Hsbc Holdings PLC Trims Stock Position in State Street Corporation $STT

Key Points

• HSBC Holdings PLC cut its State Street stake by 12.1% in the fourth quarter, selling 103,568 shares and leaving it with 750,419 shares worth about $97 million.
• Insiders have also been selling shares: CEO Ronald P. O. Hanley and COO Mostapha Tahiri both reduced their holdings in recent transactions, and insiders sold 37,876 shares total over the last three months.
• Analysts remain generally upbeat on STT, with a consensus rating of “Moderate Buy” and an average price target of $166.84, while State Street also reported earnings and revenue that beat estimates in its latest quarter.

Hsbc Holdings PLC lessened its stake in State Street Corporation (NYSE:STT - Free Report) by 12.1% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 750,419 shares of the asset manager's stock after selling 103,568 shares during the period. Hsbc Holdings PLC owned 0.27% of State Street worth $97,003,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently made changes to their positions in STT. Regents of The University of California boosted its position in shares of State Street by 211.2% in the 4th 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 State Street in the fourth quarter valued at approximately $303,483,000. Pinebridge Investments LLC acquired a new stake in shares of State Street in the fourth quarter valued at approximately $178,705,000. Victory Capital Management Inc. boosted its holdings in shares of State Street by 30.8% in the fourth quarter. Victory Capital Management Inc. now owns 4,559,546 shares of the asset manager's stock valued at $588,227,000 after acquiring an additional 1,074,174 shares during the period. Finally, Two Sigma Investments LP grew its position in shares of State Street by 261.0% during the third quarter. Two Sigma Investments LP now owns 1,217,802 shares of the asset manager's stock worth $141,277,000 after acquiring an additional 880,507 shares during the last quarter. Hedge funds and other institutional investors own 87.44% of the company's stock.

Insiders Place Their Bets

In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total value of $2,260,808.55. Following the completion of the sale, the chief executive officer owned 255,512 shares of the company's stock, valued at approximately $39,693,789.20. This trade represents a 5.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Mostapha Tahiri sold 9,611 shares of the business's stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $152.93, for a total transaction of $1,469,810.23. Following the sale, the chief operating officer directly owned 64,642 shares in the company, valued at approximately $9,885,701.06. This represents a 12.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 37,876 shares of company stock valued at $5,866,583 in the last three months. 0.27% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts recently commented on STT shares. Weiss Ratings upgraded shares of State Street from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, May 28th. Bank of America raised shares of State Street from an "underperform" rating to a "neutral" rating and set a $143.00 price objective on the stock in a research report on Monday, April 6th. Barclays set a $165.00 price objective on shares of State Street in a research note on Monday, April 20th. Truist Financial upped their target price on shares of State Street from $150.00 to $176.00 and gave the company a "hold" rating in a report on Friday, June 26th. Finally, Keefe, Bruyette & Woods increased their target price on shares of State Street from $157.00 to $175.00 and gave the stock an "outperform" rating in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $166.84.

State Street Stock Down 0.1%

Shares of State Street stock opened at $170.57 on Friday. State Street Corporation has a one year low of $101.98 and a one year high of $175.46. The company has a market cap of $47.21 billion, a P/E ratio of 17.30, a PEG ratio of 0.92 and a beta of 1.42. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.57 and a current ratio of 0.57. The firm has a fifty day moving average of $159.83 and a two-hundred day moving average of $140.51.

State Street (NYSE:STT - Get Free Report) last announced its quarterly earnings data on Friday, April 17th. The asset manager reported $2.84 EPS for the quarter, beating analysts' consensus estimates of $2.64 by $0.20. State Street had a net margin of 13.47% and a return on equity of 14.22%. The firm had revenue of $3.80 billion during the quarter, compared to the consensus estimate of $3.59 billion. During the same quarter last year, the firm earned $2.04 earnings per share. The firm's revenue was up 15.6% compared to the same quarter last year. On average, analysts forecast that State Street Corporation will post 12.53 earnings per share for the current year.

State Street Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 13th. Stockholders of record on Wednesday, July 1st will be issued a $0.84 dividend. This represents a $3.36 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Wednesday, July 1st. State Street's dividend payout ratio (DPR) is currently 34.08%.

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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