Canada Pension Plan Investment Board Raises Stock Holdings in State Street Corporation $STT

Key Points

• The Canada Pension Plan Investment Board increased its stake in State Street Corporation by 29.1%, owning a total of 580,636 shares valued at approximately $51.98 million.
• State Street has received several upgrades from analysts, with ratings ranging from "Hold" to "Buy", and an average target price set at $112.82.
• The company announced a dividend increase, now at $0.84 per share, with a payout ratio of 34.04%, reflecting its commitment to returning value to shareholders.

Canada Pension Plan Investment Board increased its holdings in shares of State Street Corporation (NYSE:STT - Free Report) by 29.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 580,636 shares of the asset manager's stock after purchasing an additional 131,041 shares during the period. Canada Pension Plan Investment Board owned approximately 0.20% of State Street worth $51,984,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also modified their holdings of STT. First Pacific Financial acquired a new position in State Street during the first quarter worth about $25,000. Capital Analysts LLC increased its stake in State Street by 3,914.3% during the 1st quarter. Capital Analysts LLC now owns 281 shares of the asset manager's stock worth $25,000 after buying an additional 274 shares during the period. Larson Financial Group LLC increased its position in shares of State Street by 40.8% in the 1st quarter. Larson Financial Group LLC now owns 407 shares of the asset manager's stock valued at $36,000 after purchasing an additional 118 shares during the last quarter. Golden State Wealth Management LLC increased its position in shares of State Street by 186.7% in the 1st quarter. Golden State Wealth Management LLC now owns 476 shares of the asset manager's stock valued at $43,000 after purchasing an additional 310 shares during the last quarter. Finally, Minot DeBlois Advisors LLC acquired a new position in shares of State Street in the 4th quarter valued at $49,000. Hedge funds and other institutional investors own 87.44% of the company's stock.

State Street Price Performance

STT stock traded down $1.41 during mid-day trading on Friday, hitting $112.65. The stock had a trading volume of 823,009 shares, compared to its average volume of 2,040,856. The firm has a fifty day simple moving average of $110.88 and a 200 day simple moving average of $98.44. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 1.09. State Street Corporation has a 52 week low of $72.81 and a 52 week high of $116.37. The firm has a market capitalization of $31.96 billion, a P/E ratio of 12.62, a P/E/G ratio of 1.11 and a beta of 1.50.

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

State Street Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Wednesday, October 1st will be paid a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a dividend yield of 3.0%. This is a boost from State Street's previous quarterly dividend of $0.76. The ex-dividend date of this dividend is Wednesday, October 1st. State Street's payout ratio is currently 34.04%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on STT shares. Bank of America upped their price objective on shares of State Street from $106.00 to $109.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 16th. Wells Fargo & Company increased their price target on State Street from $113.00 to $121.00 and gave the company an "overweight" rating in a report on Tuesday, July 8th. Truist Financial increased their target price on shares of State Street from $116.00 to $125.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. Cfra Research raised shares of State Street from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, July 15th. Finally, Evercore ISI lifted their target price on shares of State Street from $102.00 to $115.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 2nd. Eight investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $114.18.

Insider Buying and Selling

In other State Street news, EVP Michael L. Richards sold 990 shares of the firm's stock in a transaction 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 transaction, the executive vice president owned 41,332 shares of the company's stock, valued at approximately $4,517,174.28. This trade represents a 2.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.29% of the company's stock.

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.