State Street Corporation (NYSE:STT) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• State Street Corporation has received a consensus recommendation of "Moderate Buy" from thirteen brokerages, with an average one-year target price of $114.18.
• The company recently reported earnings of $2.53 per share, exceeding analysts' expectations, and announced a dividend increase to $0.84 per share, representing a yield of 2.9%.
• Several institutional investors, including Invesco Ltd. and Dodge & Cox, have increased their holdings in State Street, reflecting confidence in the company's performance.

Shares of State Street Corporation (NYSE:STT - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the thirteen brokerages that are presently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, three have given a hold recommendation and nine have issued a buy recommendation on the company. The average 1 year target price among analysts that have issued ratings on the stock in the last year is $114.1818.

A number of brokerages have recently weighed in on STT. Wells Fargo & Company increased their price target on shares of State Street from $113.00 to $121.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Cfra Research raised shares of State Street from a "hold" rating to a "moderate buy" rating in a research report on Tuesday, July 15th. Evercore ISI raised their price objective on State Street from $102.00 to $115.00 and gave the stock an "outperform" rating in a report on Wednesday, July 2nd. Morgan Stanley lifted their target price on shares of State Street from $110.00 to $114.00 and gave the company an "overweight" rating in a report on Tuesday, July 1st. Finally, Bank of America increased their price objective on shares of State Street from $106.00 to $109.00 and gave the company an "underperform" rating in a research report on Wednesday, July 16th.

Insider Activity

In other State Street news, EVP Michael L. Richards sold 990 shares of the firm's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $109.29, for a total value of $108,197.10. Following the transaction, the executive vice president owned 41,332 shares of the company's stock, valued at $4,517,174.28. This trade represents a 2.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.29% of the company's stock.

Hedge Funds Weigh In On State Street

A number of institutional investors and hedge funds have recently bought and sold shares of STT. Invesco Ltd. lifted its position in shares of State Street by 4.7% during the 2nd quarter. Invesco Ltd. now owns 8,566,237 shares of the asset manager's stock valued at $910,934,000 after acquiring an additional 381,547 shares during the last quarter. Dodge & Cox boosted its position in shares of State Street by 1.1% in the 2nd quarter. Dodge & Cox now owns 7,412,414 shares of the asset manager's stock valued at $788,236,000 after purchasing an additional 80,855 shares during the period. Geode Capital Management LLC boosted its position in shares of State Street by 0.4% in the 2nd quarter. Geode Capital Management LLC now owns 7,412,130 shares of the asset manager's stock valued at $784,930,000 after purchasing an additional 27,098 shares during the period. Northern Trust Corp increased its stake in State Street by 2.8% in 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 in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in State Street by 0.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,068,867 shares of the asset manager's stock worth $274,732,000 after buying an additional 14,011 shares during the period. Institutional investors own 87.44% of the company's stock.

State Street Price Performance

STT stock opened at $115.64 on Friday. The company has a market capitalization of $32.81 billion, a P/E ratio of 12.95, a PEG ratio of 1.12 and a beta of 1.50. The business has a 50 day simple moving average of $112.32 and a 200-day simple moving average of $100.38. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 1.09. State Street has a twelve month low of $72.81 and a twelve month high of $116.37.

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

State Street Increases Dividend

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

State Street Company Profile

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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