State Street Corporation (STT) Lifted to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of State Street Corporation (NYSE:STT) from a hold rating to a buy rating in a report published on Wednesday morning. Zacks Investment Research currently has $103.00 price objective on the asset manager’s stock.
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. Though mounting expenses (owing to higher compensation and employee benefit costs) might hurt profitability in the near-term, given a solid liquidity position, the company is expected to continue with its capital deployment activities.”
A number of other research analysts also recently issued reports on STT. Keefe, Bruyette & Woods set a $93.00 price target on State Street Corporation and gave the stock a hold rating in a research note on Monday, August 28th. Wells Fargo & Company started coverage on State Street Corporation in a research report on Wednesday, August 9th. They set an outperform rating and a $115.00 price objective for the company. Barclays PLC increased their price objective on State Street Corporation from $95.00 to $104.00 and gave the stock an overweight rating in a research report on Thursday, July 27th. 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 research 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 increased their price objective for the stock from $92.00 to $100.00 in a research report on Wednesday, June 28th. Two analysts have rated the stock with a sell rating, ten have given a hold rating, five have given a buy rating and two have assigned a strong buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $90.41.
Shares of State Street Corporation (NYSE:STT) opened at 93.18 on Wednesday. State Street Corporation has a one year low of $68.16 and a one year high of $96.26. The firm has a market cap of $34.85 billion, a P/E ratio of 17.20 and a beta of 1.31. The firm has a 50-day moving average price of $92.95 and a 200 day moving average price of $85.27.
State Street Corporation (NYSE:STT) last released its quarterly earnings data on Wednesday, July 26th. The asset manager reported $1.67 EPS for the quarter, beating analysts’ consensus estimates of $1.57 by $0.10. State Street Corporation had a return on equity of 12.49% and a net margin of 19.97%. The business had revenue of $2.81 billion for the quarter, compared to the consensus estimate of $2.86 billion. During the same quarter in the prior year, the business posted $1.46 EPS. The business’s revenue for the quarter was up 9.2% on a year-over-year basis. On average, analysts forecast that State Street Corporation will post $6.15 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 16th. Shareholders of record on Monday, October 2nd will be given a dividend of $0.42 per share. This is an increase from State Street Corporation’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Friday, September 29th. This represents a $1.68 annualized dividend and a yield of 1.80%. State Street Corporation’s dividend payout ratio (DPR) is presently 28.15%.
State Street Corporation declared that its board has authorized a stock repurchase program on Wednesday, June 28th that authorizes the company to buyback $1.40 billion in shares. This buyback authorization authorizes the asset manager to reacquire up to 4.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.
In other State Street Corporation news, Chairman Joseph L. Hooley sold 5,666 shares of the firm’s stock in a transaction on Tuesday, June 13th. The stock was sold at an average price of $87.88, for a total transaction of $497,928.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Andrew Erickson sold 353 shares of the firm’s stock in a transaction on Wednesday, August 16th. The stock was sold at an average price of $93.01, for a total value of $32,832.53. Following the transaction, the insider now directly owns 21,170 shares of the company’s stock, valued at approximately $1,969,021.70. The disclosure for this sale can be found here. Insiders have sold 17,136 shares of company stock valued at $1,551,722 in the last three months. 0.71% of the stock is currently owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in STT. Raymond James Trust N.A. increased its stake 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 stake 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 stake 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 stake 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 stake 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 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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