Truist Financial Has Lowered Expectations for State Street (NYSE:STT) Stock Price

State Street (NYSE:STT) had its price target reduced by equities research analysts at Truist Financial from $190.00 to $171.00 in a research note issued on Thursday, Benzinga reports. The brokerage currently has a “hold” rating on the asset manager’s stock. Truist Financial’s price target indicates a potential upside of 2.58% from the company’s previous close.

A number of other equities analysts have also recently commented on STT. Bank of America lifted their target price on shares of State Street from $160.00 to $190.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 7th. Zacks Research cut State Street from a “strong-buy” rating to a “hold” rating in a research note on Friday, September 18th. UBS Group set a $176.00 target price on State Street in a report on Friday, June 26th. Weiss Ratings lowered State Street from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Tuesday, October 6th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of State Street from $220.00 to $230.00 and gave the company an “outperform” rating in a report on Thursday. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $191.91.

State Street Price Performance

Shares of STT stock traded down $0.18 during trading on Thursday, hitting $166.71. The company had a trading volume of 1,096,675 shares, compared to its average volume of 2,116,621. The stock’s 50-day moving average is $184.93 and its two-hundred day moving average is $169.28. The stock has a market capitalization of $45.79 billion, a price-to-earnings ratio of 14.70, a price-to-earnings-growth ratio of 0.83 and a beta of 1.41. State Street has a 52 week low of $104.64 and a 52 week high of $195.93. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04.

State Street (NYSE:STT) last posted its quarterly earnings data on Wednesday, October 14th. The asset manager reported $3.69 earnings per share for the quarter, beating the consensus estimate of $3.68 by $0.01. State Street had a net margin of 15.02% and a return on equity of 15.26%. The firm had revenue of $4 billion for the quarter, compared to analysts’ expectations of $4.03 billion. During the same quarter last year, the company posted $2.78 EPS. The business’s quarterly revenue was up 12.9% on a year-over-year basis. As a group, analysts predict that State Street will post 13.80 EPS for the current fiscal year.

Insider Transactions at State Street

In related news, CEO Ronald O’Hanley sold 14,553 shares of the business’s stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the sale, the chief executive officer owned 240,959 shares of the company’s stock, valued at $44,377,419.03. The trade was a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of the business’s stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $184.52, for a total value of $1,800,546.16. Following the completion of the sale, the executive vice president directly owned 49,794 shares in the company, valued at approximately $9,187,988.88. This represents a 16.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.27% of the company’s stock.

Institutional Trading of State Street

Several institutional investors have recently added to or reduced their stakes in STT. BlackRock Inc. purchased a new stake in shares of State Street during the second quarter valued at $4,139,389,000. State Street Corp lifted its position in State Street by 1.2% during the second quarter. State Street Corp now owns 13,538,311 shares of the asset manager’s stock valued at $2,296,098,000 after purchasing an additional 163,362 shares during the period. Regents of The University of California boosted its holdings in State Street by 15.6% in the first quarter. Regents of The University of California now owns 10,065,118 shares of the asset manager’s stock worth $1,273,841,000 after purchasing an additional 1,358,923 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in State Street by 4.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,962,274 shares of the asset manager’s stock worth $502,402,000 after purchasing an additional 137,798 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in State Street by 1.7% in the first quarter. Dimensional Fund Advisors LP now owns 3,101,952 shares of the asset manager’s stock worth $392,539,000 after purchasing an additional 51,754 shares during the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: Keefe, Bruyette & Woods raised its price target for State Street (STT) from $220 to $230 and upgraded the stock to “outperform,” implying substantial upside from recent levels. This provides a bullish counterpoint to the post-earnings selloff. Benzinga analyst action
• Positive Sentiment: Third-quarter adjusted earnings reached $3.69 per share, exceeding consensus estimates of approximately $3.65 to $3.68 and rising from $2.78 a year earlier. Net income increased 27% year over year, while fee revenue and net interest income also grew. State Street Q3 earnings beat
• Positive Sentiment: State Street reported record assets under custody and administration of $59.2 trillion and assets under management of $6.3 trillion, up 15% and 16% year over year, respectively. The company also returned $651 million to shareholders through dividends and share repurchases and raised its fiscal-year outlook. State Street record assets and outlook
• Neutral Sentiment: State Street elected Alexander Vollert as an independent director and redeemed senior notes. These corporate actions are unlikely to be the primary drivers of the current trading move. State Street director and debt update
• Negative Sentiment: Revenue of approximately $4.00 billion fell short of the roughly $4.03 billion consensus estimate and declined sequentially. Investors also reacted negatively to disappointing fee revenue, weak net inflows and expectations for higher expenses, despite strong earnings growth. State Street stock reaction to earnings
• Negative Sentiment: A securities-law investigation announcement adds legal and reputational risk, although no wrongdoing has been established. Separately, unusual put-option activity indicates heightened near-term hedging or bearish positioning. State Street investigation notice

State Street Company Profile

State Street Corporation (NYSE: STT) is a financial services company that provides institutional investors, asset managers, asset owners, insurance companies, official institutions and other organizations with investment servicing, investment management and related financial services. Its offerings include custody and fund administration, accounting, transfer agency, collateral management, securities lending, foreign exchange, trading and other capital markets services.

Through State Street Investment Management, the company manages investment strategies and offers products such as exchange-traded funds, index strategies, active strategies and other portfolio solutions.