Saudi Central Bank Raises Stake in State Street Corporation $STT

Key Points

• Saudi Central Bank increased its State Street stake by 89.2% during the second quarter, bringing its holdings to 19,511 shares valued at approximately $3.3 million. Institutional investors collectively own 87.44% of the company.
• Analysts remain broadly positive, with State Street receiving a consensus “Moderate Buy” rating and an average price target of $185.38. Goldman Sachs, Morgan Stanley and Keefe, Bruyette & Woods recently raised their targets.
• State Street reported better-than-expected quarterly results, including $3.65 in EPS and $4.05 billion in revenue, while revenue rose 23.3% year over year. The company also increased its quarterly dividend from $0.84 to $0.92 per share.

Saudi Central Bank boosted its stake in shares of State Street Corporation (NYSE:STT - Free Report) by 89.2% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 19,511 shares of the asset manager's stock after buying an additional 9,201 shares during the quarter. Saudi Central Bank's holdings in State Street were worth $3,309,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the stock. Philadelphia Investment Partners LLC bought a new position in shares of State Street during the 2nd quarter valued at approximately $26,000. Bell Investment Advisors Inc purchased a new position in State Street in the second quarter valued at approximately $28,000. Wilkerson Advisory Group LLC purchased a new position in State Street in the fourth quarter valued at approximately $29,000. JPL Wealth Management LLC bought a new position in State Street during the third quarter valued at $29,000. Finally, Phillip James Consulting Co. bought a new position in State Street during the fourth quarter valued at $30,000. Institutional investors own 87.44% of the company's stock.

Analyst Ratings Changes

Several analysts have issued reports on the company. The Goldman Sachs Group boosted their target price on State Street from $168.00 to $194.00 and gave the company a "buy" rating in a research note on Tuesday, June 30th. Morgan Stanley boosted their price objective on State Street from $183.00 to $195.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. JPMorgan Chase & Co. increased their target price on shares of State Street from $176.50 to $187.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 4th. Keefe, Bruyette & Woods upped their price target on shares of State Street from $195.00 to $215.00 and gave the company an "outperform" rating in a research note on Friday, July 17th. Finally, UBS Group set a $176.00 price objective on shares of State Street in a research note on Friday, June 26th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $185.38.

State Street Trading Up 0.1%

Shares of State Street stock opened at $194.41 on Tuesday. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.59 and a quick ratio of 0.59. State Street Corporation has a 1 year low of $104.64 and a 1 year high of $195.93. The firm has a market cap of $53.40 billion, a PE ratio of 17.14, a PEG ratio of 0.92 and a beta of 1.41. The company has a 50 day simple moving average of $185.01 and a two-hundred day simple moving average of $158.76.

State Street (NYSE:STT - Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The asset manager reported $3.65 earnings per share for the quarter, beating the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The firm had revenue of $4.05 billion for the quarter, compared to analysts' expectations of $3.88 billion. During the same quarter last year, the company posted $2.04 EPS. The business's quarterly revenue was up 23.3% on a year-over-year basis. Analysts expect that State Street Corporation will post 13.75 earnings per share for the current fiscal year.

State Street Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Thursday, October 1st. This is an increase from State Street's previous quarterly dividend of $0.84. State Street's dividend payout ratio (DPR) is currently 29.63%.

Insider Transactions at State Street

In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the transaction, the chief executive officer directly 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 ownership of the stock. The transaction was disclosed in a legal filing 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 company's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the completion of the sale, the executive vice president directly owned 49,794 shares of the company's stock, valued at $9,187,988.88. This trade represents 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. Company insiders own 0.27% of the company's stock.

State Street Profile

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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