State Street Corporation $STT Stock: Private Management Group Inc. Reduces Holdings

Key Points

• Private Management Group cut its State Street stake by 17.2% in the third quarter, selling 56,244 shares; it still held 271,340 shares worth about $47.4 million. Institutional investors and hedge funds collectively own 87.44% of the stock.
• State Street’s quarterly EPS of $3.69 slightly beat estimates, while revenue rose 12.9% year over year to $4 billion, coming in just below consensus.
• Analysts rate the stock a “Moderate Buy”, with a consensus price target of $193.97; 11 analysts recommend Buy and six recommend Hold.

Private Management Group Inc. trimmed its stake in State Street Corporation (NYSE:STT - Free Report) by 17.2% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 271,340 shares of the asset manager's stock after selling 56,244 shares during the quarter. State Street accounts for 1.2% of Private Management Group Inc.'s portfolio, making the stock its 8th largest position. Private Management Group Inc. owned about 0.10% of State Street worth $47,373,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of State Street during the 2nd quarter valued at $4,139,389,000. State Street Corp increased its stake in shares of State Street by 1.2% in the second quarter. State Street Corp now owns 13,538,311 shares of the asset manager's stock worth $2,296,098,000 after acquiring an additional 163,362 shares during the last quarter. Regents of The University of California increased its stake in shares of State Street by 15.6% in the first quarter. Regents of The University of California now owns 10,065,118 shares of the asset manager's stock worth $1,273,841,000 after acquiring an additional 1,358,923 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of State Street by 4.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,962,274 shares of the asset manager's stock worth $502,402,000 after acquiring an additional 137,798 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of State Street by 1.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,101,952 shares of the asset manager's stock worth $392,539,000 after acquiring an additional 51,754 shares in the last quarter. 87.44% of the stock is currently owned by institutional investors and hedge funds.

State Street Stock Performance

Shares of STT opened at $171.09 on Tuesday. The company's fifty day moving average is $177.43 and its 200-day moving average is $159.89. State Street Corporation has a 12 month low of $111.63 and a 12 month high of $195.93. The firm has a market cap of $46.55 billion, a price-to-earnings ratio of 13.97, a price-to-earnings-growth ratio of 0.80 and a beta of 1.38. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.02.

State Street (NYSE:STT - Get Free Report) last released its quarterly earnings results on Wednesday, October 14th. The asset manager reported $3.69 earnings per share for the quarter, beating analysts' consensus estimates of $3.68 by $0.01. State Street had a net margin of 15.81% and a return on equity of 16.11%. The business had revenue of $4 billion for the quarter, compared to the consensus estimate of $4.03 billion. During the same quarter last year, the firm earned $2.78 EPS. State Street's revenue for the quarter was up 12.9% on a year-over-year basis. Equities analysts expect that State Street Corporation will post 13.78 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

STT has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their price objective on State Street from $187.50 to $192.50 and gave the company a "neutral" rating in a research report on Friday, October 30th. TD Cowen started coverage on State Street in a research report on Thursday, October 8th. They issued a "buy" rating and a $205.00 target price on the stock. BMO Capital Markets cut their price target on State Street from $200.00 to $185.00 and set an "outperform" rating for the company in a research note on Monday, October 19th. Evercore lifted their price target on State Street from $185.00 to $200.00 in a report on Wednesday, October 28th. Finally, Morgan Stanley lifted their price target on State Street from $183.00 to $195.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Eleven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $193.97.

Insider Buying and Selling at State Street

In other State Street news, CEO Hanley Ronald P. O sold 14,554 shares of the firm's stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $164.60, for a total transaction of $2,395,588.40. Following the transaction, the chief executive officer directly owned 215,905 shares in the company, valued at $35,537,963. This trade represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a filing 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, EVP W. Hu sold 7,099 shares of the business's stock in a transaction dated Monday, October 26th. The stock was sold at an average price of $168.63, for a total value of $1,197,104.37. Following the completion of the sale, the executive vice president directly owned 42,695 shares of the company's stock, valued at $7,199,657.85. This represents a 14.26% 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. Corporate insiders own 0.27% of the company's stock.

State Street Profile

State Street Corporation is a financial services company headquartered in Boston, Massachusetts. Founded in 1792 as Union Bank, it has a long history serving institutional clients and is among the oldest financial institutions in the United States.

The company provides investment servicing, including custody, fund administration, accounting, and related middle- and back-office services. Its clients include asset managers, pension funds, insurers, and other financial institutions.

Through State Street Investment Management, the company also offers investment management services and investment products, including the SPDR family of exchange-traded funds.

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