State Street Corporation $STT Stake Raised by Royal Bank of Canada

Key Points

• Royal Bank of Canada increased its stake in State Street Corporation by 11.6%, now owning approximately 0.19% of the company with an investment valued at $49 million.
• State Street recently announced a quarterly dividend increase to $0.84 per share, up from the previous $0.76, with the next payment scheduled for October 14th.
• Analysts are generally optimistic about State Street, with the stock receiving multiple upgrades and a consensus rating of "Moderate Buy," along with an average target price of $114.18.

Royal Bank of Canada grew its holdings in shares of State Street Corporation (NYSE:STT - Free Report) by 11.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 548,190 shares of the asset manager's stock after buying an additional 56,973 shares during the period. Royal Bank of Canada owned 0.19% of State Street worth $49,079,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in STT. Brighton Jones LLC bought a new stake in State Street during the 4th quarter valued at $296,000. Aptus Capital Advisors LLC bought a new position in shares of State Street in the fourth quarter worth $218,000. Baird Financial Group Inc. raised its stake in shares of State Street by 37.7% during the fourth quarter. Baird Financial Group Inc. now owns 34,419 shares of the asset manager's stock valued at $3,378,000 after purchasing an additional 9,423 shares in the last quarter. Colonial Trust Co SC raised its stake in shares of State Street by 274.5% during the fourth quarter. Colonial Trust Co SC now owns 2,232 shares of the asset manager's stock valued at $219,000 after purchasing an additional 1,636 shares in the last quarter. Finally, Deutsche Bank AG lifted its holdings in State Street by 2.9% in the fourth quarter. Deutsche Bank AG now owns 1,736,708 shares of the asset manager's stock worth $170,458,000 after purchasing an additional 48,464 shares during the period. 87.44% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have commented on STT. The Goldman Sachs Group boosted their price target on shares of State Street from $98.00 to $111.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Evercore ISI boosted their target price on State Street from $102.00 to $115.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. Morgan Stanley upped their target price on State Street from $110.00 to $114.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 1st. Citigroup upgraded State Street from a "neutral" rating to a "buy" rating and lifted their price target for the company from $115.00 to $130.00 in a research report on Friday, September 5th. Finally, Truist Financial boosted their price objective on State Street from $116.00 to $125.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. Eight investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $114.18.

Insider Activity at State Street

In related news, EVP Michael L. Richards sold 990 shares of the firm's stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of $109.29, for a total value of $108,197.10. Following the completion of the transaction, the executive vice president owned 41,332 shares of the company's stock, valued at approximately $4,517,174.28. This trade represents a 2.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.29% of the company's stock.

State Street Trading Up 2.0%

Shares of NYSE STT traded up $2.17 during mid-day trading on Thursday, hitting $112.94. 2,076,668 shares of the company traded hands, compared to its average volume of 1,654,143. 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 Corporation has a 1 year low of $72.81 and a 1 year high of $116.37. The stock has a market capitalization of $32.04 billion, a price-to-earnings ratio of 12.65, a PEG ratio of 1.08 and a beta of 1.50. The business has a 50 day moving average of $111.30 and a two-hundred day moving average of $98.88.

State Street (NYSE:STT - Get Free Report) last issued its quarterly earnings results on Tuesday, July 15th. The asset manager reported $2.53 earnings per share for the quarter, topping 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 firm had revenue of $3.47 billion for the quarter, compared to analysts' expectations of $3.33 billion. During the same quarter last year, the business posted $2.15 EPS. State Street's revenue was up 2.9% on a year-over-year basis. On average, sell-side analysts anticipate that State Street Corporation will post 9.68 earnings per share for the current fiscal year.

State Street Increases Dividend

The company 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 dividend of $0.84 per share. This is an increase from State Street's previous quarterly dividend of $0.76. This represents a $3.36 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Wednesday, October 1st. State Street's dividend payout ratio (DPR) is presently 34.04%.

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.