State Street (NYSE:STT) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• State Street beat earnings expectations, reporting quarterly EPS of $3.69 versus the $3.68 consensus estimate. Revenue totaled $4.0 billion, slightly below analysts’ $4.03 billion forecast.
• Shares opened at $173.94, below their 50-day moving average of $185.34 but above their 200-day average of $168.99; the stock has traded between $104.64 and $195.93 over the past year.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $193.38, despite some recent downgrades and insider sales conducted under pre-arranged trading plans.

State Street (NYSE:STT - Get Free Report) issued its earnings results on Wednesday. The asset manager reported $3.69 earnings per share for the quarter, topping the consensus estimate of $3.68 by $0.01, FiscalAI reports. The company had revenue of $4 billion for the quarter, compared to analyst estimates of $4.03 billion. State Street had a return on equity of 15.26% and a net margin of 15.02%.

State Street Price Performance

Shares of STT stock opened at $173.94 on Wednesday. The firm's 50 day moving average price is $185.34 and its two-hundred day moving average price is $168.99. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. The stock has a market cap of $47.78 billion, a PE ratio of 14.29, a PEG ratio of 0.83 and a beta of 1.41. State Street has a 52-week low of $104.64 and a 52-week high of $195.93.

Insider Activity

In other news, 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 transaction, the executive vice president directly owned 49,794 shares of the company's stock, valued at $9,187,988.88. This trade represents a 16.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction dated Tuesday, July 21st. The stock was 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 approximately $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.27% of the company's stock.

Analyst Ratings Changes

Several brokerages have recently commented on STT. Barclays increased their price target on shares of State Street from $165.00 to $200.00 and gave the stock an "equal weight" rating in a research note on Friday, July 17th. Citigroup upped their price target on State Street from $210.00 to $212.00 and gave the stock a "buy" rating in a report on Monday, October 5th. Bank of America upped their price objective on shares of State Street from $160.00 to $190.00 and gave the company a "neutral" rating in a research report on Tuesday, July 7th. Zacks Research lowered State Street from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 18th. Finally, Weiss Ratings cut shares of State Street from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Tuesday, October 6th. 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.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $193.38.

State Street Company Profile

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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