State Street Corporation $STT Shares Sold by BNP Paribas Financial Markets

Key Points

• BNP Paribas Financial Markets cut its State Street stake by 11.4% in the fourth quarter, selling 98,201 shares and leaving it with 765,927 shares worth about $98.8 million.
• State Street posted stronger-than-expected quarterly results, reporting EPS of $2.84 versus $2.64 expected and revenue of $3.80 billion, up 15.6% year over year.
• The company also raised shareholder returns and saw insider selling: it declared a quarterly dividend of $0.84 per share, while CEO Ronald P. Hanley and EVP W. Bradford Hu sold shares under pre-arranged 10b5-1 plans.

BNP Paribas Financial Markets lowered its position in shares of State Street Corporation (NYSE:STT - Free Report) by 11.4% in the fourth quarter, according to the company in its most recent filing with the SEC. The firm owned 765,927 shares of the asset manager's stock after selling 98,201 shares during the quarter. BNP Paribas Financial Markets owned about 0.27% of State Street worth $98,812,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Franklin Resources Inc. lifted its position in State Street by 3.7% during the 3rd quarter. Franklin Resources Inc. now owns 3,859,012 shares of the asset manager's stock worth $447,684,000 after acquiring an additional 137,049 shares during the period. Nordea Investment Management AB lifted its position in State Street by 15.4% during the 4th quarter. Nordea Investment Management AB now owns 2,829,271 shares of the asset manager's stock worth $367,041,000 after acquiring an additional 377,568 shares during the period. Regents of The University of California acquired a new stake in State Street during the 3rd quarter worth about $324,576,000. First Trust Advisors LP lifted its position in State Street by 36.8% during the 3rd quarter. First Trust Advisors LP now owns 2,747,646 shares of the asset manager's stock worth $318,754,000 after acquiring an additional 738,456 shares during the period. Finally, Norges Bank acquired a new stake in State Street during the 4th quarter worth about $303,483,000. Institutional investors and hedge funds own 87.44% of the company's stock.

State Street Stock Performance

Shares of STT stock opened at $155.63 on Monday. The stock has a market cap of $43.07 billion, a PE ratio of 15.78, a price-to-earnings-growth ratio of 0.85 and a beta of 1.43. The business has a 50-day simple moving average of $143.30 and a 200-day simple moving average of $132.31. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.04. State Street Corporation has a 52-week low of $94.72 and a 52-week high of $159.31.

State Street (NYSE:STT - Get Free Report) last issued its quarterly earnings data on Friday, April 17th. The asset manager reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate 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 analysts' expectations of $3.59 billion. During the same quarter in the previous year, the firm posted $2.04 EPS. The company's revenue for the quarter was up 15.6% on a year-over-year basis. On average, equities analysts expect that State Street Corporation will post 12.35 EPS for the current year.

State Street Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 13th. Investors of record on Wednesday, July 1st will be paid a $0.84 dividend. This represents a $3.36 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Wednesday, July 1st. State Street's payout ratio is currently 34.08%.

Insider Transactions at State Street

In related news, EVP W. Bradford Hu sold 9,212 shares of State Street stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total value of $1,431,084.20. Following the completion of the transaction, the executive vice president owned 59,552 shares in the company, valued at $9,251,403.20. The trade was a 13.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $155.35, for a total value of $2,260,808.55. Following the completion of the transaction, the chief executive officer owned 255,512 shares of the company's stock, valued at approximately $39,693,789.20. This represents a 5.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 52,476 shares of company stock worth $7,624,925 over the last quarter. Company insiders own 0.27% of the company's stock.

Key Stories Impacting State Street

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

• Positive Sentiment: State Street was highlighted as one of the better-positioned names in the regional banks/financials group, with analysts citing favorable industry trends such as restructuring, acquisitions, digitization, loan demand, and lower rates as potential tailwinds for growth. Article Title
• Positive Sentiment: State Street Investment Management announced it will close and liquidate the EMTL ETF, which can be read as disciplined product management and a focus on pruning weaker offerings to improve capital efficiency. Article Title
• Neutral Sentiment: State Street announced that CFO John Woods will present at the Morgan Stanley U.S. Financials Conference on June 10. The event may provide updates on strategy and outlook, but it is not a direct business catalyst by itself. Article Title
• Neutral Sentiment: State Street’s entities ceased to be substantial holders in several Australian companies, reflecting portfolio ownership changes that do not appear material to State Street’s own earnings power. Article Title
• Negative Sentiment: CEO Ronald P. Hanley and EVP W. Bradford Hu both sold shares under pre-arranged 10b5-1 plans. While routine, insider selling can still pressure sentiment when the stock is trading close to recent highs. Article Title

Wall Street Analysts Forecast Growth

STT has been the subject of several analyst reports. Morgan Stanley boosted their price objective on State Street from $155.00 to $166.00 and gave the company an "overweight" rating in a report on Monday, April 20th. Weiss Ratings raised State Street from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday. Seaport Research Partners reissued a "buy" rating and issued a $170.00 price objective on shares of State Street in a report on Monday, April 20th. Bank of America raised State Street from an "underperform" rating to a "neutral" rating and set a $143.00 price objective for the company in a report on Monday, April 6th. Finally, JPMorgan Chase & Co. boosted their price objective on State Street from $137.50 to $158.50 and gave the company a "neutral" rating in a report on Monday, May 11th. Three research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $158.57.

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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