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

Key Points

• Analysts maintain a “Moderate Buy” consensus on State Street, with nine buys, two strong buys and five holds. The average 12-month price target is $185.38.
• State Street exceeded quarterly expectations, reporting EPS of $3.65 versus the $3.34 consensus and revenue of $4.05 billion, up 23.3% year over year.
• The company increased its quarterly dividend from $0.84 to $0.92 per share, implying an annualized dividend of $3.68 and a 1.9% yield.

Shares of State Street Corporation (NYSE:STT - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the sixteen analysts that are currently covering the firm, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold recommendation, nine have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $185.3750.

Several research analysts have weighed in on the stock. Keefe, Bruyette & Woods upped their target price on shares of State Street from $195.00 to $215.00 and gave the stock an "outperform" rating in a research report on Friday, July 17th. Citigroup lifted their price target on shares of State Street from $193.00 to $210.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Truist Financial reissued a "hold" rating and set a $191.00 price target (up from $176.00) on shares of State Street in a research note on Friday, July 17th. Morgan Stanley upped their price target on State Street from $183.00 to $195.00 and gave the stock an "overweight" rating in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. raised their price objective on State Street from $176.50 to $187.00 and gave the company a "neutral" rating in a research note on Tuesday, August 4th.

State Street Price Performance

Shares of NYSE STT opened at $193.48 on Tuesday. The firm has a market capitalization of $53.15 billion, a P/E ratio of 17.06, a PEG ratio of 0.79 and a beta of 1.41. State Street has a one year low of $104.64 and a one year high of $195.18. The company's fifty day moving average is $178.29 and its two-hundred day moving average is $152.35. 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 (NYSE:STT - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share for the quarter, topping analysts' consensus estimates of $3.34 by $0.31. The business had revenue of $4.05 billion for the quarter, compared to analysts' expectations of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. During the same period in the prior year, the company posted $2.04 EPS. The business's revenue for the quarter was up 23.3% on a year-over-year basis. Analysts forecast that State Street will post 13.75 EPS for the current fiscal year.

State Street Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be issued a $0.92 dividend. This represents a $3.68 annualized dividend and a yield of 1.9%. This is a positive change 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 is currently 29.63%.

Insider Buying and Selling at State Street

In other news, CEO Hanley Ronald P. O sold 14,553 shares of the firm's stock in a transaction on Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total value of $2,680,226.01. Following the completion of the transaction, the chief executive officer owned 240,959 shares in the company, valued at $44,377,419.03. This trade represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Bradford Hu sold 9,758 shares of State Street stock in a transaction on Friday, July 24th. The stock was sold at an average price of $184.52, for a total value of $1,800,546.16. Following the transaction, the executive vice president directly owned 49,794 shares of the company's stock, valued at $9,187,988.88. This trade represents a 16.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 49,576 shares of company stock valued at $8,415,875. Insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On State Street

Several hedge funds have recently added to or reduced their stakes in STT. Philadelphia Investment Partners LLC purchased a new stake in shares of State Street in the second quarter valued at about $26,000. Bell Investment Advisors Inc purchased a new position in shares of State Street during the 2nd quarter worth approximately $28,000. Wilkerson Advisory Group LLC purchased a new position in shares of State Street during the 4th quarter worth approximately $29,000. JPL Wealth Management LLC acquired a new position in shares of State Street during the 3rd quarter worth approximately $29,000. Finally, Phillip James Consulting Co. acquired a new position in shares of State Street during the 4th quarter worth approximately $30,000. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

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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