State Street (NYSE:STT) Hits New 1-Year High - Here's What Happened

Key Points

• State Street Corporation recently reached a new 52-week high of $113.90, indicating strong trading activity with 191,784 shares exchanged.
• Several analysts have raised their price targets for State Street, with Goldman Sachs increasing its target to $111.00, while the consensus rating remains a "Hold."
• The company announced an increase in its quarterly dividend to $0.84 per share, reflecting an annual yield of 2.95% and a positive change from the previous $0.76 dividend.

State Street Corporation (NYSE:STT - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $113.90 and last traded at $113.72, with a volume of 191784 shares changing hands. The stock had previously closed at $113.25.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Wells Fargo & Company raised their price objective on State Street from $113.00 to $121.00 and gave the company an "overweight" rating in a report on Tuesday, July 8th. Citigroup raised their price objective on State Street from $100.00 to $115.00 and gave the company a "neutral" rating in a report on Wednesday, July 2nd. Cfra Research raised State Street from a "hold" rating to a "moderate buy" rating in a report on Tuesday, July 15th. The Goldman Sachs Group raised their price objective on State Street from $98.00 to $111.00 and gave the company a "buy" rating in a report on Wednesday, July 2nd. Finally, Keefe, Bruyette & Woods cut their price objective on State Street from $118.00 to $113.00 and set an "outperform" rating on the stock in a report on Monday, April 21st. One investment analyst has rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $112.00.

State Street Price Performance

The company has a market capitalization of $30.89 billion, a price-to-earnings ratio of 12.14, a P/E/G ratio of 1.26 and a beta of 1.45. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.57 and a current ratio of 0.57. The business has a 50 day moving average price of $103.86 and a 200-day moving average price of $96.14.

State Street (NYSE:STT - Get Free Report) last issued its earnings results on Tuesday, July 15th. The asset manager reported $2.53 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 during the quarter, compared to analyst estimates of $3.33 billion. During the same period in the previous year, the company posted $2.15 EPS. The firm's revenue was up 2.9% compared to the same quarter last year. Research analysts predict that State Street Corporation will post 9.68 EPS for the current fiscal year.

State Street Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Wednesday, October 1st will be issued a dividend of $0.84 per share. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $3.36 dividend on an annualized basis and a yield of 3.1%. This is an increase from State Street's previous quarterly dividend of $0.76. State Street's dividend payout ratio is presently 37.63%.

Insider Buying and Selling

In other State Street news, CAO Elizabeth Schaefer sold 1,300 shares of the business's stock in a transaction that occurred on Tuesday, May 6th. The stock was sold at an average price of $90.72, for a total transaction of $117,936.00. Following the completion of the sale, the chief accounting officer directly owned 7,354 shares of the company's stock, valued at approximately $667,154.88. The trade was a 15.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Michael L. Richards sold 990 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total value of $108,197.10. Following the sale, the executive vice president directly owned 41,332 shares of the company's stock, valued at $4,517,174.28. This represents a 2.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.29% of the company's stock.

Institutional Trading of State Street

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. increased its holdings in State Street by 9.0% during the 1st quarter. Invesco Ltd. now owns 8,184,690 shares of the asset manager's stock worth $732,775,000 after purchasing an additional 674,120 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of State Street by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 7,193,687 shares of the asset manager's stock valued at $704,238,000 after acquiring an additional 24,617 shares in the last quarter. FMR LLC grew its holdings in shares of State Street by 14.2% in the fourth quarter. FMR LLC now owns 6,983,607 shares of the asset manager's stock valued at $685,441,000 after acquiring an additional 870,849 shares in the last quarter. Northern Trust Corp grew its holdings in shares of State Street by 2.8% in the first quarter. Northern Trust Corp now owns 4,264,161 shares of the asset manager's stock valued at $381,770,000 after acquiring an additional 115,751 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of State Street by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 3,068,867 shares of the asset manager's stock valued at $274,732,000 after acquiring an additional 14,011 shares in the last quarter. 87.44% of the stock is owned by institutional investors.

About State Street

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.