Zacks Investment Research Lowers State Street Corporation (STT) to Hold
State Street Corporation (NYSE:STT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Shares of State Street have outperformed the industry over the past six months. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. The company’s third quarter 2017 results benefited from higher revenues and rise in assets under management, partially offset by increase in expenses. New business wins, efforts to improve efficiency through its multi-year restructuring plan, synergies from GE Asset Management deal and easing margin pressure are likely to aid profitability. Also, its enhanced capital deployment activities and exposure in international markets keeps us encouraged. However, mounting expenses mainly owing to higher compensation and employee benefit costs are expected to hurt its bottom line. Further, a stretched valuation indicates limited upside potential for the stock.”
A number of other equities research analysts have also recently commented on STT. ValuEngine cut State Street Corporation from a “buy” rating to a “hold” rating in a research note on Friday, November 10th. Morgan Stanley increased their price objective on State Street Corporation from $90.00 to $105.00 and gave the company an “equal weight” rating in a report on Tuesday, October 24th. Royal Bank Of Canada cut their price objective on State Street Corporation from $104.00 to $95.00 and set a “sector perform” rating on the stock in a report on Tuesday, October 24th. Citigroup Inc. reaffirmed a “neutral” rating and set a $102.00 target price (up from $88.00) on shares of State Street Corporation in a report on Monday, October 9th. Finally, Jefferies Group LLC reaffirmed a “hold” rating and set a $100.00 target price on shares of State Street Corporation in a report on Friday, September 15th. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating, four have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $96.47.
State Street Corporation (NYSE:STT) last posted its quarterly earnings results on Monday, October 23rd. The asset manager reported $1.71 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.61 by $0.10. State Street Corporation had a return on equity of 13.03% and a net margin of 20.56%. The business had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.94 billion. During the same quarter in the prior year, the company earned $1.35 EPS. The business’s revenue was up 7.7% compared to the same quarter last year. equities analysts forecast that State Street Corporation will post 6.25 EPS for the current fiscal year.
In other news, insider Hannah M. Grove sold 3,200 shares of the firm’s stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $92.64, for a total value of $296,448.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Chairman Joseph L. Hooley sold 25,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $92.60, for a total value of $2,315,000.00. The disclosure for this sale can be found here. Company insiders own 0.71% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Ladenburg Thalmann Financial Services Inc. lifted its position in State Street Corporation by 24.9% during the third quarter. Ladenburg Thalmann Financial Services Inc. now owns 25,696 shares of the asset manager’s stock worth $2,455,000 after buying an additional 5,129 shares in the last quarter. Tiemann Investment Advisors LLC purchased a new position in State Street Corporation during the third quarter worth approximately $204,000. Cubist Systematic Strategies LLC lifted its position in State Street Corporation by 40.8% during the third quarter. Cubist Systematic Strategies LLC now owns 10,535 shares of the asset manager’s stock worth $1,007,000 after buying an additional 3,051 shares in the last quarter. Zions Bancorporation lifted its position in State Street Corporation by 318.0% during the third quarter. Zions Bancorporation now owns 1,045 shares of the asset manager’s stock worth $100,000 after buying an additional 795 shares in the last quarter. Finally, Capital International Investors lifted its position in State Street Corporation by 63.3% during the third quarter. Capital International Investors now owns 5,771,226 shares of the asset manager’s stock worth $551,383,000 after buying an additional 2,237,595 shares in the last quarter. Institutional investors and hedge funds own 88.15% of the company’s stock.
About State Street Corporation
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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