State Street (NYSE:STT) Sets New 52-Week High - Here's Why

Key Points

• State Street Corporation (NYSE:STT) shares reached a new 52-week high of $116.69, closing at $116.04, with significant trading volume.
• Analysts have shown a positive outlook, with a consensus rating of "Moderate Buy" and an average price target of $118.55 from 13 equity research analysts.
• The company will pay an increased quarterly dividend of $0.84 on October 14, representing a 2.9% dividend yield and up from a previous quarterly dividend of $0.76.

State Street Corporation (NYSE:STT - Get Free Report) shares hit a new 52-week high during trading on Monday . The company traded as high as $116.69 and last traded at $116.04, with a volume of 105066 shares traded. The stock had previously closed at $115.71.

Wall Street Analyst Weigh In

A number of brokerages recently commented on STT. TD Cowen began coverage on State Street in a research note on Thursday. They set a "buy" rating for the company. Bank of America upped their price objective on State Street from $106.00 to $109.00 and gave the stock an "underperform" rating in a research note on Wednesday, July 16th. The Goldman Sachs Group upped their price objective on State Street from $98.00 to $111.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Wells Fargo & Company upped their price objective on State Street from $113.00 to $121.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. Finally, Truist Financial upped their price objective on State Street from $116.00 to $125.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. Nine equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $118.55.

State Street Stock Performance

The company has a debt-to-equity ratio of 1.09, a current ratio of 0.57 and a quick ratio of 0.57. The firm has a market cap of $32.97 billion, a price-to-earnings ratio of 13.01, a price-to-earnings-growth ratio of 1.13 and a beta of 1.50. The company has a fifty day moving average price of $112.32 and a two-hundred day moving average price of $100.59.

State Street (NYSE:STT - Get Free Report) last announced its quarterly earnings data on Tuesday, July 15th. The asset manager reported $2.53 earnings per share for the quarter, beating the consensus estimate of $2.36 by $0.17. The business had revenue of $3.47 billion during the quarter, compared to analyst estimates of $3.33 billion. State Street had a return on equity of 12.96% and a net margin of 12.59%.The company's revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.15 earnings per share. As a group, equities research analysts expect 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. Stockholders of record on Wednesday, October 1st will be issued a $0.84 dividend. This represents a $3.36 annualized dividend and a dividend yield of 2.9%. This is a positive change from State Street's previous quarterly dividend of $0.76. The ex-dividend date is Wednesday, October 1st. State Street's payout ratio is currently 34.04%.

Insider Buying and Selling at State Street

In other news, EVP Michael L. Richards sold 990 shares of the company's stock in a transaction 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 completion of the sale, the executive vice president owned 41,332 shares in the company, valued at $4,517,174.28. This represents a 2.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 0.29% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On State Street

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. raised its position in shares of State Street by 4.7% during the second quarter. Invesco Ltd. now owns 8,566,237 shares of the asset manager's stock worth $910,934,000 after purchasing an additional 381,547 shares during the period. Dodge & Cox raised its position in shares of State Street by 1.1% during the second quarter. Dodge & Cox now owns 7,412,414 shares of the asset manager's stock worth $788,236,000 after purchasing an additional 80,855 shares during the period. Geode Capital Management LLC raised its position in shares of State Street by 0.4% during the second quarter. Geode Capital Management LLC now owns 7,412,130 shares of the asset manager's stock worth $784,930,000 after purchasing an additional 27,098 shares during the period. Northern Trust Corp raised its position in shares of State Street by 2.8% during the first quarter. Northern Trust Corp now owns 4,264,161 shares of the asset manager's stock worth $381,770,000 after purchasing an additional 115,751 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of State Street by 0.5% during the first quarter. Dimensional Fund Advisors LP now owns 3,068,867 shares of the asset manager's stock worth $274,732,000 after purchasing an additional 14,011 shares during the period. 87.44% of the stock is owned by institutional investors and hedge funds.

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.

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