State Street Corp. (STT) Stock Rating Lowered by Zacks Investment Research
State Street Corp. (NYSE:STT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “State Street's third-quarter 2016 earnings easily surpassed the Zacks Consensus Estimate, driven by improved top line. However, lower trading services revenue and an increase in expenses were the headwinds. Management expects that the acquisition of GE Asset Management will lead to revenue and cost synergies in the quarters ahead. Further, the company intends to lower expenses and enhance cost efficiencies by 2020 through its multi-year restructuring plan. However, rising expenses, along with stringent regulations will continue to weigh on its financials. Also, net interest margin is likely to be under pressure in the coming quarters due to the persistent low-rate environment.”
Other equities analysts also recently issued reports about the company. Barclays PLC reissued an “overweight” rating and set a $71.00 price objective on shares of State Street Corp. in a research report on Thursday, July 28th. TheStreet raised State Street Corp. from a “hold” rating to a “buy” rating in a report on Thursday, August 4th. Jefferies Group reaffirmed a “buy” rating on shares of State Street Corp. in a report on Friday, August 5th. Keefe, Bruyette & Woods upped their price target on State Street Corp. from $54.00 to $58.00 and gave the company an “underperform” rating in a report on Thursday, July 28th. Finally, Citigroup Inc. upped their price target on State Street Corp. from $65.00 to $68.00 and gave the company a “neutral” rating in a report on Thursday, July 28th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus target price of $72.81.
State Street Corp. (NYSE:STT) opened at 79.25 on Monday. The firm’s 50-day moving average is $71.04 and its 200-day moving average is $64.82. The stock has a market capitalization of $30.57 billion, a price-to-earnings ratio of 16.22 and a beta of 1.32. State Street Corp. has a 52-week low of $50.60 and a 52-week high of $79.27.
State Street Corp. (NYSE:STT) last announced its quarterly earnings data on Wednesday, October 26th. The company reported $1.35 EPS for the quarter, topping the Zacks’ consensus estimate of $1.25 by $0.10. State Street Corp. had a return on equity of 11.59% and a net margin of 19.97%. The business earned $2.62 billion during the quarter, compared to the consensus estimate of $2.72 billion. During the same period in the previous year, the company posted $1.16 earnings per share. The business’s revenue for the quarter was up 5.2% on a year-over-year basis. Analysts predict that State Street Corp. will post $5.09 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 17th. Shareholders of record on Monday, October 3rd were given a $0.38 dividend. This is a boost from State Street Corp.’s previous quarterly dividend of $0.34. The ex-dividend date of this dividend was Thursday, September 29th. This represents a $1.52 annualized dividend and a yield of 1.92%. State Street Corp.’s dividend payout ratio is presently 31.08%.
In other State Street Corp. news, EVP Karen C. Keenan sold 7,500 shares of the company’s stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $70.00, for a total value of $525,000.00. Following the sale, the executive vice president now owns 49,547 shares of the company’s stock, valued at $3,468,290. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jeffrey N. Carp sold 15,000 shares of the company’s stock in a transaction on Monday, October 3rd. The shares were sold at an average price of $69.26, for a total value of $1,038,900.00. The disclosure for this sale can be found here. 0.64% of the stock is owned by company insiders.
A number of hedge funds have recently bought and sold shares of the stock. Global X Management Co. LLC raised its stake in State Street Corp. by 203.0% in the third quarter. Global X Management Co. LLC now owns 1,494 shares of the company’s stock worth $104,000 after buying an additional 1,001 shares during the last quarter. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of State Street Corp. during the second quarter worth about $113,000. Advisory Services Network LLC raised its stake in shares of State Street Corp. by 4.4% in the second quarter. Advisory Services Network LLC now owns 2,154 shares of the company’s stock worth $116,000 after buying an additional 90 shares during the last quarter. New York Life Trust Co. acquired a new stake in shares of State Street Corp. during the third quarter worth about $119,000. Finally, Rockefeller Financial Services Inc. raised its stake in shares of State Street Corp. by 86.3% in the second quarter. Rockefeller Financial Services Inc. now owns 2,235 shares of the company’s stock worth $121,000 after buying an additional 1,035 shares during the last quarter. 86.96% of the stock is currently owned by institutional investors.
State Street Corp. Company Profile
State Street Corporation, the parent company, is a financial holding company. The parent company provides financial and managerial support to its legal and operating subsidiaries. The Company, through its subsidiary, State Street Bank, provides a range of financial services and products to institutional investors across the world.
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