State Street (NYSE:STT) Sets New 1-Year High - Should You Buy?

Key Points

• State Street Corporation's stock reached a new 52-week high, trading at $116.37, and some analysts have upgraded their ratings, indicating a potential positive outlook.
• The company announced an increase in its quarterly dividend to $0.84 per share, up from $0.76, representing an annual yield of 2.9%.
• State Street reported EPS of $2.53, beating expectations, with quarterly revenue also surpassing analyst predictions, highlighting a year-over-year growth.

Shares of State Street Corporation (NYSE:STT - Get Free Report) hit a new 52-week high on Thursday . The company traded as high as $116.37 and last traded at $114.98, with a volume of 1724646 shares changing hands. The stock had previously closed at $115.82.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Cfra Research raised shares of State Street from a "hold" rating to a "moderate buy" rating in a research report on Tuesday, July 15th. Wells Fargo & Company lifted their price target on shares of State Street from $113.00 to $121.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Bank of America lifted their price target on shares of State Street from $106.00 to $109.00 and gave the stock an "underperform" rating in a research note on Wednesday, July 16th. Truist Financial boosted their target price on shares of State Street from $116.00 to $125.00 and gave the company a "buy" rating in a research note on Thursday, August 14th. Finally, The Goldman Sachs Group upped their price target on shares of State Street from $98.00 to $111.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Seven investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $112.82.

State Street Stock Down 0.7%

The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 1.09. The company has a market capitalization of $32.62 billion, a PE ratio of 12.88, a price-to-earnings-growth ratio of 1.14 and a beta of 1.48. The business's 50 day simple moving average is $109.44 and its 200 day simple moving average is $97.80.

State Street (NYSE:STT - Get Free Report) last posted its quarterly earnings data on Tuesday, July 15th. The asset manager reported $2.53 EPS for the quarter, beating analysts' consensus estimates of $2.36 by $0.17. The company had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.33 billion. State Street had a net margin of 12.59% and a return on equity of 12.96%. The business's quarterly revenue was up 2.9% on a year-over-year basis. During the same period in the prior year, the firm earned $2.15 earnings per share. As a group, analysts forecast that State Street Corporation will post 9.68 EPS for the current year.

State Street Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Wednesday, October 1st will be issued a $0.84 dividend. This is an increase from State Street's previous quarterly dividend of $0.76. This represents a $3.36 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Wednesday, October 1st. State Street's dividend payout ratio is currently 34.04%.

Insider Buying and Selling

In other State Street news, EVP Michael L. Richards sold 990 shares of the stock in a transaction that occurred on Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total transaction of $108,197.10. Following the transaction, the executive vice president owned 41,332 shares in the company, valued at $4,517,174.28. This trade represents a 2.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.29% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On State Street

Several hedge funds have recently modified their holdings of the business. First Pacific Financial bought a new position in State Street in the first quarter worth $25,000. Capital Analysts LLC grew its position in State Street by 3,914.3% during the 1st quarter. Capital Analysts LLC now owns 281 shares of the asset manager's stock worth $25,000 after acquiring an additional 274 shares during the last quarter. Larson Financial Group LLC grew its position in State Street by 40.8% during the 1st quarter. Larson Financial Group LLC now owns 407 shares of the asset manager's stock worth $36,000 after acquiring an additional 118 shares during the last quarter. AlphaCore Capital LLC raised its holdings in shares of State Street by 103.5% in the second quarter. AlphaCore Capital LLC now owns 468 shares of the asset manager's stock valued at $50,000 after buying an additional 238 shares during the last quarter. Finally, Golden State Wealth Management LLC raised its holdings in shares of State Street by 186.7% in the first quarter. Golden State Wealth Management LLC now owns 476 shares of the asset manager's stock valued at $43,000 after buying an additional 310 shares during the last quarter. 87.44% of the stock is owned by institutional investors.

State Street Company Profile

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.

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