State Street (STT) Rating Lowered to Hold at Zacks Investment Research
State Street (NYSE:STT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday. They currently have a $109.00 price objective on the asset manager’s stock. Zacks Investment Research‘s target price suggests a potential upside of 10.68% from the stock’s current price.
According to Zacks, “Shares of State Street have outperformed the industry over the past 12 months. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. 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, declining total brokerage and other trading services revenue remain matters of concern in the near term. Further, mounting expenses are expected to hurt the bottom-line.”
A number of other equities research analysts have also recently commented on the company. Morgan Stanley raised their price target on State Street from $90.00 to $105.00 and gave the company an “equal weight” rating in a report on Tuesday, October 24th. Keefe, Bruyette & Woods raised State Street from a “market perform” rating to an “outperform” rating and set a $110.00 target price on the stock in a report on Tuesday, December 12th. Royal Bank of Canada reduced their target price on State Street from $104.00 to $95.00 and set a “sector perform” rating on the stock in a report on Tuesday, October 24th. Jefferies Group reaffirmed a “hold” rating and issued a $100.00 target price on shares of State Street in a report on Friday, September 15th. Finally, ValuEngine cut State Street from a “buy” rating to a “hold” rating in a report on Friday, November 10th. One research analyst has rated the stock with a sell rating, ten have given a hold rating, five have given a buy rating and two have given a strong buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $99.40.
State Street (NYSE:STT) last posted its quarterly earnings results on Monday, October 23rd. The asset manager reported $1.71 EPS for the quarter, beating the Zacks’ consensus estimate of $1.61 by $0.10. The business had revenue of $2.97 billion for the quarter, compared to analysts’ expectations of $2.94 billion. State Street had a return on equity of 13.03% and a net margin of 20.56%. The business’s quarterly revenue was up 7.7% on a year-over-year basis. During the same period last year, the firm earned $1.35 earnings per share. research analysts forecast that State Street will post 6.25 EPS for the current year.
In related news, insider Andrew Erickson sold 354 shares of State Street stock in a transaction dated Thursday, November 16th. The stock was sold at an average price of $92.00, for a total value of $32,568.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Chairman Joseph L. Hooley sold 25,000 shares of State Street stock in a transaction dated Wednesday, November 1st. The stock was 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. In the last quarter, insiders sold 28,724 shares of company stock valued at $2,659,741. 0.71% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Zions Bancorporation boosted its position in shares of State Street by 318.0% during the third quarter. Zions Bancorporation now owns 1,045 shares of the asset manager’s stock valued at $100,000 after buying an additional 795 shares during the period. Bronfman E.L. Rothschild L.P. boosted its position in shares of State Street by 15.3% during the second quarter. Bronfman E.L. Rothschild L.P. now owns 1,266 shares of the asset manager’s stock valued at $114,000 after buying an additional 168 shares during the period. Eagle Asset Management Inc. purchased a new position in shares of State Street during the second quarter valued at approximately $200,000. Sabal Trust CO purchased a new position in shares of State Street during the third quarter valued at approximately $201,000. Finally, Trustmark National Bank Trust Department purchased a new position in shares of State Street during the third quarter valued at approximately $204,000. Institutional investors own 88.12% of the company’s stock.
About State Street
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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