State Street (NYSE:STT) Sets New 52-Week High After Analyst Upgrade

Key Points

• Shares of State Street hit a new 52-week high after Morgan Stanley raised its price target to $166 and maintained an overweight rating.
• State Street beat Q1 estimates (EPS $2.84 vs. $2.64; revenue $3.80B vs. $3.59B), prompting multiple analyst upgrades and a consensus rating of "Moderate Buy" with a $152.92 consensus price target.
• EVP John Plansky sold 16,100 shares (reducing his stake by 22.28%); insiders own just 0.29% of the stock while institutional investors hold about 87.44%.

Shares of State Street Corporation (NYSE:STT - Get Free Report) reached a new 52-week high on Tuesday after Morgan Stanley raised their price target on the stock from $155.00 to $166.00. Morgan Stanley currently has an overweight rating on the stock. State Street traded as high as $150.27 and last traded at $150.0350, with a volume of 3088585 shares traded. The stock had previously closed at $145.43.

Several other research firms have also recently weighed in on STT. Loop Capital set a $144.00 target price on State Street in a research note on Tuesday, January 6th. Bank of America raised State Street from an "underperform" rating to a "neutral" rating and set a $143.00 price target on the stock in a research report on Monday, April 6th. Royal Bank Of Canada lifted their price target on State Street from $135.00 to $155.00 and gave the stock a "sector perform" rating in a research report on Monday. Keefe, Bruyette & Woods lifted their price target on State Street from $157.00 to $175.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, The Goldman Sachs Group lifted their price target on State Street from $152.00 to $168.00 and gave the stock a "buy" rating in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $152.92.

Insider Buying and Selling at State Street

In related news, EVP John Plansky sold 16,100 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $124.32, for a total transaction of $2,001,552.00. Following the completion of the sale, the executive vice president directly owned 56,162 shares of the company's stock, valued at $6,982,059.84. This trade represents a 22.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.29% of the stock is currently owned by corporate insiders.

Trending Headlines about State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: Q1 was called a "blockbuster" by RBC after State Street reported stronger-than-expected results and a roughly 20% ROTCE, prompting analyst upgrades and helping lift momentum for the stock. State Street Had A 'Blockbuster' Q1, Analyst Says
• Positive Sentiment: Several analysts raised forecasts and price targets after STT beat Q1 estimates on both EPS and revenue, pushing upward consensus expectations and supporting near-term upside. These Analysts Increase Their Forecasts On State Street After Better-Than-Expected Q1 Earnings
• Positive Sentiment: Zacks upgraded STT to a Rank #2 (Buy), reflecting stronger earnings prospects and likely contributing to buying interest. State Street (STT) Upgraded to Buy: What Does It Mean for the Stock?
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target to $175 with an Outperform rating, signaling substantial analyst conviction above current levels. Keefe, Bruyette & Woods Target Raise
• Positive Sentiment: Commentary urging investors not to take profits despite the rally suggests some strategists see more upside from improving fundamentals rather than a peak. Do Not Take Profits On State Street, Despite Its Impressive Rally
• Neutral Sentiment: Analysis pieces are revising the investment story and fair value for STT, which can recalibrate investor expectations but are neither a direct catalyst nor a negative signal by themselves. How The State Street (STT) Investment Story Is Shifting With New Targets And Fair Value
• Neutral Sentiment: Truist raised its target to $150 but kept a Hold rating, indicating some analysts see limited near-term upside from current levels despite better results. Truist Target Raise

Hedge Funds Weigh In On State Street

A number of large investors have recently bought and sold shares of the company. Ritholtz Wealth Management raised its position in State Street by 77.5% during the 1st quarter. Ritholtz Wealth Management now owns 9,757 shares of the asset manager's stock worth $1,235,000 after buying an additional 4,259 shares during the last quarter. Global Financial Private Client LLC raised its position in State Street by 3.5% during the 1st quarter. Global Financial Private Client LLC now owns 18,019 shares of the asset manager's stock worth $2,281,000 after buying an additional 603 shares during the last quarter. BTC Capital Management Inc. raised its position in State Street by 14.4% during the 1st quarter. BTC Capital Management Inc. now owns 33,069 shares of the asset manager's stock worth $4,185,000 after buying an additional 4,153 shares during the last quarter. Fifth Third Wealth Advisors LLC raised its position in State Street by 14.1% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 3,891 shares of the asset manager's stock worth $492,000 after buying an additional 480 shares during the last quarter. Finally, OP Asset Management Ltd purchased a new position in State Street during the 1st quarter worth $3,606,000. Hedge funds and other institutional investors own 87.44% of the company's stock.

State Street Price Performance

The stock has a fifty day moving average of $129.01 and a two-hundred day moving average of $125.29. The stock has a market cap of $41.57 billion, a price-to-earnings ratio of 15.22, a price-to-earnings-growth ratio of 0.93 and a beta of 1.37. The company has a quick ratio of 0.61, a current ratio of 0.57 and a debt-to-equity ratio of 1.04.

State Street (NYSE:STT - Get Free Report) last announced its quarterly earnings data on Friday, April 17th. The asset manager reported $2.84 earnings per share 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 firm had revenue of $3.80 billion for the quarter, compared to analyst estimates of $3.59 billion. During the same quarter in the prior year, the company posted $2.04 earnings per share. State Street's quarterly revenue was up 15.6% on a year-over-year basis. On average, equities research analysts anticipate that State Street Corporation will post 11.94 earnings per share for the current year.

State Street Announces Dividend

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