State Street Corporation (NYSE:STT) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• State Street has a consensus analyst rating of “Moderate Buy” from 14 brokerages, with an average 12-month price target of about $155.57.
• The company beat quarterly earnings expectations, reporting EPS of $2.84 versus estimates of $2.64, while revenue rose 15.6% year over year to $3.80 billion.
• Insiders recently sold shares, including COO Mostapha Tahiri and EVP Michael L. Richards, while institutional ownership remains high at 87.44%.

State Street Corporation (NYSE:STT - Get Free Report) has been given an average rating of "Moderate Buy" by the fourteen ratings firms that are currently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold recommendation, nine have issued a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $155.5714.

STT has been the topic of several recent analyst reports. Argus raised their target price on shares of State Street from $140.00 to $168.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Morgan Stanley upped their price target on shares of State Street from $155.00 to $166.00 and gave the stock an "overweight" rating in a report on Monday, April 20th. Royal Bank Of Canada increased their price target on shares of State Street from $135.00 to $155.00 and gave the stock a "sector perform" rating in a research report on Monday, April 20th. Truist Financial boosted their price objective on shares of State Street from $136.00 to $150.00 and gave the company a "hold" rating in a research report on Monday, April 20th. Finally, Evercore set a $158.00 target price on State Street and gave the stock an "outperform" rating in a research note on Monday, April 20th.

Insider Buying and Selling

In other news, COO Mostapha Tahiri sold 9,611 shares of the stock in a transaction dated Wednesday, April 22nd. The shares were sold at an average price of $152.93, for a total value of $1,469,810.23. Following the completion of the transaction, the chief operating officer owned 64,642 shares of the company's stock, valued at approximately $9,885,701.06. This represents a 12.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Michael L. Richards sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $153.89, for a total transaction of $461,670.00. Following the completion of the sale, the executive vice president owned 43,522 shares in the company, valued at approximately $6,697,600.58. The trade was a 6.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,711 shares of company stock worth $3,933,032 in the last ninety days. 0.27% of the stock is owned by insiders.

Hedge Funds Weigh In On State Street

Institutional investors have recently added to or reduced their stakes in the stock. Regents of The University of California boosted its position in 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 buying an additional 5,908,370 shares in the last quarter. Norges Bank bought a new stake in shares of State Street during the fourth quarter worth $303,483,000. Pinebridge Investments LLC acquired a new position in shares of State Street during the fourth quarter worth $178,705,000. Victory Capital Management Inc. increased its holdings in shares of State Street by 30.8% during the fourth quarter. Victory Capital Management Inc. now owns 4,559,546 shares of the asset manager's stock worth $588,227,000 after buying an additional 1,074,174 shares in the last quarter. Finally, Two Sigma Investments LP lifted its stake in shares of State Street by 261.0% in the 3rd quarter. Two Sigma Investments LP now owns 1,217,802 shares of the asset manager's stock valued at $141,277,000 after acquiring an additional 880,507 shares during the last quarter. 87.44% of the stock is currently owned by institutional investors and hedge funds.

State Street Stock Performance

NYSE:STT opened at $149.39 on Friday. The company has a market cap of $41.35 billion, a price-to-earnings ratio of 15.15, a PEG ratio of 0.82 and a beta of 1.45. State Street has a fifty-two week low of $93.69 and a fifty-two week high of $156.18. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.57 and a current ratio of 0.57. The stock has a fifty day moving average price of $134.10 and a 200-day moving average price of $128.11.

State Street (NYSE:STT - Get Free Report) last issued its quarterly earnings results on Friday, April 17th. The asset manager reported $2.84 EPS for the quarter, topping analysts' consensus estimates of $2.64 by $0.20. State Street had a return on equity of 14.22% and a net margin of 13.47%.The company had revenue of $3.80 billion for the quarter, compared to analysts' expectations of $3.59 billion. During the same quarter last year, the business earned $2.04 earnings per share. State Street's revenue was up 15.6% on a year-over-year basis. As a group, equities analysts anticipate that State Street will post 12.31 EPS for the current fiscal year.

State Street Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, April 13th. Stockholders of record on Wednesday, April 1st were issued a dividend of $0.84 per share. The ex-dividend date of this dividend was Wednesday, April 1st. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.2%. State Street's payout ratio is 34.08%.

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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