Compass Financial Management LLC Makes New $1.42 Million Investment in State Street Corporation $STT

Key Points

• Compass Financial Management purchased 8,245 State Street shares worth approximately $1.42 million during the second quarter. 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; revenue increased 23.3% year over year.
• The company raised its quarterly dividend to $0.92 per share, or $3.68 annualized, producing a 1.9% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $185.38.

Compass Financial Management LLC bought a new position in State Street Corporation (NYSE:STT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 8,245 shares of the asset manager's stock, valued at approximately $1,424,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. BlackRock Inc. bought a new position in State Street in the 2nd quarter valued at approximately $4,139,389,000. Regents of The University of California increased its holdings in shares of State Street by 211.2% in the 4th quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager's stock worth $1,123,186,000 after purchasing an additional 5,908,370 shares in the last quarter. Norges Bank bought a new stake in shares of State Street in the 4th quarter worth $303,483,000. Legal & General Group Plc purchased a new position in shares of State Street in the second quarter worth $330,849,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of State Street in the second quarter worth $301,393,000. Institutional investors own 87.44% of the company's stock.

State Street Trading Up 0.2%

Shares of STT stock opened at $194.41 on Friday. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.59 and a quick ratio of 0.59. The company has a market cap of $53.40 billion, a price-to-earnings ratio of 17.14, a PEG ratio of 0.92 and a beta of 1.41. State Street Corporation has a 1 year low of $104.64 and a 1 year high of $195.93. The firm has a fifty day moving average price of $184.53 and a 200-day moving average price of $158.08.

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 for the quarter, beating the consensus estimate of $3.34 by $0.31. State Street had a return on equity of 15.26% and a net margin of 15.02%.The company had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $3.88 billion. During the same period in the previous year, the business earned $2.04 earnings per share. State Street's quarterly revenue was up 23.3% compared to the same quarter last year. As a group, equities analysts predict that State Street Corporation will post 13.75 earnings per share for the current year.

State Street Increases Dividend

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

Insider Activity

In other State Street news, EVP W. Hu sold 9,758 shares of the firm's stock in a transaction that occurred 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 sale, the executive vice president owned 49,794 shares in the company, valued at approximately $9,187,988.88. This trade represents a 16.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the transaction, the chief executive officer directly owned 240,959 shares in the company, valued at $44,377,419.03. This represents a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 25,811 shares of company stock valued at $4,723,982 in the last ninety days. Corporate insiders own 0.27% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Royal Bank Of Canada increased their price objective on State Street from $155.00 to $196.00 and gave the company a "sector perform" rating in a research report on Friday, July 17th. Keefe, Bruyette & Woods boosted their target price on State Street from $195.00 to $215.00 and gave the stock an "outperform" rating in a research report on Friday, July 17th. The Goldman Sachs Group upped their target price on shares of State Street from $168.00 to $194.00 and gave the company a "buy" rating in a research note on Tuesday, June 30th. Truist Financial reaffirmed a "hold" rating and set a $191.00 price target (up from $176.00) on shares of State Street in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. lifted their price target on shares of State Street from $176.50 to $187.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $185.38.

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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