Summit Global Investments Makes New $4.83 Million Investment in State Street Corporation $STT

Key Points

• Summit Global Investments acquired 27,639 State Street shares during the third quarter, worth approximately $4.83 million. Institutional investors and hedge funds collectively own 87.44% of STT.
• State Street reported quarterly EPS of $3.69, slightly ahead of estimates, while revenue rose 12.9% year over year to $4 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $190.03.
• STT shares opened at $169.63 after recently declining 2.4%. Insider selling under pre-arranged Rule 10b5-1 plans and a law-firm investigation into potential investor claims present additional sentiment and legal overhangs.

Summit Global Investments acquired a new position in shares of State Street Corporation (NYSE:STT - Free Report) in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 27,639 shares of the asset manager's stock, valued at approximately $4,826,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of State Street during the second quarter worth $4,139,389,000. State Street Corp increased its position in State Street by 1.2% in the 2nd quarter. State Street Corp now owns 13,538,311 shares of the asset manager's stock valued at $2,296,098,000 after buying an additional 163,362 shares in the last quarter. Regents of The University of California raised its position in shares of State Street by 15.6% during 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 purchasing an additional 1,358,923 shares during the period. Dimensional Fund Advisors LP raised its holdings in 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 buying an additional 51,754 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of State Street by 4.9% in the 2nd 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 during the last quarter. 87.44% of the stock is owned by institutional investors and hedge funds.

Key State Street News

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

• Positive Sentiment: JPMorgan raised its price target for State Street from $187.50 to $192.50, implying meaningful potential upside from recent trading levels. However, the firm maintained a “neutral” rating, limiting the bullish impact. JPMorgan analyst action
• Neutral Sentiment: Barclays reiterated a “hold” view on STT. The lack of a positive rating change suggests analysts remain cautious despite State Street’s recent earnings beat and year-over-year revenue growth. Barclays hold rating
• Neutral Sentiment: State Street Global Advisors and affiliated entities reported changes to, or exits from, substantial holdings in several Australian-listed companies, including Deterra Royalties, Sims, Greatland Resources, Pantoro Gold, and Downer EDI. These portfolio disclosures appear routine and have limited direct implications for STT’s earnings.
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of State Street investors. The announcement does not establish wrongdoing, but the possibility of litigation adds a reputational and legal overhang to the shares. Pomerantz investor investigation
• Negative Sentiment: Executive Vice President W. Bradford Hu sold 7,099 shares worth approximately $1.2 million, reducing his position by 14.26%. The transaction occurred under a pre-arranged Rule 10b5-1 plan, which makes it a weaker bearish signal than discretionary insider selling, but it may still weigh modestly on sentiment. State Street insider sale

Insider Buying and Selling at State Street

In other news, EVP W. Hu sold 7,099 shares of State Street stock in a transaction on Monday, October 26th. The shares were sold at an average price of $168.63, for a total transaction 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 approximately $7,199,657.85. The trade was a 14.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,554 shares of the company's stock in a transaction on 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 completion of the transaction, the chief executive officer owned 215,905 shares of the company's stock, valued at $35,537,963. This trade represents a 6.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 Trading Down 2.4%

Shares of STT opened at $169.63 on Friday. The firm's 50 day simple moving average is $180.18 and its 200 day simple moving average is $158.73. The company has a market capitalization of $46.15 billion, a P/E ratio of 13.85, a P/E/G ratio of 0.79 and a beta of 1.41. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.59 and a quick ratio of 0.59. State Street Corporation has a 1-year low of $111.63 and a 1-year high of $195.93.

State Street (NYSE:STT - Get Free Report) last announced its earnings results on Wednesday, October 14th. The asset manager reported $3.69 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $4.03 billion. During the same period in the previous year, the business posted $2.78 earnings per share. State Street's revenue for the quarter was up 12.9% on a year-over-year basis. Sell-side analysts forecast that State Street Corporation will post 13.77 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several brokerages have weighed in on STT. Weiss Ratings cut State Street from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Tuesday, October 6th. Zacks Research cut shares of State Street from a "strong-buy" rating to a "hold" rating in a research report on Friday, September 18th. Citigroup cut their target price on State Street from $212.00 to $190.00 and set a "buy" rating on the stock in a research note on Friday, October 16th. Capital One Financial set a $200.00 price target on shares of State Street in a research report on Tuesday, October 6th. Finally, Wells Fargo & Company raised their target price on State Street from $196.00 to $215.00 and gave the stock an "overweight" rating in a research report on Friday, July 17th. Ten investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $190.03.

State Street Profile

State Street Corporation is a financial services holding company headquartered in Boston, Massachusetts. Founded in 1792, it provides services primarily to institutional investors, including asset owners, asset managers, insurance companies, official institutions and other financial organizations.

The company's businesses include investment servicing, asset management, securities finance, foreign exchange, and trading and research services. Through its servicing operations, State Street provides custody, fund accounting, administration, investment operations, transfer agency and related support.

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