LSV Asset Management Sells 243,775 Shares of State Street Corporation $STT

Key Points

• LSV Asset Management reduced its State Street stake by 5.5% in the fourth quarter, selling 243,775 shares. Even after the sale, it still held 4.23 million shares worth about $545.2 million, making STT its 9th-largest position.
• State Street reported strong quarterly results, with EPS of $2.84 and revenue of $3.80 billion, both ahead of analyst expectations. Revenue rose 15.6% year over year, and the company’s return on equity was 14.22%.
• The company also announced a quarterly dividend of $0.84 per share, equal to a $3.36 annualized payout and a 2.2% yield. Analyst sentiment remains positive overall, with a consensus rating of Moderate Buy and an average price target of $155.77.

LSV Asset Management cut its holdings in State Street Corporation (NYSE:STT - Free Report) by 5.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,226,041 shares of the asset manager's stock after selling 243,775 shares during the period. State Street comprises about 1.2% of LSV Asset Management's holdings, making the stock its 9th largest position. LSV Asset Management owned 1.51% of State Street worth $545,202,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. Franklin Resources Inc. raised its stake in State Street by 3.7% in the third quarter. Franklin Resources Inc. now owns 3,859,012 shares of the asset manager's stock valued at $447,684,000 after buying an additional 137,049 shares in the last quarter. Nordea Investment Management AB raised its stake in State Street by 15.4% in the fourth quarter. Nordea Investment Management AB now owns 2,829,271 shares of the asset manager's stock valued at $367,041,000 after buying an additional 377,568 shares in the last quarter. Regents of The University of California acquired a new stake in State Street in the third quarter valued at $324,576,000. First Trust Advisors LP grew its holdings in shares of State Street by 36.8% during the third quarter. First Trust Advisors LP now owns 2,747,646 shares of the asset manager's stock worth $318,754,000 after purchasing an additional 738,456 shares during the last quarter. Finally, Barclays PLC grew its holdings in shares of State Street by 27.7% during the third quarter. Barclays PLC now owns 1,576,332 shares of the asset manager's stock worth $182,870,000 after purchasing an additional 342,344 shares during the last quarter. 87.44% of the stock is currently owned by institutional investors and hedge funds.

State Street Stock Performance

NYSE STT opened at $153.96 on Friday. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.04. State Street Corporation has a 52-week low of $94.19 and a 52-week high of $156.18. The business's 50-day moving average price is $139.76 and its 200 day moving average price is $130.83. The firm has a market cap of $42.61 billion, a P/E ratio of 15.61, a P/E/G ratio of 0.84 and a beta of 1.45.

State Street (NYSE:STT - Get Free Report) last released its quarterly 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. The firm had revenue of $3.80 billion for the quarter, compared to analyst estimates of $3.59 billion. State Street had a return on equity of 14.22% and a net margin of 13.47%.The business's revenue was up 15.6% on a year-over-year basis. During the same quarter last year, the company posted $2.04 earnings per share. On average, equities research analysts expect that State Street Corporation will post 12.35 earnings per share for the current year.

State Street Announces Dividend

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 issued a dividend of $0.84 per share. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $3.36 annualized dividend and a dividend yield of 2.2%. State Street's dividend payout ratio (DPR) is currently 34.08%.

Key Stories Impacting State Street

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

• Positive Sentiment: State Street announced a quarterly dividend of $0.84 per share, reinforcing its income profile and signaling management confidence in cash generation. The payout supports investor demand for the stock. Article: State Street Corporation Declares Dividends on its Common Stock and Non-Cumulative Perpetual Preferred Stock Series “G,” “I,” “J,” and “K”
• Positive Sentiment: The company opened a new Manila office to expand global operations, which suggests continued investment in growth, efficiency, and client servicing across international markets. Article: State Street opens new Manila office to expand global operations
• Positive Sentiment: State Street also expanded its stake in Strive Asset Management, a move that may be viewed as a constructive investment decision and a sign of active portfolio positioning. Article: State Street Expands Strive Asset Management (ASST) Holdings by 770% in $17.7M Investment
• Neutral Sentiment: Several disclosures showed State Street entities reducing or ceasing substantial holdings in Australian companies such as Service Stream, Viva Energy, Collins Foods, Elsight, Fortescue, HMC Capital, and PWR Holdings. These are routine portfolio updates and are unlikely to materially affect State Street’s overall outlook. Article: State Street Entities Cease to Be Substantial Holders in Service Stream

Insider Buying and Selling

In related news, EVP John Plansky sold 16,100 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $124.32, for a total transaction of $2,001,552.00. Following the completion of the sale, the executive vice president directly owned 56,162 shares of the company's stock, valued at $6,982,059.84. This trade represents a 22.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Michael L. Richards sold 3,000 shares of the stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $153.89, for a total value of $461,670.00. Following the sale, the executive vice president directly owned 43,522 shares of the company's stock, valued at approximately $6,697,600.58. This represents a 6.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,711 shares of company stock valued at $3,933,032 over the last three months. 0.27% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several brokerages have issued reports on STT. Zacks Research raised State Street from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 21st. Argus raised their price objective on State Street from $140.00 to $168.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Royal Bank Of Canada raised their price objective on State Street from $135.00 to $155.00 and gave the stock a "sector perform" rating in a report on Monday, April 20th. Citigroup raised their price objective on State Street from $150.00 to $172.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of State Street in a report on Monday, April 20th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, State Street currently has a consensus rating of "Moderate Buy" and an average price target of $155.77.

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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