American Century Companies Inc. Raises Stock Holdings in State Street Corporation $STT

Key Points

• American Century Companies Inc. increased its stake in State Street Corporation by 4.6% in Q1, owning approximately 351,064 shares valued at $31.43 million.
• Analysts have raised their price targets for State Street, with Wells Fargo increasing it to $121.00 and Truist Financial to $125.00, indicating a generally positive outlook for the stock.
• State Street recently announced a quarterly dividend increase from $0.76 to $0.84 per share, representing a 3.0% yield for investors.

American Century Companies Inc. increased its holdings in shares of State Street Corporation (NYSE:STT - Free Report) by 4.6% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 351,064 shares of the asset manager's stock after purchasing an additional 15,396 shares during the quarter. American Century Companies Inc. owned 0.12% of State Street worth $31,431,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Ethic Inc. increased its position in shares of State Street by 13.2% during the 1st quarter. Ethic Inc. now owns 46,466 shares of the asset manager's stock worth $4,127,000 after purchasing an additional 5,416 shares during the last quarter. Dimensional Fund Advisors LP grew its position in State Street by 0.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,068,867 shares of the asset manager's stock valued at $274,732,000 after acquiring an additional 14,011 shares in the last quarter. Providence Capital Advisors LLC acquired a new position in State Street in the 1st quarter valued at about $2,245,000. Azimuth Capital Investment Management LLC grew its position in State Street by 2.6% in the 1st quarter. Azimuth Capital Investment Management LLC now owns 116,105 shares of the asset manager's stock valued at $10,395,000 after acquiring an additional 2,985 shares in the last quarter. Finally, Fox Run Management L.L.C. acquired a new position in State Street in the 1st quarter valued at about $979,000. 87.44% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Cfra Research raised State Street from a "hold" rating to a "moderate buy" rating in a research report on Tuesday, July 15th. Wells Fargo & Company lifted their target price on State Street from $113.00 to $121.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Truist Financial lifted their target price on State Street from $116.00 to $125.00 and gave the company a "buy" rating in a research report on Thursday, August 14th. Morgan Stanley lifted their target price on State Street from $110.00 to $114.00 and gave the company an "overweight" rating in a research report on Tuesday, July 1st. Finally, Citigroup lifted their target price on State Street from $100.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, State Street currently has an average rating of "Moderate Buy" and an average price target of $112.82.

Insiders Place Their Bets

In related news, EVP Michael L. Richards sold 990 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total transaction of $108,197.10. Following the completion of the sale, the executive vice president owned 41,332 shares in the company, valued at $4,517,174.28. The trade was a 2.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.29% of the stock is currently owned by insiders.

State Street Stock Up 2.7%

Shares of State Street stock traded up $3.0010 on Friday, reaching $115.3610. 2,144,667 shares of the company were exchanged, compared to its average volume of 1,532,551. State Street Corporation has a 1-year low of $72.81 and a 1-year high of $115.65. The company has a market cap of $32.73 billion, a P/E ratio of 12.92, a price-to-earnings-growth ratio of 1.13 and a beta of 1.48. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.57 and a quick ratio of 0.57. The stock's 50 day moving average price is $108.38 and its 200-day moving average price is $97.46.

State Street (NYSE:STT - Get Free Report) last announced its quarterly earnings data on Tuesday, July 15th. The asset manager reported $2.53 EPS for the quarter, topping analysts' consensus estimates of $2.36 by $0.17. State Street had a return on equity of 12.96% and a net margin of 12.59%.The business had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period in the previous year, the company posted $2.15 earnings per share. The business's revenue for the quarter was up 2.9% on a year-over-year basis. As a group, equities analysts forecast that State Street Corporation will post 9.68 EPS for the current year.

State Street Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Wednesday, October 1st will be paid a dividend of $0.84 per share. The ex-dividend date is Wednesday, October 1st. This is a positive change from State Street's previous quarterly dividend of $0.76. This represents a $3.36 annualized dividend and a yield of 2.9%. State Street's dividend payout ratio (DPR) is presently 34.04%.

State Street Company Profile

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody, accounting, regulatory reporting, investor, and performance and analytics; middle office products, such as IBOR, transaction management, loans, cash, derivatives and collateral, record keeping, and client reporting and investment analytics; finance leasing; foreign exchange, and brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.