iA Global Asset Management Inc. Invests $2.51 Million in State Street Corporation $STT

Key Points

• iA Global Asset Management disclosed a new first-quarter position in State Street, buying 19,865 shares valued at about $2.51 million.
• State Street recently reported better-than-expected quarterly results, with EPS of $2.84 versus $2.64 expected and revenue of $3.80 billion, up 15.6% year over year.
• The company also announced a quarterly dividend of $0.84 per share, implying an annualized yield of about 2.0%, while analysts currently hold a Moderate Buy consensus with an average price target of $166.84.

iA Global Asset Management Inc. acquired a new stake in State Street Corporation (NYSE:STT - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 19,865 shares of the asset manager's stock, valued at approximately $2,514,000.

A number of other hedge funds have also made changes to their positions in STT. Regents of The University of California boosted its stake in State Street by 211.2% during 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 in the last quarter. Morgan Stanley increased its position in shares of State Street by 9.0% during the 4th quarter. Morgan Stanley now owns 5,222,382 shares of the asset manager's stock valued at $673,740,000 after purchasing an additional 433,201 shares during the period. Victory Capital Management Inc. raised its stake in shares of State Street by 30.8% in the 4th quarter. Victory Capital Management Inc. now owns 4,559,546 shares of the asset manager's stock worth $588,227,000 after buying an additional 1,074,174 shares in the last quarter. Franklin Resources Inc. raised its stake in shares of State Street by 1.7% in the 4th quarter. Franklin Resources Inc. now owns 3,926,321 shares of the asset manager's stock worth $506,534,000 after buying an additional 67,309 shares in the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of State Street by 30.4% in the fourth quarter. First Trust Advisors LP now owns 3,582,977 shares of the asset manager's stock valued at $462,240,000 after buying an additional 835,331 shares during the period. Institutional investors and hedge funds own 87.44% of the company's stock.

Insider Buying and Selling

In other news, EVP Michael L. Richards sold 3,000 shares of State Street stock in a transaction that occurred 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 transaction, the executive vice president directly owned 43,522 shares of the company's stock, valued at $6,697,600.58. This trade represents a 6.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP W. Bradford Hu sold 9,212 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $155.35, for a total transaction of $1,431,084.20. Following the sale, the executive vice president owned 59,552 shares in the company, valued at $9,251,403.20. This represents a 13.40% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 37,876 shares of company stock worth $5,866,583. Company insiders own 0.27% of the company's stock.

State Street Stock Performance

STT opened at $170.57 on Friday. The firm has a market cap of $47.21 billion, a PE ratio of 17.30, a P/E/G ratio of 0.91 and a beta of 1.42. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.04. The business has a fifty day simple moving average of $159.46 and a 200-day simple moving average of $140.30. State Street Corporation has a fifty-two week low of $101.98 and a fifty-two week high of $175.46.

State Street (NYSE:STT - Get Free Report) last issued its earnings results on Friday, April 17th. The asset manager reported $2.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.64 by $0.20. State Street had a return on equity of 14.22% and a net margin of 13.47%.The business had revenue of $3.80 billion for the quarter, compared to analysts' expectations of $3.59 billion. During the same period in the previous year, the firm posted $2.04 EPS. The company's quarterly revenue was up 15.6% on a year-over-year basis. As a group, equities analysts predict that State Street Corporation will post 12.53 EPS for the current fiscal year.

State Street Dividend Announcement

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

Wall Street Analyst Weigh In

STT has been the subject of several research reports. Zacks Research cut State Street from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. Wells Fargo & Company boosted their price target on shares of State Street from $171.00 to $196.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 24th. Bank of America raised shares of State Street from an "underperform" rating to a "neutral" rating and set a $143.00 price target for the company in a report on Monday, April 6th. 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. Finally, JPMorgan Chase & Co. lifted their price objective on shares of State Street from $137.50 to $158.50 and gave the stock a "neutral" rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $166.84.

State Street 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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