Norges Bank Takes Position in State Street Corporation $STT

Key Points

• Norges Bank disclosed a new fourth-quarter stake in State Street, buying 2,352,399 shares valued at about $303.5 million, which gave it roughly 0.84% ownership of the company.
• State Street reported a strong quarterly beat, posting $2.84 EPS versus the $2.64 consensus and $3.80 billion in revenue, up 15.6% year over year. Analysts now expect the company to generate 12.35 EPS for the full year.
• The company also announced a $0.84 quarterly dividend payable July 13, implying an annualized dividend of $3.36 and a yield of about 2.1%. Meanwhile, insiders sold shares in pre-arranged trades, including the CEO and an EVP, and analysts currently rate the stock a Moderate Buy with a consensus target price of $158.57.

Norges Bank acquired a new stake in State Street Corporation (NYSE:STT - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 2,352,399 shares of the asset manager's stock, valued at approximately $303,483,000. Norges Bank owned about 0.84% of State Street at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the stock. JPL Wealth Management LLC bought a new stake in shares of State Street during the 3rd quarter worth approximately $29,000. Board of the Pension Protection Fund bought a new stake in State Street during the 4th quarter valued at $39,000. Measured Wealth Private Client Group LLC bought a new stake in State Street during the 3rd quarter valued at $35,000. Ameriflex Group Inc. raised its position in State Street by 102.5% during the 3rd quarter. Ameriflex Group Inc. now owns 318 shares of the asset manager's stock valued at $37,000 after purchasing an additional 161 shares in the last quarter. Finally, Stance Capital LLC bought a new stake in State Street during the 3rd quarter valued at $44,000. 87.44% of the stock is owned by institutional investors.

State Street Stock Up 2.7%

Shares of STT opened at $159.79 on Tuesday. The company has a market capitalization of $44.22 billion, a price-to-earnings ratio of 16.21, a PEG ratio of 0.85 and a beta of 1.45. The stock's 50-day moving average price is $144.07 and its 200-day moving average price is $132.59. 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 $94.72 and a 52 week high of $160.08.

State Street (NYSE:STT - Get Free Report) last issued 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. State Street had a return on equity of 14.22% and a net margin of 13.47%.The company had revenue of $3.80 billion for the quarter, compared to the consensus estimate of $3.59 billion. During the same quarter in the prior year, the business posted $2.04 earnings per share. State Street's revenue for the quarter was up 15.6% on a year-over-year basis. On average, sell-side analysts predict that State Street Corporation will post 12.35 EPS for the current year.

State Street Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st will be given a $0.84 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $3.36 dividend on an annualized basis and a yield of 2.1%. State Street's payout ratio is currently 34.08%.

Insider Buying and Selling

In other State Street news, EVP W. Bradford Hu sold 9,212 shares of State Street stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total transaction of $1,431,084.20. Following the completion of the sale, the executive vice president directly owned 59,552 shares of the company's stock, valued at $9,251,403.20. The trade was a 13.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction dated 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 sale, the chief executive officer directly owned 255,512 shares of the company's stock, valued at $39,693,789.20. This trade represents a 5.39% decrease in their ownership of the stock. 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 three months, insiders have sold 52,476 shares of company stock valued at $7,624,925. 0.27% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Seaport Research Partners reissued a "buy" rating and issued a $170.00 price objective on shares of State Street in a research note on Monday, April 20th. Wells Fargo & Company boosted their price objective on shares of State Street from $162.00 to $171.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 26th. Truist Financial boosted their price target on State Street from $136.00 to $150.00 and gave the stock a "hold" rating in a research report on Monday, April 20th. The Goldman Sachs Group boosted their price target on State Street from $152.00 to $168.00 and gave the stock a "buy" rating in a research report on Monday, April 20th. Finally, Argus boosted their price target on State Street from $140.00 to $168.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Three equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $158.57.

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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