Canada Pension Plan Investment Board Purchases New Position in State Street Corporation $STT

Key Points

• Canada Pension Plan Investment Board acquired 391,142 State Street shares worth approximately $66.3 million, while institutional investors collectively own 87.44% of the company.
• State Street reported strong quarterly results, with earnings of $3.65 per share and revenue of $4.05 billion, exceeding analyst estimates and marking 23.3% year-over-year revenue growth.
• The company raised its quarterly dividend from $0.84 to $0.92, equivalent to an annualized dividend of $3.68 and a 1.9% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $185.38.

Canada Pension Plan Investment Board acquired a new position in shares of State Street Corporation (NYSE:STT - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 391,142 shares of the asset manager's stock, valued at approximately $66,338,000. Canada Pension Plan Investment Board owned about 0.14% of State Street as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently made changes to their positions in STT. Legal & General Group Plc purchased a new stake in shares of State Street in the 2nd quarter valued at about $330,849,000. The Manufacturers Life Insurance Company purchased a new position in State Street during the 2nd quarter worth approximately $43,283,000. Kelly Lawrence W & Associates Inc. CA acquired a new position in State Street during the second quarter worth approximately $178,000. Jones Financial Companies Lllp acquired a new position in State Street during the second quarter worth approximately $1,229,000. Finally, Front Street Capital Management Inc. purchased a new stake in State Street in the second quarter valued at approximately $1,015,000. Hedge funds and other institutional investors own 87.44% of the company's stock.

State Street Trading Down 0.2%

Shares of STT stock opened at $193.26 on Friday. The business's 50 day moving average is $181.97 and its two-hundred day moving average is $155.68. State Street Corporation has a twelve month low of $104.64 and a twelve month high of $195.93. The company has a market capitalization of $53.09 billion, a P/E ratio of 17.04, a price-to-earnings-growth ratio of 0.80 and a beta of 1.41. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.04.

State Street (NYSE:STT - Get Free Report) last released its earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.34 by $0.31. State Street had a return on equity of 15.26% and a net margin of 15.02%.The business had revenue of $4.05 billion for the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the previous year, the company posted $2.04 earnings per share. The company's revenue for the quarter was up 23.3% compared to the same quarter last year. Equities analysts forecast that State Street Corporation will post 13.75 EPS for the current year.

State Street Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be paid a $0.92 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $3.68 annualized dividend and a yield of 1.9%. This is an increase from State Street's previous quarterly dividend of $0.84. State Street's dividend payout ratio is presently 29.63%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Wells Fargo & Company increased their price objective on State Street from $196.00 to $215.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Royal Bank Of Canada lifted their target price on shares of State Street from $155.00 to $196.00 and gave the company a "sector perform" rating in a report on Friday, July 17th. Weiss Ratings reiterated a "buy (b+)" rating on shares of State Street in a research report on Tuesday. The Goldman Sachs Group increased their price target on shares of State Street from $168.00 to $194.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. Finally, UBS Group set a $176.00 price objective on shares of State Street in a research report on Friday, June 26th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $185.38.

Insider Buying and Selling at State Street

In other State Street news, EVP W. Bradford Hu sold 9,758 shares of the company's 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 completion of the transaction, the executive vice president owned 49,794 shares in the company, valued at approximately $9,187,988.88. This represents a 16.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the completion of the sale, the executive vice president owned 41,827 shares of the company's stock, valued at $6,781,829.78. This trade represents a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 25,811 shares of company stock valued at $4,723,982. 0.27% of the stock is owned by company insiders.

State Street Profile

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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