CIBC Asset Management Inc Acquires 24,431 Shares of State Street Corporation $STT

Key Points

• CIBC Asset Management Inc. increased its stake in State Street by 51.3% in the fourth quarter, buying 24,431 additional shares and bringing its total holding to 72,068 shares worth about $9.3 million.
• State Street reported strong quarterly results, with earnings of $2.84 per share versus expectations of $2.64 and revenue of $3.80 billion, topping estimates and rising 15.6% year over year.
• The company also announced a quarterly dividend of $0.84 per share, implying an annualized yield of about 2.1%, while analysts currently rate the stock a Moderate Buy with an average price target of $158.57.

CIBC Asset Management Inc boosted its holdings in State Street Corporation (NYSE:STT - Free Report) by 51.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 72,068 shares of the asset manager's stock after buying an additional 24,431 shares during the period. CIBC Asset Management Inc's holdings in State Street were worth $9,297,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. JPL Wealth Management LLC bought a new stake in shares of State Street during the third quarter valued at approximately $29,000. Measured Wealth Private Client Group LLC acquired a new stake in State Street in the 3rd quarter valued at $35,000. Ameriflex Group Inc. boosted its stake in State Street by 102.5% in the 3rd quarter. Ameriflex Group Inc. now owns 318 shares of the asset manager's stock valued at $37,000 after buying an additional 161 shares in the last quarter. Board of the Pension Protection Fund acquired a new stake in State Street in the 4th quarter valued at $39,000. Finally, Stance Capital LLC acquired a new stake in State Street in the 3rd quarter valued at $44,000. 87.44% of the stock is owned by institutional investors.

State Street Stock Performance

STT opened at $161.73 on Friday. State Street Corporation has a 12-month low of $95.67 and a 12-month high of $163.95. The stock has a market cap of $44.76 billion, a price-to-earnings ratio of 16.40, a PEG ratio of 0.89 and a beta of 1.43. The business has a 50 day moving average of $146.97 and a 200-day moving average of $133.67. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.04.

State Street (NYSE:STT - Get Free Report) last released its quarterly earnings data on Friday, April 17th. The asset manager reported $2.84 earnings per share (EPS) for the quarter, beating 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 company had revenue of $3.80 billion during the quarter, compared to analysts' expectations of $3.59 billion. During the same period last year, the firm posted $2.04 earnings per share. The business's revenue was up 15.6% on a year-over-year basis. On average, equities research analysts expect that State Street Corporation will post 12.35 earnings per share for the current year.

State Street Announces Dividend

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

Insider Buying and Selling at State Street

In other State Street news, EVP John Plansky sold 16,100 shares of State Street stock in a transaction on 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 completion of the transaction, the executive vice president directly owned 56,162 shares of the company's stock, valued at $6,982,059.84. The trade was a 22.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Michael L. Richards sold 3,000 shares of State Street stock in a transaction on Wednesday, April 22nd. The shares were sold at an average price of $153.89, for a total value of $461,670.00. Following the completion of the transaction, the executive vice president directly owned 43,522 shares of the company's stock, valued at $6,697,600.58. This represents a 6.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 52,476 shares of company stock worth $7,624,925 in the last 90 days. Company insiders own 0.27% of the company's stock.

Analyst Ratings Changes

Several brokerages recently commented on STT. JPMorgan Chase & Co. boosted their price target on State Street from $137.50 to $158.50 and gave the company a "neutral" rating in a research note on Monday, May 11th. Morgan Stanley boosted their price target on State Street from $155.00 to $166.00 and gave the company an "overweight" rating in a research note on Monday, April 20th. Weiss Ratings raised State Street from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, May 28th. Citigroup boosted their price target on State Street from $150.00 to $172.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Finally, The Goldman Sachs Group boosted their price target on State Street from $152.00 to $168.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $158.57.

Key Headlines Impacting State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: State Street expanded its investment servicing relationship with Principal Financial Group, which suggests continued demand for its institutional servicing and custody business. State Street Expands Investment Servicing Relationship with Principal Financial Group®
• Positive Sentiment: Analysts continue to rate State Street as a “Moderate Buy,” reinforcing a constructive view on the company’s earnings outlook and valuation. State Street Corporation NYSE: STT Receives Average Rating of "Moderate Buy" from Analysts
• Neutral Sentiment: State Street filed multiple notices showing it ceased to be a substantial holder in several Australian companies, including SRG Global, Super Retail Group, Kingsgate Consolidated, Polynovo, Centuria Capital, Emerald Resources, Amplitude Energy, Bega Cheese, and Service Stream. These are portfolio repositioning updates and do not directly change State Street’s core earnings picture.
• Neutral Sentiment: Investor commentary around the rejected independent-chair proposal and relative stock underperformance highlights ongoing governance and sentiment questions, but these items are more of a market narrative than a fundamental catalyst. Did State Street’s Rejected Independent-Chair Proposal Reframe Its Governance Trade-offs for Investors in STT?

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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