Wealthfront Advisers LLC Takes Position in State Street Corporation $STT

Key Points

• Wealthfront Advisers acquired 70,275 shares of State Street worth approximately $11.9 million, while other institutional investors also increased their positions. Institutions collectively own 87.44% of STT.
• State Street reported quarterly earnings of $3.65 per share, beating estimates of $3.34, while revenue rose 23.3% year over year to $4.05 billion.
• The company raised its quarterly dividend from $0.84 to $0.92 per share, equivalent to an annualized dividend of $3.68 and a 1.9% yield. Analysts give the stock a “Moderate Buy” consensus rating with an average price target of $185.38.

Wealthfront Advisers LLC purchased a new position in State Street Corporation (NYSE:STT - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 70,275 shares of the asset manager's stock, valued at approximately $11,919,000.

Other large investors have also recently made changes to their positions in the company. IFM Investors Pty Ltd lifted its position in State Street by 9.7% during the first quarter. IFM Investors Pty Ltd now owns 84,534 shares of the asset manager's stock worth $10,699,000 after buying an additional 7,469 shares in the last quarter. Concurrent Investment Advisors LLC acquired a new stake in shares of State Street in the 4th quarter worth $1,959,000. New York State Teachers Retirement System raised its holdings in shares of State Street by 9.7% during the 1st quarter. New York State Teachers Retirement System now owns 303,919 shares of the asset manager's stock worth $38,464,000 after acquiring an additional 26,862 shares during the period. SBI Okasan Asset Management Co.Ltd. acquired a new position in shares of State Street during the 4th quarter valued at about $935,000. Finally, Illinois Municipal Retirement Fund boosted its position in shares of State Street by 18.3% during the 1st quarter. Illinois Municipal Retirement Fund now owns 85,775 shares of the asset manager's stock valued at $10,856,000 after acquiring an additional 13,245 shares during the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

State Street Stock Down 0.5%

State Street stock opened at $192.03 on Wednesday. The company has a market capitalization of $52.75 billion, a PE ratio of 16.93, a price-to-earnings-growth ratio of 0.79 and a beta of 1.41. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. State Street Corporation has a fifty-two week low of $104.64 and a fifty-two week high of $195.18. The firm has a 50 day moving average price of $178.87 and a 200 day moving average price of $152.80.

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

State Street Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be paid a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, October 1st. This is a positive change from State Street's previous quarterly dividend of $0.84. State Street's dividend payout ratio is currently 29.63%.

Wall Street Analysts Forecast Growth

STT has been the topic of several recent analyst reports. Barclays boosted their target price on shares of State Street from $165.00 to $200.00 and gave the company an "equal weight" rating in a report on Friday, July 17th. Evercore set a $200.00 price objective on State Street in a report on Monday, July 20th. The Goldman Sachs Group increased their price objective on State Street from $168.00 to $194.00 and gave the stock a "buy" rating in a research report on Tuesday, June 30th. Truist Financial reissued a "hold" rating and set a $191.00 target price (up from $176.00) on shares of State Street in a research note on Friday, July 17th. Finally, Zacks Research raised State Street from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 21st. Two 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 stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $185.38.

Insider Buying and Selling

In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the business's stock in a transaction dated 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 sale, the chief executive officer directly owned 240,959 shares in the company, valued at $44,377,419.03. This represents a 5.70% 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, EVP Michael L. Richards sold 1,500 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the sale, the executive vice president owned 41,827 shares in the company, valued at $6,781,829.78. This trade represents a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 49,576 shares of company stock valued at $8,415,875. Corporate insiders own 0.27% of the company's stock.

State Street Company 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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