Davis Selected Advisers Increases Position in State Street Corporation $STT

Key Points

• Davis Selected Advisers raised its stake in State Street by 38.5% in Q4, adding 39,988 shares to hold 143,773 shares worth about $18,548,000.
• State Street beat quarterly estimates with EPS of $2.84 vs. $2.64 expected and revenue of $3.80B vs. $3.59B (revenue +15.6% YoY), and paid a quarterly dividend of $0.84 ($3.36 annual, 2.2% yield).
• Institutional ownership is high at 87.44%, analysts rate the stock a "Moderate Buy" with an average target of $154, while insiders sold 28,711 shares (~$3.93M) over the past three months.

Davis Selected Advisers increased its stake in State Street Corporation (NYSE:STT - Free Report) by 38.5% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 143,773 shares of the asset manager's stock after acquiring an additional 39,988 shares during the period. Davis Selected Advisers owned about 0.05% of State Street worth $18,548,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Franklin Resources Inc. grew its position in State Street by 3.7% in the third quarter. Franklin Resources Inc. now owns 3,859,012 shares of the asset manager's stock worth $447,684,000 after acquiring an additional 137,049 shares in the last quarter. Nordea Investment Management AB grew its position in State Street by 15.4% in the fourth quarter. Nordea Investment Management AB now owns 2,829,271 shares of the asset manager's stock worth $367,041,000 after acquiring an additional 377,568 shares in the last quarter. Regents of The University of California purchased a new position in State Street in the third quarter worth $324,576,000. First Trust Advisors LP grew its position in State Street by 36.8% in the third quarter. First Trust Advisors LP now owns 2,747,646 shares of the asset manager's stock worth $318,754,000 after acquiring an additional 738,456 shares in the last quarter. Finally, Barclays PLC grew its position in State Street by 27.7% in the third quarter. Barclays PLC now owns 1,576,332 shares of the asset manager's stock worth $182,870,000 after acquiring an additional 342,344 shares in the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

State Street Stock Performance

State Street stock opened at $152.12 on Friday. The company has a quick ratio of 0.61, a current ratio of 0.57 and a debt-to-equity ratio of 1.04. The company has a market capitalization of $42.10 billion, a PE ratio of 15.43, a P/E/G ratio of 0.84 and a beta of 1.45. The firm has a fifty day simple moving average of $132.73 and a two-hundred day simple moving average of $127.18. State Street Corporation has a twelve month low of $89.19 and a twelve month high of $156.18.

State Street (NYSE:STT - Get Free Report) last posted its quarterly earnings results on Friday, April 17th. The asset manager reported $2.84 earnings per share for the quarter, topping the consensus estimate of $2.64 by $0.20. The business had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.59 billion. State Street had a net margin of 13.47% and a return on equity of 14.22%. The firm's revenue for the quarter was up 15.6% on a year-over-year basis. During the same period in the previous year, the firm posted $2.04 earnings per share. Research analysts expect that State Street Corporation will post 12.31 EPS for the current year.

State Street Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, April 13th. Shareholders of record on Wednesday, April 1st were paid a $0.84 dividend. The ex-dividend date of this dividend was Wednesday, April 1st. This represents a $3.36 annualized dividend and a yield of 2.2%. State Street's payout ratio is currently 34.08%.

Analysts Set New Price Targets

Several brokerages recently issued reports on STT. Citigroup began coverage on shares of State Street in a research report on Monday, February 23rd. They issued a "buy" rating and a $150.00 target price for the company. Barclays set a $165.00 target price on shares of State Street in a research report on Monday, April 20th. Weiss Ratings reiterated a "buy (b)" rating on shares of State Street in a research report on Monday, April 20th. Truist Financial upped their target price on shares of State Street from $136.00 to $150.00 and gave the stock a "hold" rating in a research report on Monday, April 20th. Finally, The Goldman Sachs Group boosted their price target on shares of State Street from $152.00 to $168.00 and gave the stock a "buy" rating in a research note on Monday, April 20th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, State Street currently has an average rating of "Moderate Buy" and an average target price of $154.00.

Insiders Place Their Bets

In other State Street news, EVP Michael L. Richards sold 3,000 shares of the business's 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 sale, the executive vice president directly owned 43,522 shares of the company's stock, valued at $6,697,600.58. The trade was a 6.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP John Plansky sold 16,100 shares of the company's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $124.32, for a total transaction of $2,001,552.00. Following the transaction, the executive vice president directly owned 56,162 shares of the company's stock, valued at approximately $6,982,059.84. This trade represents a 22.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 28,711 shares of company stock valued at $3,933,032 over the last three months. 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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