State Street Corporation (STT) Upgraded to “Buy” by Zacks Investment Research
State Street Corporation (NYSE:STT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The brokerage currently has a $111.00 price objective on the asset manager’s stock. Zacks Investment Research‘s target price suggests a potential upside of 11.93% from the stock’s current price.
According to Zacks, “Shares of State Street have significantly outperformed the industry, over the past six months. This performance was supported by the company’s impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Further, the company remains on track to improve efficiency through its multi-year restructuring plan. Though escalating expenses might hurt bottom-line growth, new business wins, synergies from GE Asset Management deal and easing margin pressure are likely to aid top-line growth. Moreover, given a solid capital position, the company is expected to continue with its capital deployment activities, thereby enhancing shareholder value.”
Other analysts have also recently issued research reports about the company. Buckingham Research reissued a “buy” rating and set a $107.00 price objective (up previously from $94.00) on shares of State Street Corporation in a report on Monday, July 10th. Goldman Sachs Group, Inc. (The) upgraded State Street Corporation from a “buy” rating to a “conviction-buy” rating and upped their target price for the stock from $92.00 to $100.00 in a research note on Wednesday, June 28th. Keefe, Bruyette & Woods set a $88.00 target price on State Street Corporation and gave the stock a “hold” rating in a research note on Saturday, July 1st. Royal Bank Of Canada restated a “hold” rating and issued a $86.00 target price on shares of State Street Corporation in a research note on Friday, June 23rd. Finally, Jefferies Group LLC restated a “hold” rating and issued a $100.00 target price on shares of State Street Corporation in a research note on Friday, September 15th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, five have assigned a buy rating and two have issued a strong buy rating to the company. State Street Corporation currently has a consensus rating of “Hold” and a consensus price target of $95.07.
State Street Corporation (STT) traded up 0.19% on Wednesday, reaching $99.36. The company’s stock had a trading volume of 816,265 shares. The firm has a 50 day moving average of $94.70 and a 200 day moving average of $88.32. State Street Corporation has a 12 month low of $68.16 and a 12 month high of $99.99. The firm has a market cap of $37.16 billion, a price-to-earnings ratio of 18.64 and a beta of 1.31.
State Street Corporation (NYSE:STT) last issued its quarterly earnings data on Wednesday, July 26th. The asset manager reported $1.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.57 by $0.10. The business had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.86 billion. State Street Corporation had a return on equity of 12.49% and a net margin of 19.97%. The firm’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.46 EPS. Analysts anticipate that State Street Corporation will post $6.17 earnings per share for the current year.
State Street Corporation declared that its board has authorized a stock buyback plan on Wednesday, June 28th that authorizes the company to buyback $1.40 billion in outstanding shares. This buyback authorization authorizes the asset manager to repurchase up to 4.2% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board believes its shares are undervalued.
In other news, Director Amelia C. Fawcett sold 5,000 shares of the business’s stock in a transaction dated Friday, July 28th. The stock was sold at an average price of $93.38, for a total value of $466,900.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Andrew Erickson sold 353 shares of the business’s stock in a transaction dated Wednesday, August 16th. The shares were sold at an average price of $93.01, for a total value of $32,832.53. Following the completion of the transaction, the insider now owns 21,170 shares in the company, valued at $1,969,021.70. The disclosure for this sale can be found here. Insiders have sold 8,814 shares of company stock worth $820,385 over the last quarter. 0.71% of the stock is owned by company insiders.
Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in shares of State Street Corporation by 1.9% in the second quarter. Vanguard Group Inc. now owns 24,022,695 shares of the asset manager’s stock valued at $2,155,556,000 after acquiring an additional 448,658 shares in the last quarter. BlackRock Inc. lifted its position in shares of State Street Corporation by 2,256.7% in the first quarter. BlackRock Inc. now owns 20,603,959 shares of the asset manager’s stock worth $1,640,284,000 after buying an additional 19,729,678 shares in the last quarter. FMR LLC lifted its position in shares of State Street Corporation by 10.8% in the second quarter. FMR LLC now owns 19,988,755 shares of the asset manager’s stock worth $1,793,591,000 after buying an additional 1,940,536 shares in the last quarter. Longview Partners Guernsey LTD lifted its position in shares of State Street Corporation by 76.9% in the second quarter. Longview Partners Guernsey LTD now owns 7,569,482 shares of the asset manager’s stock worth $679,210,000 after buying an additional 3,290,082 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC lifted its position in shares of State Street Corporation by 9.0% in the first quarter. Hotchkis & Wiley Capital Management LLC now owns 5,262,504 shares of the asset manager’s stock worth $418,948,000 after buying an additional 432,832 shares in the last quarter. Institutional investors and hedge funds own 87.42% of the company’s stock.
State Street Corporation Company Profile
State Street Corporation is a financial holding company. The Company operates through two lines of business: Investment Servicing and Investment Management. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors across the world.
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