Zacks Investment Research Upgrades State Street Corp. (STT) to Buy
State Street Corp. (NYSE:STT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm presently has a $88.00 price objective on the stock. Zacks Investment Research’s price target suggests a potential upside of 12.99% from the company’s previous close.
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.”
Several other equities analysts have also recently weighed in on STT. Jefferies Group reissued a “buy” rating and issued a $74.00 target price (up from $63.00) on shares of State Street Corp. in a research note on Thursday, July 28th. Citigroup Inc. raised 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. Deutsche Bank AG raised their price target on State Street Corp. from $60.00 to $66.00 and gave the company a “hold” rating in a report on Thursday, July 28th. Keefe, Bruyette & Woods raised 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, Barclays PLC reaffirmed an “overweight” rating and set a $71.00 price target on shares of State Street Corp. in a report on Thursday, July 28th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and six have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of $72.81.
Shares of State Street Corp. (NYSE:STT) opened at 77.88 on Tuesday. The company has a market cap of $30.04 billion, a price-to-earnings ratio of 15.94 and a beta of 1.32. State Street Corp. has a 12-month low of $50.60 and a 12-month high of $79.27. The stock has a 50 day moving average of $71.75 and a 200 day moving average of $65.16.
State Street Corp. (NYSE:STT) last released its earnings results on Wednesday, October 26th. The company reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.10. State Street Corp. had a net margin of 19.97% and a return on equity of 11.59%. The business earned $2.62 billion during the quarter, compared to analysts’ expectations of $2.72 billion. During the same period last year, the business earned $1.16 earnings per share. The firm’s revenue was up 5.2% on a year-over-year basis. On average, equities analysts expect that State Street Corp. will post $5.09 earnings per share for the current fiscal year.
In other State Street Corp. news, EVP Jeffrey N. Carp sold 2,926 shares of State Street Corp. stock in a transaction dated Monday, November 14th. The stock was sold at an average price of $77.38, for a total value of $226,413.88. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Karen C. Keenan sold 1,000 shares of State Street Corp. stock in a transaction dated Thursday, October 20th. The shares were sold at an average price of $70.57, for a total value of $70,570.00. Following the completion of the transaction, the executive vice president now owns 48,547 shares in the company, valued at approximately $3,425,961.79. The disclosure for this sale can be found here. 0.64% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Emerald Acquisition Ltd. acquired a new position in State Street Corp. during the second quarter worth about $223,563,000. Yacktman Asset Management LP boosted its position in State Street Corp. by 0.9% in the second quarter. Yacktman Asset Management LP now owns 1,690,800 shares of the company’s stock worth $91,168,000 after buying an additional 15,000 shares in the last quarter. Brandes Investment Partners LP boosted its position in State Street Corp. by 2.2% in the second quarter. Brandes Investment Partners LP now owns 2,678,770 shares of the company’s stock worth $144,439,000 after buying an additional 58,873 shares in the last quarter. Legal & General Group Plc boosted its position in State Street Corp. by 4.6% in the first quarter. Legal & General Group Plc now owns 1,839,918 shares of the company’s stock worth $107,671,000 after buying an additional 81,262 shares in the last quarter. Finally, Strs Ohio boosted its position in State Street Corp. by 0.3% in the second quarter. Strs Ohio now owns 650,842 shares of the company’s stock worth $35,093,000 after buying an additional 2,180 shares in the last quarter. Hedge funds and other institutional investors own 86.96% of the company’s stock.
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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