State Street Corporation (STT) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of State Street Corporation (NYSE:STT) from a buy rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “Shares of State Street have significantly outperformed the industry, over the last six months. This performance was supported by the company’s impressive earnings surprise history. It hasn’t missed the Zacks Consensus Estimate for earnings in any of 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. Further, given a solid liquidity position, the company is expected to continue with its capital deployment activities. However, mounting expenses (owing to higher compensation and employee benefit costs) might hurt profitability in the near-term.”
Several other equities analysts have also recently issued reports on the company. Wells Fargo & Company began coverage on State Street Corporation in a report on Wednesday, August 9th. They set an outperform rating and a $115.00 price objective for the company. Barclays PLC lifted their price objective on State Street Corporation from $95.00 to $104.00 and gave the stock an overweight rating in a report on Thursday, July 27th. Keefe, Bruyette & Woods reaffirmed an underweight rating on shares of State Street Corporation in a report on Thursday, July 13th. Buckingham Research reaffirmed a buy rating and set a $107.00 price objective (up from $94.00) on shares of State Street Corporation in a report on Monday, July 10th. Finally, Goldman Sachs Group, Inc. (The) raised State Street Corporation from a buy rating to a conviction-buy rating and lifted their price objective for the stock from $92.00 to $100.00 in a report on Wednesday, June 28th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, four have assigned a buy rating and two have issued a strong buy rating to the stock. The company has an average rating of Hold and an average price target of $90.41.
Shares of State Street Corporation (NYSE STT) opened at 92.00 on Tuesday. State Street Corporation has a 52-week low of $68.16 and a 52-week high of $96.26. The company has a market cap of $34.40 billion, a PE ratio of 16.99 and a beta of 1.30. The stock’s 50 day moving average is $92.74 and its 200 day moving average is $84.75.
State Street Corporation (NYSE:STT) last issued its quarterly earnings data on Wednesday, July 26th. The asset manager reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.10. The firm had revenue of $2.81 billion during the quarter, compared to analysts’ expectations of $2.86 billion. State Street Corporation had a return on equity of 12.49% and a net margin of 19.97%. State Street Corporation’s revenue was up 9.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.46 earnings per share. Equities analysts forecast that State Street Corporation will post $6.15 EPS for the current year.
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State Street Corporation announced that its Board of Directors has authorized a stock buyback program on Wednesday, June 28th that authorizes the company to repurchase $1.40 billion in shares. This repurchase authorization authorizes the asset manager to buy up to 4.2% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 16th. Stockholders of record on Monday, October 2nd will be given a $0.42 dividend. This is an increase from State Street Corporation’s previous quarterly dividend of $0.38. The ex-dividend date is Friday, September 29th. This represents a $1.68 annualized dividend and a dividend yield of 1.83%. 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 sale, the insider now owns 21,170 shares of the company’s stock, valued at $1,969,021.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Jeffrey N. Carp sold 2,656 shares of the company’s stock in a transaction dated Tuesday, June 13th. The stock was sold at an average price of $87.88, for a total value of $233,409.28. The disclosure for this sale can be found here. Insiders sold 17,136 shares of company stock valued at $1,551,722 in the last ninety days. Company insiders own 0.71% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Trust N.A. increased its position in shares of State Street Corporation by 0.5% in the second quarter. Raymond James Trust N.A. now owns 3,250 shares of the asset manager’s stock worth $291,000 after buying an additional 17 shares in the last quarter. Burns J W & Co. Inc. NY increased its position in shares of State Street Corporation by 0.9% in the second quarter. Burns J W & Co. Inc. NY now owns 2,700 shares of the asset manager’s stock worth $242,000 after buying an additional 23 shares in the last quarter. Klingenstein Fields & Co. LLC increased its position in shares of State Street Corporation by 0.9% in the second quarter. Klingenstein Fields & Co. LLC now owns 2,687 shares of the asset manager’s stock worth $241,000 after buying an additional 25 shares in the last quarter. Bank of Hawaii increased its position in shares of State Street Corporation by 0.4% in the first quarter. Bank of Hawaii now owns 8,415 shares of the asset manager’s stock worth $670,000 after buying an additional 30 shares in the last quarter. Finally, Anchor Capital Advisors LLC increased its position in shares of State Street Corporation by 0.3% in the first quarter. Anchor Capital Advisors LLC now owns 11,582 shares of the asset manager’s stock worth $922,000 after buying an additional 35 shares in the last quarter. 87.34% of the stock is owned by hedge funds and other institutional investors.
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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