Newport Trust Company LLC Trims Stock Position in State Street Corporation $STT

Key Points

• Newport Trust Company LLC cut its State Street stake by 3.1% in the fourth quarter, selling 46,406 shares and ending with 1,459,282 shares valued at about $188.3 million.
• State Street posted stronger-than-expected quarterly results, with EPS of $2.84 and revenue of $3.80 billion, both beating analyst estimates and revenue rising 15.6% year over year.
• The company also announced a quarterly dividend of $0.84 per share, payable July 13, which annualizes to $3.36 per share for a 2.2% yield.

Newport Trust Company LLC lessened its stake in shares of State Street Corporation (NYSE:STT - Free Report) by 3.1% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,459,282 shares of the asset manager's stock after selling 46,406 shares during the quarter. Newport Trust Company LLC owned about 0.52% of State Street worth $188,262,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. JPL Wealth Management LLC purchased a new stake in shares of State Street during the 3rd quarter worth approximately $29,000. Board of the Pension Protection Fund purchased a new stake in shares of State Street during the 4th quarter worth approximately $39,000. Flagship Wealth Advisors LLC purchased a new stake in shares of State Street during the 3rd quarter worth approximately $35,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of State Street during the 3rd quarter worth approximately $35,000. Finally, Ameriflex Group Inc. lifted its position in shares of State Street by 102.5% during the 3rd quarter. Ameriflex Group Inc. now owns 318 shares of the asset manager's stock worth $37,000 after buying an additional 161 shares during the last quarter. Hedge funds and other institutional investors own 87.44% of the company's stock.

State Street Stock Performance

Shares of STT opened at $153.55 on Friday. 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 stock has a market capitalization of $42.50 billion, a P/E ratio of 15.57, a P/E/G ratio of 0.84 and a beta of 1.45. The company's fifty day moving average is $139.21 and its two-hundred day moving average is $130.67. State Street Corporation has a 1 year low of $94.19 and a 1 year high of $156.18.

State Street (NYSE:STT - Get Free Report) last announced its quarterly earnings data on Friday, April 17th. The asset manager reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.64 by $0.20. The company had revenue of $3.80 billion for the quarter, compared to analysts' expectations of $3.59 billion. State Street had a net margin of 13.47% and a return on equity of 14.22%. State Street's revenue was up 15.6% compared to the same quarter last year. During the same period in the previous year, the company posted $2.04 EPS. On average, sell-side analysts predict 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. Stockholders of record on Wednesday, July 1st will be paid a dividend of $0.84 per share. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.2%. State Street's dividend payout ratio is 34.08%.

Insider Transactions at State Street

In other news, EVP John Plansky sold 16,100 shares of the company's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $124.32, for a total transaction of $2,001,552.00. Following the transaction, the executive vice president directly owned 56,162 shares of the company's stock, valued at $6,982,059.84. This represents a 22.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Mostapha Tahiri sold 9,611 shares of the company's stock in a transaction on 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 transaction, the chief operating officer directly owned 64,642 shares in the company, valued at approximately $9,885,701.06. This trade represents a 12.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 28,711 shares of company stock valued at $3,933,032 in the last ninety days. 0.27% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on STT shares. Barclays set a $165.00 target price on shares of State Street in a report on Monday, April 20th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of State Street in a report on Monday, April 20th. JPMorgan Chase & Co. lifted their target price on shares of State Street from $137.50 to $158.50 and gave the company a "neutral" rating in a report on Monday, May 11th. The Goldman Sachs Group lifted their target price on shares of State Street from $152.00 to $168.00 and gave the company a "buy" rating in a report on Monday, April 20th. Finally, Bank of America raised shares of State Street from an "underperform" rating to a "neutral" rating and set a $143.00 target price on the stock in a report on Monday, April 6th. 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.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $155.77.

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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