State Street Corporation (NYSE:STT) Stock Has Average Target Price of $190.03

Key Points

• Analysts hold a moderately bullish view: Ten of 16 firms rate State Street a buy, while six recommend holding the stock. The consensus 12-month price target is $190.03, above its recent $169.63 opening price.
• State Street recently exceeded quarterly earnings expectations, reporting $3.69 in EPS versus the $3.68 consensus estimate. Revenue reached $4 billion and increased 12.9% year over year, although it slightly missed the $4.03 billion estimate.
• Shares face mixed signals, including several analyst target reductions, a reported investor investigation, and insider sales conducted under pre-arranged trading plans. Institutional investors remain heavily involved, owning approximately 87.44% of the stock.

State Street Corporation (NYSE:STT - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the sixteen ratings firms that are currently covering the company, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $190.03.

Several research firms have commented on STT. Royal Bank Of Canada decreased their price objective on shares of State Street from $196.00 to $175.00 and set a "sector perform" rating on the stock in a report on Thursday, October 15th. Truist Financial cut their target price on shares of State Street from $190.00 to $171.00 and set a "hold" rating for the company in a research note on Thursday, October 15th. BMO Capital Markets reduced their target price on shares of State Street from $200.00 to $185.00 and set an "outperform" rating for the company in a report on Monday, October 19th. Keefe, Bruyette & Woods lifted their target price on shares of State Street from $220.00 to $230.00 and gave the stock an "outperform" rating in a report on Thursday, October 15th. Finally, Bank of America upped their price target on shares of State Street from $160.00 to $190.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th.

State Street Stock Down 2.4%

STT stock opened at $169.63 on Friday. State Street has a 1-year low of $111.63 and a 1-year high of $195.93. The business's 50 day simple moving average is $180.18 and its 200 day simple moving average is $158.73. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.02. The firm has a market capitalization of $46.15 billion, a PE ratio of 13.85, a PEG ratio of 0.79 and a beta of 1.41.

State Street (NYSE:STT - Get Free Report) last announced its quarterly 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 return on equity of 16.11% and a net margin of 15.81%. The business had revenue of $4 billion during the quarter, compared to the consensus estimate of $4.03 billion. During the same quarter last year, the firm posted $2.78 EPS. The company's quarterly revenue was up 12.9% on a year-over-year basis. As a group, research analysts anticipate that State Street will post 13.77 EPS for the current year.

Key State Street News

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

• Positive Sentiment: JPMorgan raised its price target for State Street from $187.50 to $192.50, implying meaningful potential upside from recent trading levels. However, the firm maintained a “neutral” rating, limiting the bullish impact. JPMorgan analyst action
• Neutral Sentiment: Barclays reiterated a “hold” view on STT. The lack of a positive rating change suggests analysts remain cautious despite State Street’s recent earnings beat and year-over-year revenue growth. Barclays hold rating
• Neutral Sentiment: State Street Global Advisors and affiliated entities reported changes to, or exits from, substantial holdings in several Australian-listed companies, including Deterra Royalties, Sims, Greatland Resources, Pantoro Gold, and Downer EDI. These portfolio disclosures appear routine and have limited direct implications for STT’s earnings.
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of State Street investors. The announcement does not establish wrongdoing, but the possibility of litigation adds a reputational and legal overhang to the shares. Pomerantz investor investigation
• Negative Sentiment: Executive Vice President W. Bradford Hu sold 7,099 shares worth approximately $1.2 million, reducing his position by 14.26%. The transaction occurred under a pre-arranged Rule 10b5-1 plan, which makes it a weaker bearish signal than discretionary insider selling, but it may still weigh modestly on sentiment. State Street insider sale

Insider Activity at State Street

In other news, CEO Ronald O’Hanley sold 14,554 shares of the business's stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $164.60, for a total transaction of $2,395,588.40. Following the completion of the sale, the chief executive officer owned 215,905 shares in the company, valued at $35,537,963. The trade was a 6.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 7,099 shares of the business's stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $168.63, for a total value of $1,197,104.37. Following the sale, the executive vice president owned 42,695 shares of the company's stock, valued at approximately $7,199,657.85. This represents a 14.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.27% of the company's stock.

Institutional Trading of State Street

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in State Street in the 2nd quarter valued at about $4,139,389,000. Legal & General Group Plc bought a new stake in shares of State Street during the 2nd quarter worth approximately $330,849,000. Bank of New York Mellon Corp bought a new stake in shares of State Street during the 2nd quarter worth approximately $301,393,000. Bank of America Corp DE bought a new stake in shares of State Street during the 2nd quarter worth approximately $285,936,000. Finally, Regents of The University of California boosted its position in shares of State Street by 15.6% during the 1st quarter. Regents of The University of California now owns 10,065,118 shares of the asset manager's stock worth $1,273,841,000 after acquiring an additional 1,358,923 shares in the last quarter. 87.44% of the stock is owned by institutional investors and hedge funds.

State Street Company Profile

State Street Corporation is a financial services holding company headquartered in Boston, Massachusetts. Founded in 1792, it provides services primarily to institutional investors, including asset owners, asset managers, insurance companies, official institutions and other financial organizations.

The company's businesses include investment servicing, asset management, securities finance, foreign exchange, and trading and research services. Through its servicing operations, State Street provides custody, fund accounting, administration, investment operations, transfer agency and related support.

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