Tidal Investments LLC Reduces Stock Holdings in State Street Corporation $STT

Key Points

• Tidal Investments cut its State Street position by 28.6% in the second quarter, selling 16,053 shares and retaining 40,172 shares valued at approximately $6.78 million. Institutional investors collectively own 87.44% of STT.
• Analysts maintain a generally positive outlook, with State Street receiving a “Moderate Buy” consensus rating and an average price target of $185.38. Recent targets range as high as $215, although some firms retain neutral ratings.
• State Street reported stronger-than-expected quarterly results, with EPS of $3.65 and revenue of $4.05 billion, up 23.3% year over year. The company also raised its quarterly dividend to $0.92 per share, representing a 1.9% yield.

Tidal Investments LLC lessened its position in shares of State Street Corporation (NYSE:STT - Free Report) by 28.6% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 40,172 shares of the asset manager's stock after selling 16,053 shares during the quarter. Tidal Investments LLC's holdings in State Street were worth $6,780,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. IPG Investment Advisors LLC purchased a new position in State Street during the 2nd quarter valued at about $2,027,000. Engineers Gate Manager LP lifted its holdings in shares of State Street by 1,213.4% in the second quarter. Engineers Gate Manager LP now owns 135,388 shares of the asset manager's stock valued at $22,962,000 after purchasing an additional 125,080 shares in the last quarter. Pinnacle Wealth Management Advisory Group LLC lifted its holdings in shares of State Street by 12.3% in the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 2,427 shares of the asset manager's stock valued at $412,000 after purchasing an additional 266 shares in the last quarter. Integrated Wealth Concepts LLC grew its position in shares of State Street by 1.7% in the second quarter. Integrated Wealth Concepts LLC now owns 12,526 shares of the asset manager's stock valued at $2,124,000 after purchasing an additional 210 shares during the last quarter. Finally, Baird Financial Group Inc. grew its position in shares of State Street by 8.7% in the second quarter. Baird Financial Group Inc. now owns 14,562 shares of the asset manager's stock valued at $2,470,000 after purchasing an additional 1,171 shares during the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

STT has been the subject of a number of recent research reports. Weiss Ratings reissued a "buy (b+)" rating on shares of State Street in a research note on Tuesday, August 25th. Bank of America upped their target price on State Street from $160.00 to $190.00 and gave the company a "neutral" rating in a research note on Tuesday, July 7th. Wells Fargo & Company increased their target price on State Street from $196.00 to $215.00 and gave the company an "overweight" rating in a report on Friday, July 17th. JPMorgan Chase & Co. raised their price target on State Street from $176.50 to $187.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 4th. Finally, The Goldman Sachs Group boosted their price target on State Street from $168.00 to $194.00 and gave the stock a "buy" rating in a report on Tuesday, June 30th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, State Street has an average rating of "Moderate Buy" and an average price target of $185.38.

Insider Buying and Selling at State Street

In other news, EVP W. Hu sold 9,758 shares of State Street stock in a transaction on Friday, July 24th. The stock was sold at an average price of $184.52, for a total value of $1,800,546.16. Following the completion of the sale, the executive vice president owned 49,794 shares of the company's stock, valued at $9,187,988.88. The trade was a 16.39% decrease in their ownership of the stock. 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 Ronald O’Hanley sold 14,553 shares of the company's stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total value of $2,680,226.01. Following the completion of the transaction, the chief executive officer owned 240,959 shares of the company's stock, valued at $44,377,419.03. The trade was a 5.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.27% of the stock is owned by company insiders.

State Street Stock Performance

Shares of STT opened at $193.37 on Friday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. The company has a market capitalization of $53.12 billion, a price-to-earnings ratio of 17.05, a PEG ratio of 0.92 and a beta of 1.41. The company's 50 day simple moving average is $186.78 and its 200 day simple moving average is $160.33. State Street Corporation has a 1 year low of $104.64 and a 1 year high of $195.93.

State Street (NYSE:STT - Get Free Report) last released its earnings results on Thursday, July 16th. The asset manager reported $3.65 EPS for the quarter, topping the consensus estimate of $3.34 by $0.31. The firm had revenue of $4.05 billion during the quarter, compared to analysts' expectations of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. State Street's revenue for the quarter was up 23.3% on a year-over-year basis. During the same period in the previous year, the company earned $2.04 EPS. On average, sell-side analysts predict that State Street Corporation will post 13.76 EPS for the current year.

State Street Increases Dividend

The firm 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 dividend of $0.92 per share. This represents a $3.68 annualized dividend and a dividend yield of 1.9%. This is a positive change from State Street's previous quarterly dividend of $0.84. The ex-dividend date is Thursday, October 1st. State Street's payout ratio is 29.63%.

Key Stories Impacting State Street

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

• Positive Sentiment: An analysis argues that State Street’s preferred shares offer an approximately 6.8% dividend yield, which could appeal to income-focused investors and highlight the company’s ability to support attractive capital returns. The article primarily concerns preferred securities, so the direct effect on STT common shares may be limited. State Street: 6.8% Preferred Dividend Yield Is Too Good To Ignore
• Positive Sentiment: State Street appointed Tim Helyar to lead its Asia-Pacific business effective September 10. The leadership change may support the company’s regional growth strategy in asset servicing and investment management, though no immediate financial impact was disclosed. State Street Corporation Announces Appointment of Tim Helyar to Head of Asia Pacific
• Neutral Sentiment: State Street and affiliated asset-management entities reported that their holdings fell below substantial-holder thresholds in IDP Education, Inghams Group, Sims, Breville Group, Greatland Resources, Amotiv, Austal, Elsight, Service Stream, and Smartgroup. These notices may reflect routine portfolio rebalancing, index changes, or client-driven trading; they do not necessarily represent a negative view of State Street or materially affect its earnings. State Street Ownership Disclosures
• Negative Sentiment: Harbor Mid Cap Value Fund trimmed its State Street position following the stock’s appreciation. The sale could create modest near-term supply and signals that at least one investor is taking profits, although it does not indicate a change in State Street’s fundamentals. Harbor Mid Cap Value Fund Trimmed State Street Following Appreciation

State Street Company Profile

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

Through its investment servicing business, State Street provides custody and fund administration, accounting, transfer agency, middle-office outsourcing, collateral management, performance measurement and regulatory reporting services.

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