Pacer Advisors Inc. Reduces Stock Position in State Street Corporation $STT

Key Points

• Pacer Advisors cut its stake in State Street by 21.2% in the fourth quarter, selling 7,330 shares and leaving it with 27,258 shares valued at about $3.52 million.
• State Street reported strong quarterly results, with EPS of $2.84 topping estimates and revenue of $3.80 billion beating expectations, while revenue rose 15.6% year over year.
• The company also announced a quarterly dividend of $0.84 per share, implying an annualized payout of $3.36 and a 1.9% yield; analysts currently view the stock as a Moderate Buy with a consensus target price of $159.97.

Pacer Advisors Inc. reduced its holdings in shares of State Street Corporation (NYSE:STT - Free Report) by 21.2% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 27,258 shares of the asset manager's stock after selling 7,330 shares during the quarter. Pacer Advisors Inc.'s holdings in State Street were worth $3,517,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in STT. Wilkerson Advisory Group LLC bought a new position in State Street during the 4th quarter valued at $29,000. JPL Wealth Management LLC bought a new stake in shares of State Street in the 3rd quarter worth about $29,000. Phillip James Consulting Co. acquired a new stake in shares of State Street in the 4th quarter valued at about $30,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of State Street in the 3rd quarter valued at about $35,000. Finally, Ameriflex Group Inc. lifted its position in shares of State Street by 102.5% during the third quarter. Ameriflex Group Inc. now owns 318 shares of the asset manager's stock worth $37,000 after purchasing an additional 161 shares during the last quarter. Institutional investors and hedge funds own 87.44% of the company's stock.

Insider Activity at State Street

In other State Street news, EVP W. Bradford Hu sold 9,212 shares of the firm's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $155.35, for a total transaction of $1,431,084.20. Following the transaction, the executive vice president owned 59,552 shares of the company's stock, valued at approximately $9,251,403.20. This trade represents a 13.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Mostapha Tahiri sold 9,611 shares of the business's stock in a transaction dated 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 sale, the chief operating officer owned 64,642 shares in the company, valued at $9,885,701.06. This trade represents a 12.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 37,876 shares of company stock worth $5,866,583. 0.27% of the stock is currently owned by corporate insiders.

State Street Price Performance

STT opened at $174.13 on Wednesday. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.04. The company's 50-day moving average price is $156.07 and its 200 day moving average price is $138.15. State Street Corporation has a fifty-two week low of $101.84 and a fifty-two week high of $175.46. The firm has a market cap of $48.19 billion, a price-to-earnings ratio of 17.66, a price-to-earnings-growth ratio of 0.95 and a beta of 1.43.

State Street (NYSE:STT - Get Free Report) last released its quarterly earnings data on Friday, April 17th. The asset manager reported $2.84 earnings per share (EPS) for the quarter, beating 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 business had revenue of $3.80 billion during the quarter, compared to analyst estimates of $3.59 billion. During the same quarter in the previous year, the firm posted $2.04 EPS. The business's revenue for the quarter was up 15.6% compared to the same quarter last year. As a group, sell-side 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 announced a quarterly dividend, which will be paid on Monday, July 13th. Investors of record on Wednesday, July 1st will be given a $0.84 dividend. This represents a $3.36 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Wednesday, July 1st. State Street's dividend payout ratio is currently 34.08%.

State Street News Roundup

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

• Neutral Sentiment: State Street exited or reduced substantial holdings in several companies, including Smartgroup, Aussie Broadband, Deterra Royalties, Electro Optic Systems, Super Retail Group, Austal, Bapcor, Bega Cheese, and Clarity Pharmaceuticals. These are disclosure items tied to asset management positions, not State Street’s own earnings or guidance. Article: State Street exits substantial holding in Smartgroup
• Neutral Sentiment: State Street SPDR Straits Times Index ETF issued an updated prospectus for its Singapore benchmark fund, another routine fund-management update that is unlikely to have a major direct impact on STT’s near-term fundamentals. Article: State Street SPDR STI ETF issues updated prospectus for Singapore benchmark fund

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Argus lifted their price target on State Street from $140.00 to $168.00 and gave the stock a "buy" rating in a research note on Tuesday, April 21st. Keefe, Bruyette & Woods increased their target price on State Street from $157.00 to $175.00 and gave the stock an "outperform" rating in a report on Monday, April 20th. Royal Bank Of Canada boosted their price target on State Street from $135.00 to $155.00 and gave the company a "sector perform" rating in a report on Monday, April 20th. JPMorgan Chase & Co. upped their price target on State Street from $137.50 to $158.50 and gave the company a "neutral" rating in a research report on Monday, May 11th. Finally, Zacks Research upgraded State Street from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 21st. Two investment analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, State Street presently has an average rating of "Moderate Buy" and a consensus target price of $159.97.

About State Street

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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