State Street Corporation (STT) Upgraded by Zacks Investment Research to Buy
Zacks Investment Research upgraded shares of State Street Corporation (NYSE:STT) from a hold rating to a buy rating in a research note issued to investors on Tuesday. The brokerage currently has $106.00 price target 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.”
A number of other analysts have also issued reports on the company. Jefferies Group LLC reiterated a hold rating and set a $100.00 price objective on shares of State Street Corporation in a research note on Friday, September 15th. Keefe, Bruyette & Woods set a $93.00 price objective on State Street Corporation and gave the company a hold rating in a research note on Monday, August 28th. Wells Fargo & Company started coverage on State Street Corporation in a research note on Wednesday, August 9th. They set an outperform rating and a $115.00 price objective on the stock. Barclays PLC boosted their target price on State Street Corporation from $95.00 to $104.00 and gave the stock an overweight rating in a research report on Thursday, July 27th. Finally, Buckingham Research restated a buy rating and set a $107.00 target price (up from $94.00) on shares of State Street Corporation in a research report on Monday, July 10th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, five have assigned a buy rating and two have given a strong buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus price target of $92.50.
Shares of State Street Corporation (STT) opened at 95.68 on Tuesday. The firm has a market capitalization of $35.78 billion, a price-to-earnings ratio of 17.67 and a beta of 1.31. The stock’s 50 day moving average price is $93.36 and its 200 day moving average price is $86.39. State Street Corporation has a 12-month low of $68.16 and a 12-month high of $96.26.
State Street Corporation (NYSE:STT) last released its quarterly earnings data on Wednesday, July 26th. The asset manager reported $1.67 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.86 billion. During the same period in the previous year, the company posted $1.46 EPS. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. Equities research analysts expect that State Street Corporation will post $6.15 earnings per share for the current year.
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State Street Corporation declared that its board has initiated a share repurchase program on Wednesday, June 28th that permits the company to repurchase $1.40 billion in shares. This repurchase authorization permits the asset manager to repurchase up to 4.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 16th. Stockholders of record on Monday, October 2nd will be issued a $0.42 dividend. This is a boost 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%. The ex-dividend date of this dividend is Friday, September 29th. State Street Corporation’s dividend payout ratio is presently 28.15%.
In other news, insider Andrew Erickson sold 353 shares of the company’s stock in a transaction dated Wednesday, August 16th. The stock was sold at an average price of $93.01, for a total value of $32,832.53. Following the completion of the transaction, the insider now directly owns 21,170 shares in the company, valued at approximately $1,969,021.70. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Hannah M. Grove sold 3,200 shares of the company’s stock in a transaction dated Thursday, August 10th. The stock was sold at an average price of $92.55, for a total value of $296,160.00. Following the completion of the transaction, the insider now owns 39,896 shares of the company’s stock, valued at $3,692,374.80. The disclosure for this sale can be found here. Insiders sold a total of 8,814 shares of company stock valued at $820,385 over the last quarter. Company insiders own 0.71% of the company’s stock.
Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings 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 worth $2,155,556,000 after purchasing an additional 448,658 shares in the last quarter. BlackRock Inc. boosted its holdings in State Street Corporation by 2,256.7% during the 1st quarter. BlackRock Inc. now owns 20,603,959 shares of the asset manager’s stock valued at $1,640,284,000 after acquiring an additional 19,729,678 shares during the period. FMR LLC boosted its holdings in State Street Corporation by 10.8% during the 2nd quarter. FMR LLC now owns 19,988,755 shares of the asset manager’s stock valued at $1,793,591,000 after acquiring an additional 1,940,536 shares during the period. Longview Partners Guernsey LTD boosted its holdings in State Street Corporation by 76.9% during 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 acquiring an additional 3,290,082 shares during the period. Finally, Hotchkis & Wiley Capital Management LLC boosted its holdings in State Street Corporation by 9.0% during 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 acquiring an additional 432,832 shares during the period. Hedge funds and other institutional investors own 87.33% of the company’s stock.
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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