State Street Corp. (STT) Downgraded by Zacks Investment Research to “Hold”
State Street Corp. (NYSE:STT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
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 higher expenses were on the downside. 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 through its multi-year restructuring plan. Nevertheless, rising expenses, along with stringent regulations will continue to weigh on its financials. Moreover, net interest margin is likely to be under pressure in the coming quarters due to the persistent low-rate environment.”
A number of other research firms have also recently commented on STT. Jefferies Group lifted their target price on State Street Corp. from $74.00 to $80.00 and gave the stock a “buy” rating in a research report on Tuesday, September 6th. Keefe, Bruyette & Woods lifted their target price on State Street Corp. from $54.00 to $58.00 and gave the stock an “underperform” rating in a research report on Thursday, July 28th. Deutsche Bank AG lifted their target price on State Street Corp. from $60.00 to $66.00 and gave the stock a “hold” rating in a research report on Thursday, July 28th. lifted their target price on State Street Corp. from $60.00 to $73.00 and gave the stock an “underperform” rating in a research report on Friday, September 23rd. Finally, Morgan Stanley upgraded State Street Corp. from an “underweight” rating to an “equal weight” rating and lifted their target price for the stock from $64.00 to $84.00 in a research report on Monday, November 14th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $73.16.
Shares of State Street Corp. (NYSE:STT) traded down 0.75% during trading on Tuesday, reaching $78.00. The company’s stock had a trading volume of 747,268 shares. State Street Corp. has a 52 week low of $50.60 and a 52 week high of $79.27. The firm has a market capitalization of $30.09 billion, a P/E ratio of 15.96 and a beta of 1.32. The company has a 50 day moving average price of $72.50 and a 200 day moving average price of $65.58.
State Street Corp. (NYSE:STT) last posted its earnings results 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 had revenue of $2.62 billion for the quarter, compared to analysts’ expectations of $2.72 billion. During the same quarter in the previous year, the firm earned $1.16 earnings per share. The business’s revenue was up 5.2% compared to the same quarter last year. On average, equities research analysts expect that State Street Corp. will post $5.09 EPS for the current fiscal year.
In related news, EVP Karen C. Keenan sold 7,500 shares of the company’s stock in a transaction that occurred 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 approximately $3,468,290. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Jeffrey N. Carp sold 15,000 shares of the company’s stock in a transaction that occurred 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. Insiders own 0.64% of the company’s stock.
A number of large investors have recently bought and sold shares of STT. D.A. Davidson & CO. raised its stake in State Street Corp. by 6.7% in the third quarter. D.A. Davidson & CO. now owns 134,599 shares of the company’s stock worth $9,370,000 after buying an additional 8,466 shares during the last quarter. Piedmont Investment Advisors LLC bought a new stake in State Street Corp. during the third quarter worth about $5,652,000. Colony Group LLC raised its stake in State Street Corp. by 9.0% in the third quarter. Colony Group LLC now owns 6,411 shares of the company’s stock worth $446,000 after buying an additional 532 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in State Street Corp. by 10.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 37,536,973 shares of the company’s stock worth $2,613,699,000 after buying an additional 3,594,037 shares during the last quarter. Finally, Puzo Michael J raised its stake in State Street Corp. by 20.1% in the third quarter. Puzo Michael J now owns 8,964 shares of the company’s stock worth $624,000 after buying an additional 1,500 shares during the last quarter. 86.32% of the stock is currently owned by hedge funds and other 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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