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

Key Points

• State Street has a “Moderate Buy” consensus from 15 analysts, with an average 1-year price target of about $158.57. Recent updates from firms like Goldman Sachs, Keefe, Bruyette & Woods, and Argus were generally constructive, with several raising targets.
• The company delivered a strong quarterly earnings beat, reporting $2.84 EPS versus the $2.64 estimate and revenue of $3.80 billion, up 15.6% year over year. Analysts now expect State Street to earn $12.35 per share for the current fiscal year.
• State Street also announced a quarterly dividend of $0.84 per share, which implies an annualized payout of $3.36 and a yield of about 2.1%. The dividend is payable July 13 to shareholders of record on July 1.

State Street Corporation (NYSE:STT - Get Free Report) has received a consensus rating of "Moderate Buy" from the fifteen analysts that are covering the stock, Marketbeat reports. Four analysts have rated the stock with a hold recommendation, eight have assigned a buy recommendation and three have assigned a strong buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $158.5667.

A number of equities research analysts have recently issued reports on STT shares. JPMorgan Chase & Co. boosted their price target on shares of State Street from $137.50 to $158.50 and gave the company a "neutral" rating in a report on Monday, May 11th. The Goldman Sachs Group boosted their target price on shares of State Street from $152.00 to $168.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Royal Bank Of Canada boosted their target price on shares of State Street from $135.00 to $155.00 and gave the company a "sector perform" rating in a research note on Monday, April 20th. Keefe, Bruyette & Woods lifted their price target on State Street from $157.00 to $175.00 and gave the company an "outperform" rating in a report on Monday, April 20th. Finally, Argus lifted their price target on State Street from $140.00 to $168.00 and gave the company a "buy" rating in a report on Tuesday, April 21st.

Insider Buying and Selling at State Street

In related news, CEO Hanley Ronald P. O sold 14,553 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $155.35, for a total transaction of $2,260,808.55. Following the completion of the sale, the chief executive officer directly owned 255,512 shares in the company, valued at approximately $39,693,789.20. This trade represents a 5.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Plansky sold 16,100 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $124.32, for a total transaction of $2,001,552.00. Following the sale, the executive vice president owned 56,162 shares of the company's stock, valued at approximately $6,982,059.84. This represents a 22.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 52,476 shares of company stock valued at $7,624,925 in the last ninety days. Company insiders own 0.27% of the company's stock.

Institutional Trading of State Street

Institutional investors have recently made changes to their positions in the stock. Regents of The University of California raised its position in shares of State Street by 211.2% in the fourth quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager's stock valued at $1,123,186,000 after purchasing an additional 5,908,370 shares during the period. Norges Bank bought a new position in shares of State Street in the fourth quarter valued at approximately $303,483,000. Pinebridge Investments LLC bought a new position in shares of State Street in the fourth quarter valued at approximately $178,705,000. Victory Capital Management Inc. raised its position in shares of State Street by 30.8% in the fourth quarter. Victory Capital Management Inc. now owns 4,559,546 shares of the asset manager's stock valued at $588,227,000 after purchasing an additional 1,074,174 shares during the period. Finally, Two Sigma Investments LP raised its position in shares of State Street by 261.0% in the third quarter. Two Sigma Investments LP now owns 1,217,802 shares of the asset manager's stock valued at $141,277,000 after purchasing an additional 880,507 shares during the period. 87.44% of the stock is currently owned by institutional investors and hedge funds.

State Street Stock Performance

NYSE:STT opened at $158.19 on Thursday. State Street has a twelve month low of $95.61 and a twelve month high of $161.79. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 1.04. The company has a 50-day moving average of $145.54 and a 200-day moving average of $133.15. The firm has a market cap of $43.78 billion, a price-to-earnings ratio of 16.04, a price-to-earnings-growth ratio of 0.87 and a beta of 1.43.

State Street (NYSE:STT - Get Free Report) last announced its earnings results on Friday, April 17th. The asset manager reported $2.84 EPS for the quarter, topping the consensus estimate of $2.64 by $0.20. State Street had a net margin of 13.47% and a return on equity of 14.22%. The company had revenue of $3.80 billion during the quarter, compared to analysts' expectations of $3.59 billion. During the same period last year, the company posted $2.04 earnings per share. The business's revenue for the quarter was up 15.6% on a year-over-year basis. Analysts forecast that State Street will post 12.35 earnings per share for the current fiscal year.

State Street Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 13th. Stockholders of record on Wednesday, July 1st will be issued a dividend of $0.84 per share. The ex-dividend date is Wednesday, July 1st. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.1%. State Street's payout ratio is currently 34.08%.

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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