Allstate Corp Increases Position in State Street Corporation $STT

Key Points

• Allstate Corp more than doubled its stake in State Street during the fourth quarter, increasing holdings by 108.6% to 20,914 shares valued at about $2.7 million.
• State Street’s earnings beat expectations in its latest quarter, reporting $2.84 EPS on $3.80 billion in revenue, both above analyst forecasts, while revenue rose 15.6% year over year.
• Analysts remain mostly bullish on STT, with several firms raising price targets and the stock carrying a consensus “Moderate Buy” rating and average target of $158.57.

Allstate Corp grew its stake in State Street Corporation (NYSE:STT - Free Report) by 108.6% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 20,914 shares of the asset manager's stock after acquiring an additional 10,887 shares during the quarter. Allstate Corp's holdings in State Street were worth $2,698,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. JPL Wealth Management LLC purchased a new position in State Street during the 3rd quarter worth $29,000. Board of the Pension Protection Fund purchased a new stake in shares of State Street in the fourth quarter worth about $39,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of State Street in the third quarter worth about $35,000. Ameriflex Group Inc. boosted its stake in shares of State Street by 102.5% in the third quarter. Ameriflex Group Inc. now owns 318 shares of the asset manager's stock worth $37,000 after buying an additional 161 shares during the last quarter. Finally, Annis Gardner Whiting Capital Advisors LLC boosted its stake in shares of State Street by 38.2% in the third quarter. Annis Gardner Whiting Capital Advisors LLC now owns 340 shares of the asset manager's stock worth $39,000 after buying an additional 94 shares during the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, COO Mostapha Tahiri sold 9,611 shares of the firm's stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $152.93, for a total transaction of $1,469,810.23. Following the transaction, the chief operating officer owned 64,642 shares of the company's stock, valued at $9,885,701.06. This trade represents a 12.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP John Plansky sold 16,100 shares of the firm's stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $124.32, for a total value of $2,001,552.00. Following the transaction, the executive vice president directly owned 56,162 shares in the company, valued at approximately $6,982,059.84. This represents a 22.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 28,711 shares of company stock valued at $3,933,032 over the last quarter. 0.27% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on STT. Weiss Ratings reaffirmed a "buy (b)" rating on shares of State Street in a report on Monday, April 20th. Wells Fargo & Company increased their price target on State Street from $162.00 to $171.00 and gave the company an "overweight" rating in a report on Tuesday. Evercore set a $158.00 price target on State Street and gave the company an "outperform" rating in a report on Monday, April 20th. Citigroup increased their price objective on State Street from $150.00 to $172.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Argus increased their price objective on State Street from $140.00 to $168.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Three equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $158.57.

State Street Stock Down 0.4%

State Street stock opened at $157.91 on Thursday. State Street Corporation has a 1-year low of $94.72 and a 1-year high of $159.31. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.57 and a quick ratio of 0.57. The stock has a market cap of $43.70 billion, a PE ratio of 16.01, a P/E/G ratio of 0.87 and a beta of 1.45. The stock's fifty day moving average is $141.88 and its two-hundred day moving average is $131.78.

State Street (NYSE:STT - Get Free Report) last posted its earnings results on Friday, April 17th. The asset manager reported $2.84 EPS for the quarter, topping analysts' consensus estimates of $2.64 by $0.20. State Street had a return on equity of 14.22% and a net margin of 13.47%.The business had revenue of $3.80 billion for the quarter, compared to analysts' expectations of $3.59 billion. During the same quarter in the previous year, the firm earned $2.04 earnings per share. The business's revenue was up 15.6% compared to the same quarter last year. On average, sell-side analysts expect that State Street Corporation will post 12.35 EPS for the current fiscal year.

State Street Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, July 13th. Investors of record on Wednesday, July 1st will be issued a dividend of $0.84 per share. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.1%. State Street's dividend payout ratio (DPR) is currently 34.08%.

About State Street

State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.

State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.

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