State Street (NYSE:STT) Sets New 12-Month High - Still a Buy?

Key Points

• State Street reached a new 52-week high of $195.93, supported by a “Moderate Buy” consensus rating, although the average analyst price target of $185.38 is below the current price.
• The company reported strong quarterly results, with earnings of $3.65 per share and revenue of $4.05 billion, both exceeding analyst estimates; revenue increased 23.3% year over year.
• State Street raised its quarterly dividend to $0.92 per share, equivalent to an annualized $3.68 payout and a 1.9% yield, while insiders have sold shares worth roughly $4.7 million over the past 90 days.

State Street Corporation (NYSE:STT - Get Free Report) reached a new 52-week high during trading on Thursday . The stock traded as high as $195.93 and last traded at $194.6710, with a volume of 49581 shares trading hands. The stock had previously closed at $193.62.

Analysts Set New Price Targets

STT has been the topic of several analyst reports. Royal Bank Of Canada boosted their price target on shares of State Street from $155.00 to $196.00 and gave the stock a "sector perform" rating in a research report on Friday, July 17th. Evercore set a $200.00 price objective on State Street in a report on Monday, July 20th. Truist Financial reaffirmed a "hold" rating and issued a $191.00 target price (up from $176.00) on shares of State Street in a research report on Friday, July 17th. Citigroup upped their target price on State Street from $193.00 to $210.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Finally, Barclays increased their price target on State Street from $165.00 to $200.00 and gave the company an "equal weight" rating in a research report on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $185.38.

State Street Trading Up 0.0%

The stock has a market cap of $53.19 billion, a price-to-earnings ratio of 17.08, a PEG ratio of 0.79 and a beta of 1.41. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. The business's 50 day simple moving average is $181.47 and its 200 day simple moving average is $155.25.

State Street (NYSE:STT - Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The asset manager reported $3.65 earnings per share for the quarter, topping the consensus estimate of $3.34 by $0.31. The company had revenue of $4.05 billion for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same period in the previous year, the business earned $2.04 EPS. On average, research analysts expect that State Street Corporation will post 13.75 EPS for the current fiscal year.

State Street Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 1.9%. This is a boost from State Street's previous quarterly dividend of $0.84. The ex-dividend date of this dividend is Thursday, October 1st. State Street's dividend payout ratio (DPR) is presently 32.45%.

Insider Buying and Selling at State Street

In related news, EVP Michael L. Richards sold 1,500 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the transaction, the executive vice president directly owned 41,827 shares of the company's stock, valued at approximately $6,781,829.78. The trade was a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Hanley Ronald P. O sold 14,553 shares of the firm'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 sale, the chief executive officer directly owned 240,959 shares of the company's stock, valued at $44,377,419.03. This represents a 5.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 25,811 shares of company stock worth $4,723,982 over the last 90 days. Company insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On State Street

Several large investors have recently modified their holdings of the stock. Philadelphia Investment Partners LLC acquired a new position in State Street in the 2nd quarter valued at about $26,000. Bell Investment Advisors Inc acquired a new stake in State Street during the second quarter worth approximately $28,000. Wilkerson Advisory Group LLC acquired a new stake in State Street during the fourth quarter worth approximately $29,000. JPL Wealth Management LLC bought a new stake in shares of State Street during the third quarter worth approximately $29,000. Finally, Phillip James Consulting Co. bought a new stake in shares of State Street during the fourth quarter worth approximately $30,000. 87.44% of the stock is owned by institutional investors.

About State Street

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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