Wellington Management Group LLP Lowers Holdings in State Street Corporation $STT

Key Points

• Wellington Management Group LLP significantly reduced its holdings in State Street Corporation by 91.8%, selling 506,055 shares and retaining only 45,155 shares worth approximately $4.04 million.
• State Street recently announced a quarterly dividend increase to $0.84 per share, resulting in an annualized dividend yield of 2.9%, reflecting its strong financial performance.
• Goldman Sachs and Citigroup both raised their price targets for State Street, with estimates reaching up to $121.00, indicating analysts have a generally positive outlook for the company's stock.

Wellington Management Group LLP trimmed its position in State Street Corporation (NYSE:STT - Free Report) by 91.8% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 45,155 shares of the asset manager's stock after selling 506,055 shares during the quarter. Wellington Management Group LLP's holdings in State Street were worth $4,043,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the company. Korea Investment CORP lifted its holdings in shares of State Street by 4.2% in the 1st quarter. Korea Investment CORP now owns 228,749 shares of the asset manager's stock worth $20,480,000 after buying an additional 9,197 shares during the period. Northern Trust Corp lifted its stake in shares of State Street by 2.8% during the 1st quarter. Northern Trust Corp now owns 4,264,161 shares of the asset manager's stock worth $381,770,000 after purchasing an additional 115,751 shares during the last quarter. Brooklyn Investment Group lifted its stake in shares of State Street by 63.1% during the 1st quarter. Brooklyn Investment Group now owns 1,486 shares of the asset manager's stock worth $133,000 after purchasing an additional 575 shares during the last quarter. Affinity Investment Advisors LLC purchased a new stake in shares of State Street during the 1st quarter worth $382,000. Finally, Northwest & Ethical Investments L.P. lifted its stake in shares of State Street by 42.0% during the 1st quarter. Northwest & Ethical Investments L.P. now owns 33,495 shares of the asset manager's stock worth $2,999,000 after purchasing an additional 9,905 shares during the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

State Street Trading Down 0.2%

Shares of NYSE:STT opened at $115.02 on Friday. The business's 50-day moving average is $110.06 and its 200 day moving average is $98.03. State Street Corporation has a 1 year low of $72.81 and a 1 year high of $116.37. The firm has a market capitalization of $32.63 billion, a P/E ratio of 12.88, a P/E/G ratio of 1.13 and a beta of 1.48. The company has a debt-to-equity ratio of 1.09, a current ratio of 0.57 and a quick ratio of 0.57.

State Street (NYSE:STT - Get Free Report) last announced its earnings results on Tuesday, July 15th. The asset manager reported $2.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.36 by $0.17. State Street had a return on equity of 12.96% and a net margin of 12.59%.The company had revenue of $3.47 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same period in the prior year, the company posted $2.15 EPS. The firm's quarterly revenue was up 2.9% compared to the same quarter last year. On average, research analysts predict that State Street Corporation will post 9.68 earnings per share for the current fiscal year.

State Street Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Wednesday, October 1st will be given a dividend of $0.84 per share. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $3.36 annualized dividend and a yield of 2.9%. This is an increase from State Street's previous quarterly dividend of $0.76. State Street's dividend payout ratio is currently 34.04%.

Analysts Set New Price Targets

STT has been the subject of a number of analyst reports. The Goldman Sachs Group upped their price objective on State Street from $98.00 to $111.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Citigroup upped their price objective on State Street from $100.00 to $115.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 2nd. Cfra Research upgraded State Street from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, July 15th. Wells Fargo & Company upped their price objective on State Street from $113.00 to $121.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Finally, Morgan Stanley upped their price objective on State Street from $110.00 to $114.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 1st. Seven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, State Street has an average rating of "Moderate Buy" and an average target price of $112.82.

Insider Buying and Selling at State Street

In other news, EVP Michael L. Richards sold 990 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total value of $108,197.10. Following the transaction, the executive vice president directly owned 41,332 shares of the company's stock, valued at approximately $4,517,174.28. This represents a 2.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.29% of the company's stock.

About State Street

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody, accounting, regulatory reporting, investor, and performance and analytics; middle office products, such as IBOR, transaction management, loans, cash, derivatives and collateral, record keeping, and client reporting and investment analytics; finance leasing; foreign exchange, and brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.

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