State Street Corporation $STT Shares Acquired by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC increased its stake in State Street Corporation by 5.3%, owning 717,300 shares valued at approximately $64.06 million.
• State Street's recent earnings report showed an EPS of $2.53, exceeding estimates, with revenues of $3.47 billion up by 2.9% year-over-year.
• The company announced an increase in its quarterly dividend to $0.84, representing a 3.0% yield, alongside a payout ratio of 34.04%.

Hsbc Holdings PLC grew its stake in shares of State Street Corporation (NYSE:STT - Free Report) by 5.3% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 717,300 shares of the asset manager's stock after acquiring an additional 36,105 shares during the quarter. Hsbc Holdings PLC owned about 0.25% of State Street worth $64,057,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of STT. Eastern Bank increased its position in State Street by 6,967.4% during the 1st quarter. Eastern Bank now owns 2,989,452 shares of the asset manager's stock worth $267,646,000 after purchasing an additional 2,947,153 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in State Street by 236.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,309,130 shares of the asset manager's stock worth $226,642,000 after purchasing an additional 1,622,408 shares in the last quarter. Nuveen LLC acquired a new stake in State Street during the 1st quarter worth approximately $93,016,000. Azora Capital LP acquired a new stake in State Street during the 4th quarter worth approximately $80,294,000. Finally, Invesco Ltd. increased its position in State Street by 9.0% during the 1st quarter. Invesco Ltd. now owns 8,184,690 shares of the asset manager's stock worth $732,775,000 after purchasing an additional 674,120 shares in the last quarter. Institutional investors and hedge funds own 87.44% of the company's stock.

Insider Buying and Selling at State Street

In other news, EVP Michael L. Richards sold 990 shares of the firm's stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of $109.29, for a total transaction of $108,197.10. Following the completion of the sale, the executive vice president owned 41,332 shares of the company's stock, valued at approximately $4,517,174.28. This trade represents a 2.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.29% of the company's stock.

State Street Stock Up 2.7%

NYSE:STT traded up $3.0010 during trading hours on Friday, hitting $115.3610. The stock had a trading volume of 2,144,667 shares, compared to its average volume of 1,532,551. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 1.09. State Street Corporation has a 1-year low of $72.81 and a 1-year high of $115.65. The business has a 50 day simple moving average of $108.38 and a two-hundred day simple moving average of $97.46. The company has a market cap of $32.73 billion, a PE ratio of 12.92, a price-to-earnings-growth ratio of 1.13 and a beta of 1.48.

State Street (NYSE:STT - Get Free Report) last released its quarterly earnings results on Tuesday, July 15th. The asset manager reported $2.53 earnings per share for the quarter, topping analysts' consensus estimates of $2.36 by $0.17. State Street had a net margin of 12.59% and a return on equity of 12.96%. The business had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter last year, the company earned $2.15 earnings per share. The business's quarterly revenue was up 2.9% compared to the same quarter last year. Analysts predict that State Street Corporation will post 9.68 EPS for the current year.

State Street Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Wednesday, October 1st will be given a dividend of $0.84 per share. The ex-dividend date of this dividend is Wednesday, October 1st. This is an increase from State Street's previous quarterly dividend of $0.76. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. State Street's dividend payout ratio is 34.04%.

Analysts Set New Price Targets

A number of research firms recently issued reports on STT. Truist Financial increased their target price on shares of State Street from $116.00 to $125.00 and gave the stock a "buy" rating in a research report on Thursday, August 14th. Morgan Stanley increased their target price on shares of State Street from $110.00 to $114.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. The Goldman Sachs Group increased their target price on shares of State Street from $98.00 to $111.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Citigroup increased their price objective on shares of State Street from $100.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. Finally, Cfra Research raised shares of State Street from a "hold" rating to a "moderate buy" rating in a research report on Tuesday, July 15th. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $112.82.

About State Street

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody, accounting, regulatory reporting, investor, and performance and analytics; middle office products, such as IBOR, transaction management, loans, cash, derivatives and collateral, record keeping, and client reporting and investment analytics; finance leasing; foreign exchange, and brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.