Zacks Research Boosts Earnings Estimates for State Street

Key Points

• Zacks Research has increased its Q3 2027 EPS estimate for State Street Corporation to $3.04 from a previous forecast of $2.95.
• The company recently declared a quarterly dividend of $0.84 per share, up from $0.76, reflecting a dividend yield of 3.0%.
• State Street received varied ratings from multiple research firms, with Morgan Stanley maintaining an "overweight" rating and setting a target price of $162.00.

State Street Corporation (NYSE:STT - Free Report) - Zacks Research increased their Q3 2027 earnings per share (EPS) estimates for State Street in a report released on Monday, September 29th. Zacks Research analyst Team now anticipates that the asset manager will post earnings of $3.04 per share for the quarter, up from their previous forecast of $2.95. The consensus estimate for State Street's current full-year earnings is $9.68 per share.

Several other research firms have also issued reports on STT. Morgan Stanley reiterated an "overweight" rating and issued a $162.00 target price on shares of State Street in a research note on Monday. Cfra Research upgraded State Street from a "hold" rating to a "moderate buy" rating in a research note on Tuesday, July 15th. The Goldman Sachs Group set a $128.00 target price on State Street in a research note on Tuesday. TD Cowen started coverage on State Street in a research note on Thursday, September 25th. They issued a "buy" rating on the stock. Finally, Bank of America lifted their target price on State Street from $106.00 to $109.00 and gave the company an "underperform" rating in a research note on Wednesday, July 16th. Nine 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 stock. Based on data from MarketBeat, State Street currently has a consensus rating of "Moderate Buy" and an average target price of $121.27.

State Street Price Performance

STT opened at $113.43 on Thursday. The business's 50-day moving average is $112.68 and its two-hundred day moving average is $101.00. State Street has a 1 year low of $72.81 and a 1 year high of $118.06. 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 capitalization of $32.18 billion, a PE ratio of 12.70, a price-to-earnings-growth ratio of 1.13 and a beta of 1.46.

State Street (NYSE:STT - Get Free Report) last posted its earnings results on Tuesday, July 15th. The asset manager reported $2.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.36 by $0.17. State Street had a return on equity of 12.96% and a net margin of 12.59%.The company had revenue of $3.47 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same quarter in the previous year, the firm earned $2.15 earnings per share. The firm's quarterly revenue was up 2.9% compared to the same quarter last year.

Institutional Investors Weigh In On State Street

Large investors have recently bought and sold shares of the company. Assetmark Inc. boosted its position in State Street by 61.9% in the first quarter. Assetmark Inc. now owns 934 shares of the asset manager's stock valued at $84,000 after buying an additional 357 shares during the last quarter. Principal Financial Group Inc. boosted its position in State Street by 1.6% in the first quarter. Principal Financial Group Inc. now owns 339,406 shares of the asset manager's stock valued at $30,387,000 after buying an additional 5,242 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its position in State Street by 127.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 30,710 shares of the asset manager's stock valued at $2,728,000 after buying an additional 17,201 shares during the last quarter. Index Fund Advisors Inc. purchased a new stake in State Street in the first quarter valued at approximately $505,000. Finally, Bank of New York Mellon Corp boosted its position in State Street by 6.0% in the first quarter. Bank of New York Mellon Corp now owns 2,186,569 shares of the asset manager's stock valued at $195,764,000 after buying an additional 123,259 shares during the last quarter. Hedge funds and other institutional investors own 87.44% of the company's stock.

Insider Buying and Selling at State Street

In other news, EVP Michael L. Richards sold 990 shares of the business's stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $109.29, for a total transaction of $108,197.10. Following the sale, the executive vice president owned 41,332 shares in the company, valued at approximately $4,517,174.28. The trade was a 2.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.29% of the company's stock.

State Street Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Stockholders of record on Wednesday, October 1st will be paid a dividend of $0.84 per share. The ex-dividend date is Wednesday, October 1st. This is a positive change from State Street's previous quarterly dividend of $0.76. This represents a $3.36 dividend on an annualized basis and a dividend yield of 3.0%. State Street's payout ratio is presently 34.04%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.