Prudential PLC Raises Position in State Street Corporation $STT

Key Points

• Prudential PLC has significantly increased its stake in State Street Corporation by 1,045.2%, acquiring a total of 63,762 shares valued at approximately $5.7 million.
• State Street recently declared a quarterly dividend increase from $0.76 to $0.84 per share, representing an annual yield of 3.0%.
• In its latest earnings report, State Street surpassed analysts' expectations with $2.53 earnings per share and revenue of $3.47 billion, marking a year-over-year revenue growth of 2.9%.

Prudential PLC lifted its holdings in State Street Corporation (NYSE:STT - Free Report) by 1,045.2% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 63,762 shares of the asset manager's stock after buying an additional 58,194 shares during the period. Prudential PLC's holdings in State Street were worth $5,709,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Eastern Bank raised its holdings in shares of State Street by 6,967.4% in the 1st quarter. Eastern Bank now owns 2,989,452 shares of the asset manager's stock valued at $267,646,000 after purchasing an additional 2,947,153 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of State Street by 236.3% during 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 during the last quarter. Nuveen LLC acquired a new position in State Street in the 1st quarter worth approximately $93,016,000. Azora Capital LP purchased a new stake in State Street in the fourth quarter valued at $80,294,000. Finally, Invesco Ltd. lifted its holdings in State Street by 9.0% in the first quarter. Invesco Ltd. now owns 8,184,690 shares of the asset manager's stock valued at $732,775,000 after acquiring an additional 674,120 shares during the period. Hedge funds and other institutional investors own 87.44% of the company's stock.

State Street Price Performance

NYSE STT traded down $0.19 during mid-day trading on Monday, hitting $110.88. The stock had a trading volume of 447,073 shares, compared to its average volume of 2,078,813. The company has a 50 day simple moving average of $106.93 and a 200 day simple moving average of $96.99. The company has a market cap of $31.46 billion, a price-to-earnings ratio of 12.41, a P/E/G ratio of 1.22 and a beta of 1.48. State Street Corporation has a 52-week low of $72.81 and a 52-week high of $114.28. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.09.

State Street (NYSE:STT - Get Free Report) last announced 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. State Street had a return on equity of 12.96% and a net margin of 12.59%. The business had revenue of $3.47 billion during the quarter, compared to analysts' expectations of $3.33 billion. During the same quarter last year, the business posted $2.15 earnings per share. The business's revenue for the quarter was up 2.9% on a year-over-year basis. Equities analysts forecast that State Street Corporation will post 9.68 EPS for the current fiscal year.

State Street Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Wednesday, October 1st will be issued a $0.84 dividend. This represents a $3.36 dividend on an annualized basis and a dividend yield of 3.0%. This is a positive change from State Street's previous quarterly dividend of $0.76. The ex-dividend date of this dividend is Wednesday, October 1st. State Street's payout ratio is presently 34.04%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on STT shares. Barclays lowered their price target on State Street from $127.00 to $120.00 and set an "overweight" rating on the stock in a research report on Monday, April 21st. Citigroup boosted their target price on shares of State Street from $100.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, July 2nd. Wells Fargo & Company upped their target price on shares of State Street from $113.00 to $121.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Keefe, Bruyette & Woods lowered their price objective on State Street from $118.00 to $113.00 and set an "outperform" rating for the company in a research report on Monday, April 21st. Finally, Evercore ISI boosted their price objective on State Street from $102.00 to $115.00 and gave the company an "outperform" rating in a research note on Wednesday, July 2nd. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the company's stock. Based on data from MarketBeat, State Street presently has a consensus rating of "Hold" and an average target price of $112.82.

Insider Buying and Selling at State Street

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

State Street 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.