State Street (NYSE:STT) Releases Quarterly Earnings Results, Beats Estimates By $0.35 EPS

Key Points

• State Street beat quarterly expectations with earnings of $3.65 per share versus the $3.30 consensus estimate, and revenue of $4.05 billion topped forecasts of $3.88 billion.
• The company also raised its quarterly dividend to $0.92 per share from $0.84, implying an annualized payout of $3.68 and a 2.0% yield.
• Analyst sentiment remains mostly positive, with several firms lifting price targets and the stock carrying an average “Moderate Buy” rating and consensus target of $173.91.

State Street (NYSE:STT - Get Free Report) issued its quarterly earnings data on Thursday. The asset manager reported $3.65 earnings per share for the quarter, beating analysts' consensus estimates of $3.30 by $0.35, FiscalAI reports. The business had revenue of $4.05 billion during the quarter, compared to analysts' expectations of $3.88 billion. State Street had a return on equity of 14.22% and a net margin of 13.47%.

State Street Price Performance

STT stock opened at $186.88 on Thursday. The business's 50-day moving average is $164.44 and its two-hundred day moving average is $143.46. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.57 and a quick ratio of 0.57. The firm has a market capitalization of $51.72 billion, a P/E ratio of 18.95, a P/E/G ratio of 0.95 and a beta of 1.42. State Street has a 1 year low of $102.81 and a 1 year high of $186.99.

State Street Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be given a $0.92 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $3.68 dividend on an annualized basis and a yield of 2.0%. This is an increase from State Street's previous quarterly dividend of $0.84. State Street's dividend payout ratio is 34.08%.

Analysts Set New Price Targets

A number of equities analysts recently commented on STT shares. Morgan Stanley raised their target price on State Street from $166.00 to $183.00 and gave the company an "overweight" rating in a report on Monday, June 29th. UBS Group set a $176.00 price target on shares of State Street in a research note on Friday, June 26th. Weiss Ratings raised shares of State Street from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, May 28th. Zacks Research lowered shares of State Street from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 22nd. Finally, Wells Fargo & Company lifted their price objective on shares of State Street from $171.00 to $196.00 and gave the company an "overweight" rating in a report on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, State Street presently has an average rating of "Moderate Buy" and a consensus price target of $173.91.

Insider Buying and Selling

In other State Street news, COO Mostapha Tahiri sold 9,611 shares of the stock in a transaction that occurred on 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 sale, the chief operating officer directly owned 64,642 shares of the company's stock, valued at approximately $9,885,701.06. This represents a 12.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Hanley Ronald P. O sold 14,553 shares of the firm's stock in a transaction 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 owned 255,512 shares in the company, valued at $39,693,789.20. The trade was a 5.39% decrease in their ownership of the stock. 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. In the last ninety days, insiders sold 37,876 shares of company stock valued at $5,866,583. Corporate insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On State Street

Several large investors have recently bought and sold shares of STT. JPL Wealth Management LLC acquired a new position in shares of State Street during the 3rd quarter worth about $29,000. Wilkerson Advisory Group LLC acquired a new stake in shares of State Street during the 4th quarter worth about $29,000. Measured Wealth Private Client Group LLC acquired a new stake in shares of State Street during the 3rd quarter worth about $35,000. Transamerica Financial Advisors LLC lifted its stake in State Street by 78.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 344 shares of the asset manager's stock worth $44,000 after purchasing an additional 151 shares during the last quarter. Finally, DV Equities LLC purchased a new stake in State Street during the fourth quarter worth approximately $51,000. Hedge funds and other institutional investors own 87.44% of the company's stock.

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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