Nykredit A S Buys New Stake in State Street Corporation $STT

Key Points

• Nykredit A S acquired 94,920 shares of State Street during the second quarter, worth approximately $16.1 million. Institutional investors collectively own 87.44% of the company.
• Analysts remain generally positive, with State Street holding a “Moderate Buy” consensus rating and an average price target of $185.38. Recent upgrades included Citigroup, Morgan Stanley, Barclays and Zacks Research.
• State Street reported quarterly EPS of $3.65, exceeding estimates, while revenue rose 23.3% year over year to $4.05 billion. The company also raised its quarterly dividend to $0.92 per share, equivalent to a 2.0% yield.

Nykredit A S bought a new stake in shares of State Street Corporation (NYSE:STT - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 94,920 shares of the asset manager's stock, valued at approximately $16,098,000.

Other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in State Street during the 2nd quarter valued at about $4,139,389,000. Regents of The University of California boosted its holdings in shares of State Street by 15.6% in the first quarter. Regents of The University of California now owns 10,065,118 shares of the asset manager's stock valued at $1,273,841,000 after acquiring an additional 1,358,923 shares in the last quarter. Victory Capital Management Inc. increased its stake in shares of State Street by 30.8% during the fourth quarter. Victory Capital Management Inc. now owns 4,559,546 shares of the asset manager's stock valued at $588,227,000 after acquiring an additional 1,074,174 shares during the period. Franklin Resources Inc. increased its stake in shares of State Street by 1.7% during the fourth quarter. Franklin Resources Inc. now owns 3,926,321 shares of the asset manager's stock valued at $506,534,000 after acquiring an additional 67,309 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in State Street by 4.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,962,274 shares of the asset manager's stock worth $502,402,000 after purchasing an additional 137,798 shares in the last quarter. Institutional investors and hedge funds own 87.44% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Citigroup upped their target price on State Street from $193.00 to $210.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Zacks Research upgraded State Street from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. boosted their price objective on State Street from $176.50 to $187.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. Morgan Stanley upped their price objective on State Street from $183.00 to $195.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Finally, Barclays raised their target price on State Street from $165.00 to $200.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. Three research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, State Street has a consensus rating of "Moderate Buy" and an average price target of $185.38.

State Street Trading Down 0.3%

Shares of NYSE:STT opened at $182.56 on Friday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. The stock has a market capitalization of $50.15 billion, a price-to-earnings ratio of 16.10, a PEG ratio of 0.87 and a beta of 1.41. State Street Corporation has a 1-year low of $104.64 and a 1-year high of $195.93. The company has a 50 day moving average price of $187.36 and a 200 day moving average price of $162.27.

State Street (NYSE:STT - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.31. The company had revenue of $4.05 billion for the quarter, compared to analysts' expectations of $3.88 billion. State Street had a return on equity of 15.26% and a net margin of 15.02%.The firm's revenue was up 23.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.04 earnings per share. On average, research analysts anticipate that State Street Corporation will post 13.76 EPS for the current fiscal year.

State Street Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from State Street's previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. State Street's payout ratio is presently 29.63%.

Insider Buying and Selling at State Street

In related news, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total value of $2,680,226.01. Following the transaction, the chief executive officer owned 240,959 shares of the company's stock, valued at approximately $44,377,419.03. This trade represents a 5.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of the business's stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $184.52, for a total value of $1,800,546.16. Following the sale, the executive vice president owned 49,794 shares in the company, valued at approximately $9,187,988.88. The trade was a 16.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.27% of the company's stock.

About State Street

State Street Corporation is a financial services company headquartered in Boston, Massachusetts. Founded in 1792, it serves institutional investors, asset managers, asset owners, insurance companies, official institutions and other financial organizations worldwide.

Through its investment servicing business, State Street provides custody and fund administration, accounting, transfer agency, middle-office outsourcing, collateral management, performance measurement and regulatory reporting services.

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