State Street (NYSE:STT) Given New $171.00 Price Target at Truist Financial

Key Points

• Truist Financial lowered State Street’s price target from $190 to $171 and maintained a “hold” rating, implying only 2.58% upside from the prior close.
• Analyst sentiment remains mixed but leans positive: State Street has a consensus “Moderate Buy” rating and an average price target of $191.91, with 10 Buy ratings and six Holds.
• State Street slightly beat quarterly EPS expectations at $3.69 versus $3.68, while revenue rose 12.9% year over year to $4 billion but fell short of the $4.03 billion consensus estimate.

State Street (NYSE:STT - Get Free Report) had its price objective reduced by Truist Financial from $190.00 to $171.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "hold" rating on the asset manager's stock. Truist Financial's price objective would indicate a potential upside of 2.58% from the company's previous close.

A number of other brokerages have also weighed in on STT. Weiss Ratings lowered shares of State Street from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Tuesday, October 6th. Royal Bank Of Canada dropped their price target on shares of State Street from $196.00 to $175.00 and set a "sector perform" rating on the stock in a research report on Thursday. Barclays increased their price target on shares of State Street from $165.00 to $200.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. Citigroup boosted their target price on State Street from $210.00 to $212.00 and gave the stock a "buy" rating in a report on Monday, October 5th. Finally, BMO Capital Markets lowered their price target on shares of State Street from $212.00 to $200.00 and set an "outperform" rating on the stock in a report on Tuesday, October 6th. Ten equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $191.91.

State Street Price Performance

NYSE STT traded down $0.18 on Thursday, hitting $166.71. 1,096,675 shares of the company were exchanged, compared to its average volume of 2,116,621. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.04. The company has a market cap of $45.79 billion, a P/E ratio of 14.70, a P/E/G ratio of 0.83 and a beta of 1.41. The firm has a 50 day moving average of $184.93 and a two-hundred day moving average of $169.28. State Street has a 1-year low of $104.64 and a 1-year high of $195.93.

State Street (NYSE:STT - Get Free Report) last issued its earnings results on Wednesday, October 14th. The asset manager reported $3.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.68 by $0.01. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4 billion for the quarter, compared to analyst estimates of $4.03 billion. During the same quarter last year, the firm earned $2.78 EPS. The company's revenue for the quarter was up 12.9% on a year-over-year basis. On average, equities analysts predict that State Street will post 13.80 EPS for the current year.

Insider Activity at State Street

In related news, CEO Hanley Ronald P. O sold 14,553 shares of the business's stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total value of $2,680,226.01. Following the transaction, the chief executive officer owned 240,959 shares in the company, valued at $44,377,419.03. The trade was a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of State Street stock in a transaction on Friday, July 24th. The shares were sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the completion of the sale, the executive vice president owned 49,794 shares of the company's stock, valued at $9,187,988.88. This represents a 16.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.27% of the company's stock.

Institutional Trading of State Street

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Western Wealth Management LLC boosted its holdings in State Street by 3.1% during the 1st quarter. Western Wealth Management LLC now owns 2,001 shares of the asset manager's stock worth $253,000 after acquiring an additional 60 shares during the last quarter. CX Institutional increased its position in State Street by 1.0% in the second quarter. CX Institutional now owns 9,788 shares of the asset manager's stock worth $1,660,000 after buying an additional 98 shares during the last quarter. Greenleaf Trust raised its stake in State Street by 0.6% in the 2nd quarter. Greenleaf Trust now owns 17,295 shares of the asset manager's stock valued at $2,933,000 after acquiring an additional 99 shares during the period. Oregon Public Employees Retirement Fund raised its position in shares of State Street by 0.3% in the first quarter. Oregon Public Employees Retirement Fund now owns 32,024 shares of the asset manager's stock valued at $4,053,000 after purchasing an additional 100 shares during the period. Finally, Bridgewater Advisors Inc. lifted its position in shares of State Street by 5.5% during the first quarter. Bridgewater Advisors Inc. now owns 1,945 shares of the asset manager's stock worth $246,000 after acquiring an additional 101 shares in the last quarter. 87.44% of the stock is owned by institutional investors.

Key Headlines Impacting State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: Keefe, Bruyette & Woods raised its price target for State Street (STT) from $220 to $230 and upgraded the stock to “outperform,” implying substantial upside from recent levels. This provides a bullish counterpoint to the post-earnings selloff. Benzinga analyst action
• Positive Sentiment: Third-quarter adjusted earnings reached $3.69 per share, exceeding consensus estimates of approximately $3.65 to $3.68 and rising from $2.78 a year earlier. Net income increased 27% year over year, while fee revenue and net interest income also grew. State Street Q3 earnings beat
• Positive Sentiment: State Street reported record assets under custody and administration of $59.2 trillion and assets under management of $6.3 trillion, up 15% and 16% year over year, respectively. The company also returned $651 million to shareholders through dividends and share repurchases and raised its fiscal-year outlook. State Street record assets and outlook
• Neutral Sentiment: State Street elected Alexander Vollert as an independent director and redeemed senior notes. These corporate actions are unlikely to be the primary drivers of the current trading move. State Street director and debt update
• Negative Sentiment: Revenue of approximately $4.00 billion fell short of the roughly $4.03 billion consensus estimate and declined sequentially. Investors also reacted negatively to disappointing fee revenue, weak net inflows and expectations for higher expenses, despite strong earnings growth. State Street stock reaction to earnings
• Negative Sentiment: A securities-law investigation announcement adds legal and reputational risk, although no wrongdoing has been established. Separately, unusual put-option activity indicates heightened near-term hedging or bearish positioning. State Street investigation notice

About State Street

State Street Corporation NYSE: STT is a financial services company that provides institutional investors, asset managers, asset owners, insurance companies, official institutions and other organizations with investment servicing, investment management and related financial services. Its offerings include custody and fund administration, accounting, transfer agency, collateral management, securities lending, foreign exchange, trading and other capital markets services.

Through State Street Investment Management, the company manages investment strategies and offers products such as exchange-traded funds, index strategies, active strategies and other portfolio solutions.

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