Mubadala Investment Co PJSC Acquires New Shares in State Street Corporation $STT

Key Points

• Mubadala Investment Co PJSC has acquired a new stake in State Street Corporation, purchasing 40,755 shares valued at approximately $3.65 million, making it the 25th largest holding in their portfolio.
• State Street recently reported improved earnings with an EPS of $2.53, exceeding analysts' expectations, alongside a noted increase in revenue compared to the previous year.
• The company has announced a quarterly dividend increase to $0.84, reflecting a positive trend in its financial performance, with a current dividend yield of 2.9%.

Mubadala Investment Co PJSC acquired a new stake in shares of State Street Corporation (NYSE:STT - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 40,755 shares of the asset manager's stock, valued at approximately $3,649,000. State Street comprises about 0.0% of Mubadala Investment Co PJSC's holdings, making the stock its 25th largest holding.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Invesco Ltd. boosted its position in State Street by 9.0% in the first 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 during the last quarter. Northern Trust Corp boosted its position in State Street by 2.8% in the first quarter. Northern Trust Corp now owns 4,264,161 shares of the asset manager's stock worth $381,770,000 after purchasing an additional 115,751 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of State Street by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 3,068,867 shares of the asset manager's stock worth $274,732,000 after buying an additional 14,011 shares during the period. Eastern Bank raised its stake in shares of State Street by 6,967.4% in the first quarter. Eastern Bank now owns 2,989,452 shares of the asset manager's stock worth $267,646,000 after buying an additional 2,947,153 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of State Street by 16.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 2,696,326 shares of the asset manager's stock worth $241,403,000 after buying an additional 387,196 shares during the period. 87.44% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

STT has been the topic of several recent research reports. Bank of America raised their price objective on State Street from $106.00 to $109.00 and gave the stock an "underperform" rating in a research note on Wednesday, July 16th. Morgan Stanley raised their price objective on State Street from $110.00 to $114.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 1st. Truist Financial raised their price objective on State Street from $116.00 to $125.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. Cfra Research raised State Street from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, July 15th. Finally, Citigroup lifted their target price on State Street from $100.00 to $115.00 and gave the company a "neutral" rating in a research note on Wednesday, July 2nd. Seven equities 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's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $112.82.

State Street Stock Performance

NYSE:STT opened at $115.02 on Friday. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.57 and a quick ratio of 0.57. State Street Corporation has a 1 year low of $72.81 and a 1 year high of $116.37. The stock's 50 day simple moving average is $110.06 and its two-hundred day simple moving average is $98.03. The company has a market cap of $32.63 billion, a price-to-earnings ratio of 12.88, a PEG ratio of 1.13 and a beta of 1.48.

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

State Street Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Wednesday, October 1st will be issued a $0.84 dividend. This is a positive change from State Street's previous quarterly dividend of $0.76. The ex-dividend date is Wednesday, October 1st. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. State Street's dividend payout ratio (DPR) is presently 34.04%.

Insider Activity at State Street

In other news, EVP Michael L. Richards sold 990 shares of State Street stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total value of $108,197.10. Following the completion of the transaction, the executive vice president owned 41,332 shares in the company, valued at approximately $4,517,174.28. The trade was a 2.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.29% of the company's stock.

State Street Company Profile

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.

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