Convergence Investment Partners LLC Raises Stock Holdings in State Street Corporation $STT

Key Points

• Convergence Investment Partners boosted its State Street stake by 162.3% in the first quarter, buying 26,100 additional shares to hold 42,185 shares valued at about $5.34 million.
• State Street reported better-than-expected quarterly results, with earnings per share of $3.65 and revenue of $4.05 billion, both topping analyst estimates and rising 23.3% from a year earlier.
• The company also raised its quarterly dividend to $0.92 per share from $0.84, while several analysts lifted price targets and the stock consensus remains a “Moderate Buy.”

Convergence Investment Partners LLC lifted its stake in State Street Corporation (NYSE:STT - Free Report) by 162.3% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 42,185 shares of the asset manager's stock after buying an additional 26,100 shares during the quarter. State Street comprises 0.9% of Convergence Investment Partners LLC's portfolio, making the stock its 26th biggest holding. Convergence Investment Partners LLC's holdings in State Street were worth $5,339,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Regents of The University of California increased its holdings in 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 acquiring an additional 5,908,370 shares in the last quarter. Norges Bank purchased a new position in State Street during the fourth quarter valued at approximately $303,483,000. Pinebridge Investments LLC purchased a new position in State Street during the fourth quarter valued at approximately $178,705,000. Victory Capital Management Inc. boosted its position in shares of State Street by 30.8% in the fourth quarter. Victory Capital Management Inc. now owns 4,559,546 shares of the asset manager's stock worth $588,227,000 after purchasing an additional 1,074,174 shares during the period. Finally, Two Sigma Investments LP boosted its position in shares of State Street by 261.0% in the third quarter. Two Sigma Investments LP now owns 1,217,802 shares of the asset manager's stock worth $141,277,000 after purchasing an additional 880,507 shares during the period. 87.44% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at State Street

In other State Street news, EVP Michael L. Richards sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $153.89, for a total transaction of $461,670.00. Following the completion of the transaction, the executive vice president owned 43,522 shares in the company, valued at $6,697,600.58. This trade represents a 6.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP W. Bradford Hu sold 9,212 shares of State Street stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total value of $1,431,084.20. Following the completion of the sale, the executive vice president directly owned 59,552 shares in the company, valued at approximately $9,251,403.20. The trade was a 13.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 37,876 shares of company stock worth $5,866,583. 0.27% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on STT. Bank of America increased their price objective on shares of State Street from $160.00 to $190.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 7th. Keefe, Bruyette & Woods upped their target price on shares of State Street from $195.00 to $215.00 and gave the stock an "outperform" rating in a report on Friday. The Goldman Sachs Group increased their price target on State Street from $168.00 to $194.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. Truist Financial reissued a "hold" rating and set a $191.00 price target (up from $176.00) on shares of State Street in a report on Friday. Finally, Argus boosted their price objective on State Street from $140.00 to $168.00 and gave the company a "buy" rating in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $184.72.

State Street Price Performance

STT stock opened at $182.31 on Tuesday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.57 and a current ratio of 0.59. The company's fifty day moving average price is $166.47 and its 200-day moving average price is $144.55. State Street Corporation has a one year low of $104.64 and a one year high of $192.51. The company has a market capitalization of $50.46 billion, a PE ratio of 16.08, a price-to-earnings-growth ratio of 0.90 and a beta of 1.42.

State Street (NYSE:STT - Get Free Report) last posted 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. The company had revenue of $4.05 billion during the quarter, compared to analysts' expectations of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. State Street's quarterly revenue was up 23.3% on a year-over-year basis. During the same period last year, the company posted $2.04 earnings per share. On average, equities analysts anticipate that State Street Corporation will post 13.35 EPS for the current fiscal year.

State Street Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.92 per share. The ex-dividend date is Thursday, October 1st. This is a positive change from State Street's previous quarterly dividend of $0.84. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. State Street's dividend payout ratio (DPR) is 29.63%.

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.

Want to see what other hedge funds are holding STT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for State Street Corporation (NYSE:STT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.