1,180,527 shares during the period. 87.34% of the stock is 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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