State Street Stock Rating Reaffirmed by Zacks (STT)
State Street (NYSE:STT)‘s stock had its “neutral” rating reaffirmed by Zacks in a research report issued to clients and investors on Thursday. They currently have a $70.00 price target on the stock. Zacks‘s target price would suggest a potential upside of 5.69% from the stock’s previous close.
Zacks’ analyst wrote, “State Street’s first-quarter 2014 earnings missed the Zacks Consensus Estimate owing to higher operating expenses and decline in net interest revenue. However, growth in fee revenues and improvement in asset position and capital ratios were the tailwinds. We anticipate the company to benefit from its cost-saving program and product diversification going forward. Further, the company is well positioned to grow organically driven by healthy core servicing and investment management franchises. However, a still low-interest rate environment, deteriorating net interest margin and mounting operating expenses are expected to dent the company’s performance in the upcoming quarters. Despite these concerns, enhanced capital deployment activities are anticipated to boost investors’ confidence in the stock. “
Shares of State Street (NYSE:STT) traded down 0.38% on Thursday, hitting $66.23. 1,926,288 shares of the company’s stock traded hands. State Street has a 1-year low of $62.67 and a 1-year high of $76.24. The stock’s 50-day moving average is $65.01 and its 200-day moving average is $68.19. The company has a market cap of $28.507 billion and a price-to-earnings ratio of 14.90.
State Street (NYSE:STT) last released its earnings data on Friday, April 25th. The company reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.00 by $0.19. The company had revenue of $2.49 billion for the quarter, compared to the consensus estimate of $2.53 billion. During the same quarter in the previous year, the company posted $0.96 earnings per share. The company’s revenue for the quarter was up 3.6% on a year-over-year basis. Analysts expect that State Street will post $4.80 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, July 16th. Stockholders of record on Tuesday, July 1st will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.81%. The ex-dividend date of this dividend is Friday, June 27th. This is a boost from State Street’s previous quarterly dividend of $0.26.
A number of other firms have also recently commented on STT. Analysts at Deutsche Bank initiated coverage on shares of State Street in a research note on Thursday, May 22nd. They set a “hold” rating and a $67.00 price target on the stock. Separately, analysts at JPMorgan Chase & Co. reiterated a “neutral” rating on shares of State Street in a research note on Friday, May 9th. They now have a $72.00 price target on the stock, down previously from $73.00. Finally, analysts at Portales Partners initiated coverage on shares of State Street in a research note on Wednesday, May 7th. They set a “sector perform” rating on the stock. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. State Street has an average rating of “Buy” and a consensus target price of $74.50.
State Street Corporation (NYSE:STT) is a financial holding company.
To view Zacks’ full report, visit Zacks’ official website.
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