Hsbc Holdings PLC Increases Stock Holdings in State Street Corporation $STT

Key Points

• Hsbc Holdings PLC increased its State Street stake by 28.3% in the second quarter, owning 1.19 million shares valued at approximately $201.6 million. Institutional investors collectively hold 87.44% of State Street’s stock.
• State Street reported stronger-than-expected quarterly results, with earnings of $3.65 per share and revenue of $4.05 billion, up 23.3% year over year. The company also raised its quarterly dividend to $0.92 per share, implying a 1.9% annual yield.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus and recent price targets ranging from $191 to $215, although the CEO and an executive vice president sold shares under pre-arranged trading plans.

Hsbc Holdings PLC increased its stake in State Street Corporation (NYSE:STT - Free Report) by 28.3% in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 1,188,087 shares of the asset manager's stock after acquiring an additional 261,926 shares during the quarter. Hsbc Holdings PLC owned approximately 0.43% of State Street worth $201,634,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. Wellington Management Group LLP increased its position in shares of State Street by 158.6% during the second quarter. Wellington Management Group LLP now owns 1,766,901 shares of the asset manager's stock worth $299,666,000 after purchasing an additional 1,083,645 shares in the last quarter. Kingsview Wealth Management LLC acquired a new stake in State Street during the second quarter worth about $1,974,000. Beacon Pointe Advisors LLC acquired a new stake in shares of State Street during the 2nd quarter worth approximately $1,301,000. Livforsakringsbolaget Skandia Omsesidigt purchased a new stake in State Street in the second quarter valued at $361,000. Finally, Strait & Sound Wealth Management LLC purchased a new stake in State Street in the 2nd quarter valued at about $205,000. Institutional investors and hedge funds own 87.44% of the company's stock.

Insider Activity

In related news, CEO Hanley Ronald P. O sold 14,553 shares of the company's stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total value of $2,680,226.01. Following the sale, the chief executive officer owned 240,959 shares of the company's stock, valued at approximately $44,377,419.03. This represents a 5.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of the company's stock in a transaction on 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 owned 49,794 shares in the company, valued at $9,187,988.88. This represents a 16.39% decrease in their ownership of the stock. 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. 0.27% of the stock is owned by insiders.

State Street Stock Up 0.1%

STT opened at $194.41 on Monday. State Street Corporation has a 12 month low of $104.64 and a 12 month high of $195.93. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.59 and a quick ratio of 0.59. The business has a 50 day simple moving average of $184.53 and a 200-day simple moving average of $158.29. The stock has a market capitalization of $53.40 billion, a P/E ratio of 17.14, a P/E/G ratio of 0.92 and a beta of 1.41.

State Street (NYSE:STT - Get Free Report) last issued its earnings results on Thursday, July 16th. The asset manager reported $3.65 EPS for the quarter, topping the consensus estimate of $3.34 by $0.31. The company had revenue of $4.05 billion for the quarter, compared to analyst estimates of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The business's revenue was up 23.3% on a year-over-year basis. During the same period in the previous year, the firm earned $2.04 EPS. On average, equities analysts anticipate that State Street Corporation will post 13.75 earnings per share 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. Investors of record on Thursday, October 1st will be issued a dividend of $0.92 per share. This is a boost from State Street's previous quarterly dividend of $0.84. This represents a $3.68 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, October 1st. State Street's payout ratio is presently 29.63%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Morgan Stanley boosted their target price on State Street from $183.00 to $195.00 and gave the company an "overweight" rating in a research 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 report on Friday, July 17th. Citigroup raised their price target on State Street from $193.00 to $210.00 and gave the company a "buy" rating in a research note on Friday, July 17th. Truist Financial restated a "hold" rating and set a $191.00 price objective (up from $176.00) on shares of State Street in a research report on Friday, July 17th. Finally, Wells Fargo & Company boosted their target price on State Street from $196.00 to $215.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $185.38.

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.

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