Edgestream Partners L.P. Buys 38,904 Shares of State Street Corporation $STT

Key Points

• Edgestream Partners increased its State Street stake by 51.5% in the first quarter, buying 38,904 additional shares to own 114,374 shares valued at approximately $14.5 million.
• Institutional investors and hedge funds collectively own 87.44% of State Street, with several other funds also raising their positions during the quarter.
• State Street reported stronger-than-expected quarterly results, with adjusted EPS of $3.65 and revenue of $4.05 billion, while raising its quarterly dividend to $0.92 per share. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $184.72.

Edgestream Partners L.P. raised its stake in State Street Corporation (NYSE:STT - Free Report) by 51.5% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 114,374 shares of the asset manager's stock after buying an additional 38,904 shares during the quarter. State Street makes up about 0.5% of Edgestream Partners L.P.'s investment portfolio, making the stock its 8th largest holding. Edgestream Partners L.P.'s holdings in State Street were worth $14,475,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Brighton Jones LLC acquired a new position in State Street during the 4th quarter valued at about $296,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of State Street by 2.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,223 shares of the asset manager's stock worth $2,885,000 after buying an additional 918 shares during the period. NewEdge Advisors LLC grew its holdings in State Street by 105.2% in the 1st quarter. NewEdge Advisors LLC now owns 10,193 shares of the asset manager's stock worth $913,000 after buying an additional 5,226 shares in the last quarter. Empowered Funds LLC increased its position in State Street by 220.1% in the 1st quarter. Empowered Funds LLC now owns 23,263 shares of the asset manager's stock valued at $2,065,000 after acquiring an additional 15,996 shares during the period. Finally, Woodline Partners LP raised its stake in State Street by 38.4% during the 1st quarter. Woodline Partners LP now owns 24,372 shares of the asset manager's stock valued at $2,182,000 after acquiring an additional 6,767 shares in the last quarter. Institutional investors and hedge funds own 87.44% of the company's stock.

State Street News Roundup

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

• Positive Sentiment: Latin American expansion: State Street plans to acquire Santander CACEIS’s Latin American Securities Services joint venture, expanding its custody and securities-services operations across key regional markets. The transaction could add scale, clients and long-term revenue opportunities, although financial terms and closing conditions were not disclosed. State Street to Expand Latam Presence With Santander CACEIS JV Buyout
• Positive Sentiment: Dividend increase: State Street raised its quarterly dividend to $0.92 per share from $0.84, implying an annualized payout of $3.68 and a yield of approximately 2%. The increase signals confidence in capital generation and may support income-oriented demand for the stock. State Street EVP Sells Stock
• Neutral Sentiment: Strong earnings backdrop: State Street’s latest quarterly report showed adjusted earnings of $3.65 per share and revenue of $4.05 billion, exceeding estimates, with revenue up 23.3% year over year. Analysts maintain a generally positive outlook, but much of that strength may already be reflected in the elevated share price.
• Neutral Sentiment: Relative performance: State Street underperformed its competitors in Tuesday trading, indicating weaker near-term sentiment even as the stock remains well above its 50-day and 200-day moving averages. State Street Corp. stock underperforms Tuesday when compared to competitors
• Negative Sentiment: Insider selling: CEO Ronald O. Hanley sold about $2.68 million of shares, while EVP W. Bradford Hu sold approximately $1.80 million. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing the negative signal, but the sales could still weigh modestly on sentiment. State Street EVP Sells $1,800,546.16 in Stock

Insider Transactions at State Street

In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the company's stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 240,959 shares of the company's stock, valued at approximately $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the company's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $162.14, for a total transaction of $243,210.00. Following the sale, the executive vice president directly owned 41,827 shares of the company's stock, valued at $6,781,829.78. This represents a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 49,576 shares of company stock valued at $8,415,875 over the last three months. Company insiders own 0.27% of the company's stock.

State Street Trading Down 3.6%

State Street stock opened at $175.94 on Thursday. 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 firm has a market cap of $48.69 billion, a price-to-earnings ratio of 15.51, a price-to-earnings-growth ratio of 0.76 and a beta of 1.42. State Street Corporation has a 1 year low of $104.64 and a 1 year high of $192.51. The firm's 50 day moving average price is $170.76 and its two-hundred day moving average price is $147.10.

State Street (NYSE:STT - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) 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 analysts' expectations of $3.88 billion. During the same quarter in the prior year, the company earned $2.04 earnings per share. The firm's revenue was up 23.3% on a year-over-year basis. On average, research analysts predict that State Street Corporation will post 13.68 EPS for the current fiscal year.

State Street Increases Dividend

The business also recently announced 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. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. This is a boost from State Street's previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. State Street's payout ratio is presently 29.63%.

Analysts Set New Price Targets

A number of brokerages have recently commented on STT. Keefe, Bruyette & Woods raised their price target on State Street from $195.00 to $215.00 and gave the company an "outperform" rating in a report on Friday, July 17th. Barclays raised their target price on shares of State Street from $165.00 to $200.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. The Goldman Sachs Group upped their price target on shares of State Street from $168.00 to $194.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. Zacks Research upgraded shares of State Street from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st. Finally, Weiss Ratings raised State Street from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, May 28th. Two research 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, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $184.72.

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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