State Street (NYSE:STT) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup lowered State Street’s price target from $212 to $190 but maintained a “buy” rating, implying 14.78% upside from the prior close. Analysts remain moderately bullish overall, with an average target of $190.62.
• State Street’s latest quarter showed adjusted EPS of $3.69, narrowly beating estimates, while revenue rose 12.9% year over year to $4.0 billion but came in below expectations.
• The stock traded at $165.54, below its 50-day moving average, amid mixed analyst revisions and concerns that weakening macroeconomic tailwinds could limit future growth.

State Street (NYSE:STT - Get Free Report) had its price objective dropped by equities researchers at Citigroup from $212.00 to $190.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the asset manager's stock. Citigroup's target price would indicate a potential upside of 14.78% from the company's previous close.

A number of other research analysts have also weighed in on the company. Barclays lifted their target price on State Street from $165.00 to $200.00 and gave the company an "equal weight" rating in a report on Friday, July 17th. Keefe, Bruyette & Woods upped their target price on State Street from $220.00 to $230.00 and gave the stock an "outperform" rating in a research note on Thursday. UBS Group set a $176.00 price target on shares of State Street in a research note on Friday, June 26th. The Goldman Sachs Group increased their price objective on State Street from $168.00 to $194.00 and gave the company a "buy" rating in a research report on Tuesday, June 30th. Finally, JPMorgan Chase & Co. increased their target price on shares of State Street from $187.00 to $187.50 and gave the company a "neutral" rating in a report on Friday, October 2nd. Ten investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $190.62.

State Street Stock Performance

STT traded down $2.06 during trading on Friday, hitting $165.54. 2,108,107 shares of the company traded hands, compared to its average volume of 2,132,154. The stock's fifty day moving average is $184.58 and its 200 day moving average is $169.60. The company has a quick ratio of 0.59, a current ratio of 0.57 and a debt-to-equity ratio of 1.07. State Street has a one year low of $104.64 and a one year high of $195.93. The firm has a market cap of $45.47 billion, a P/E ratio of 13.47, a price-to-earnings-growth ratio of 0.79 and a beta of 1.41.

State Street (NYSE:STT - Get Free Report) last posted its quarterly earnings data on Wednesday, October 14th. The asset manager reported $3.69 EPS for the quarter, beating the consensus estimate of $3.68 by $0.01. The business had revenue of $4 billion for the quarter, compared to the consensus estimate of $4.03 billion. State Street had a return on equity of 16.36% and a net margin of 15.81%. State Street's revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.78 earnings per share. As a group, equities analysts predict that State Street will post 13.80 EPS for the current fiscal year.

Insider Activity

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. IFM Investors Pty Ltd lifted its stake in State Street by 9.7% in the 1st quarter. IFM Investors Pty Ltd now owns 84,534 shares of the asset manager's stock worth $10,699,000 after purchasing an additional 7,469 shares in the last quarter. New York State Teachers Retirement System lifted its holdings in shares of State Street by 9.7% in the 1st quarter. New York State Teachers Retirement System now owns 303,919 shares of the asset manager's stock worth $38,464,000 after acquiring an additional 26,862 shares during the last quarter. Illinois Municipal Retirement Fund grew its holdings in State Street by 18.3% during the 1st quarter. Illinois Municipal Retirement Fund now owns 85,775 shares of the asset manager's stock valued at $10,856,000 after purchasing an additional 13,245 shares during the last quarter. Envestnet Asset Management Inc. boosted its position in shares of State Street by 4.7% during the second quarter. Envestnet Asset Management Inc. now owns 426,809 shares of the asset manager's stock valued at $72,387,000 after buying an additional 19,035 shares during the period. Finally, Compass Financial Management LLC purchased a new stake in shares of State Street during the second quarter valued at $1,424,000. 87.44% of the stock is owned by hedge funds and other institutional investors.

Key State Street News

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

• Positive Sentiment: Third-quarter adjusted earnings of $3.69 per share narrowly exceeded the $3.68 consensus estimate, while revenue increased 12.9% year over year to approximately $4.00 billion. Improving margins and broad-based growth across the company’s businesses were additional positives. State Street Q3 earnings report
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on STT to $230 from $220 and maintained an “outperform” rating, citing the company’s earnings performance and improving profitability. Analyst forecast revisions
• Positive Sentiment: One analysis characterized State Street as attractively valued, highlighting a PEG ratio below 1, stronger margins and continued earnings growth as reasons for a bullish long-term view. State Street valuation analysis
• Neutral Sentiment: Analysts issued mixed target changes after the results. The divergence reflects confidence in State Street’s earnings and fee growth but uncertainty about the pace of future improvement. Mixed analyst revisions
• Negative Sentiment: Revenue fell short of Wall Street’s approximately $4.03 billion forecast, despite the EPS beat. Investors viewed the miss as evidence that the earnings upside was not broad enough to justify a more positive reaction. State Street revenue miss
• Negative Sentiment: Commentary warned that favorable macroeconomic tailwinds may be fading, potentially slowing market-sensitive revenue growth and limiting further upside. State Street macroeconomic outlook
• Negative Sentiment: Truist lowered its price target to $171 from $190 and kept a “hold” rating, reinforcing investor concerns about valuation and near-term growth. A separate notice also reported a proposed investigation into potential securities-law violations; the allegations have not been established. 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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