Providence Capital Advisors LLC Acquires New Holdings in State Street Corporation $STT

Key Points

• Providence Capital Advisors LLC has acquired a new stake in State Street Corporation, purchasing 25,075 shares valued at approximately $2.25 million.
• State Street recently announced an increase in its quarterly dividend from $0.76 to $0.84, with a yield of 3.0%.
• The firm reported earnings of $2.53 EPS for the last quarter, exceeding analysts' estimates, with revenue also growing by 2.9% year-over-year.

Providence Capital Advisors LLC purchased a new position in shares of State Street Corporation (NYSE:STT - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 25,075 shares of the asset manager's stock, valued at approximately $2,245,000.

A number of other hedge funds and other institutional investors also recently bought and sold shares of STT. Eastern Bank lifted its holdings in State Street by 6,967.4% in the first quarter. Eastern Bank now owns 2,989,452 shares of the asset manager's stock valued at $267,646,000 after acquiring an additional 2,947,153 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of State Street by 236.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,309,130 shares of the asset manager's stock valued at $226,642,000 after buying an additional 1,622,408 shares in the last quarter. Nuveen LLC purchased a new stake in State Street during the 1st quarter worth about $93,016,000. Azora Capital LP purchased a new stake in State Street during the 4th quarter worth about $80,294,000. Finally, Invesco Ltd. increased its position in State Street by 9.0% during the 1st 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 in the last quarter. Institutional investors and hedge funds own 87.44% of the company's stock.

Insider Buying and Selling at State Street

In other news, EVP Michael L. Richards sold 990 shares of the firm's stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total transaction of $108,197.10. Following the completion of the sale, the executive vice president directly owned 41,332 shares of the company's stock, valued at $4,517,174.28. This trade represents a 2.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.29% of the stock is owned by company insiders.

State Street Trading Up 0.3%

Shares of NYSE:STT traded up $0.2950 during midday trading on Wednesday, reaching $111.4450. The company had a trading volume of 497,605 shares, compared to its average volume of 2,068,281. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.57 and a current ratio of 0.57. State Street Corporation has a 1-year low of $72.81 and a 1-year high of $114.28. The firm has a market cap of $31.62 billion, a price-to-earnings ratio of 12.47, a price-to-earnings-growth ratio of 1.22 and a beta of 1.48. The company has a fifty day simple moving average of $107.41 and a two-hundred day simple moving average of $97.16.

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

State Street Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Wednesday, October 1st will be paid a $0.84 dividend. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $3.36 annualized dividend and a yield of 3.0%. This is an increase from State Street's previous quarterly dividend of $0.76. State Street's dividend payout ratio (DPR) is currently 37.63%.

Wall Street Analyst Weigh In

Several analysts have commented on STT shares. Bank of America lifted their price target on State Street from $106.00 to $109.00 and gave the company an "underperform" rating in a report on Wednesday, July 16th. The Goldman Sachs Group upped their price target on State Street from $98.00 to $111.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Wells Fargo & Company increased their target price on State Street from $113.00 to $121.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Citigroup upped their price target on State Street from $100.00 to $115.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. Finally, Evercore ISI upped their price target on State Street from $102.00 to $115.00 and gave the company an "outperform" rating in a research report 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 given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $112.82.

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.