Davis Asset Management L.P. Acquires New Position in State Street Corporation $STT

Key Points

• Davis Asset Management acquired 76,000 shares of State Street in the second quarter, valued at approximately $12.9 million. Institutional investors collectively own 87.44% of the company.
• State Street reported quarterly earnings of $3.65 per share and revenue of $4.05 billion, beating analyst expectations, while revenue increased 23.3% year over year.
• Analyst sentiment is positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $185.38. State Street also raised its quarterly dividend to $0.92 per share, representing a 2.0% yield.

Davis Asset Management L.P. acquired a new stake in shares of State Street Corporation (NYSE:STT - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 76,000 shares of the asset manager's stock, valued at approximately $12,890,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of State Street in the second quarter worth about $4,139,389,000. Regents of The University of California raised its position in shares of State Street by 211.2% in the fourth quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager's stock valued at $1,123,186,000 after purchasing an additional 5,908,370 shares during the period. Norges Bank purchased a new stake in shares of State Street during the 4th quarter valued at approximately $303,483,000. Bank of New York Mellon Corp purchased a new stake in shares of State Street during the 2nd quarter valued at approximately $301,393,000. Finally, Pinebridge Investments LLC bought a new position in State Street in the 4th quarter worth approximately $178,705,000. Institutional investors own 87.44% of the company's stock.

Analyst Ratings Changes

A number of research firms recently weighed in on STT. Bank of America lifted their price objective on shares of State Street from $160.00 to $190.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Citigroup increased their target price on State Street from $193.00 to $210.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Zacks Research raised State Street from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 21st. Truist Financial reiterated a "hold" rating and issued a $191.00 price target (up from $176.00) on shares of State Street in a research report on Friday, July 17th. Finally, Keefe, Bruyette & Woods boosted their price objective on State Street from $195.00 to $215.00 and gave the company an "outperform" rating in a research note on Friday, July 17th. 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 stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $185.38.

State Street Price Performance

Shares of NYSE:STT opened at $187.22 on Friday. The company has a 50 day moving average of $180.11 and a 200 day moving average of $153.79. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.04. The stock has a market cap of $51.43 billion, a P/E ratio of 16.51, a P/E/G ratio of 0.77 and a beta of 1.41. State Street Corporation has a 12 month low of $104.64 and a 12 month high of $195.18.

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 (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The business had revenue of $4.05 billion for the quarter, compared to analysts' expectations of $3.88 billion. During the same period in the prior year, the company posted $2.04 EPS. The business's revenue for the quarter was up 23.3% compared to the same quarter last year. As a group, sell-side analysts forecast that State Street Corporation will post 13.75 EPS for the current fiscal year.

State Street Increases Dividend

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

Insider Activity at State Street

In other State Street news, EVP Michael L. Richards sold 1,500 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total value of $243,210.00. Following 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP W. Bradford Hu sold 9,758 shares of the firm's stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $184.52, for a total value of $1,800,546.16. Following the completion of the sale, the executive vice president directly owned 49,794 shares in the company, valued at approximately $9,187,988.88. The trade was a 16.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 49,576 shares of company stock valued at $8,415,875. Company insiders own 0.27% of the company's stock.

State Street Company 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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