Bank of New York Mellon Corp Reduces Position in State Street Corporation $STT

Bank of New York Mellon Corp lessened its stake in shares of State Street Corporation (NYSE:STT) by 6.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,890,579 shares of the asset manager’s stock after selling 121,509 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.68% of State Street worth $243,904,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in STT. Regents of The University of California purchased a new stake in shares of State Street during the third quarter valued at approximately $324,576,000. Norges Bank purchased a new stake in shares of State Street during the fourth quarter valued at approximately $303,483,000. Two Sigma Investments LP boosted its stake in shares of State Street by 261.0% during the third quarter. Two Sigma Investments LP now owns 1,217,802 shares of the asset manager’s stock valued at $141,277,000 after purchasing an additional 880,507 shares during the period. First Trust Advisors LP lifted its stake in State Street by 36.8% in the third quarter. First Trust Advisors LP now owns 2,747,646 shares of the asset manager’s stock worth $318,754,000 after acquiring an additional 738,456 shares during the period. Finally, Jupiter Asset Management Ltd. purchased a new stake in State Street in the third quarter worth $62,092,000. Hedge funds and other institutional investors own 87.44% of the company’s stock.

Insider Activity at State Street

In related news, COO Mostapha Tahiri sold 9,611 shares of State Street stock in a transaction dated Wednesday, April 22nd. The shares were sold at an average price of $152.93, for a total transaction of $1,469,810.23. Following the completion of the transaction, the chief operating officer directly owned 64,642 shares of the company’s stock, valued at $9,885,701.06. This trade represents a 12.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP John Plansky sold 16,100 shares of the firm’s stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $124.32, for a total value of $2,001,552.00. Following the transaction, the executive vice president owned 56,162 shares of the company’s stock, valued at $6,982,059.84. The trade was a 22.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 52,476 shares of company stock worth $7,624,925 over the last 90 days. 0.27% of the stock is currently owned by insiders.

State Street Trading Up 3.2%

Shares of NYSE STT opened at $162.92 on Friday. State Street Corporation has a 1 year low of $95.61 and a 1 year high of $163.95. The stock has a market cap of $45.09 billion, a P/E ratio of 16.52, a price-to-earnings-growth ratio of 0.86 and a beta of 1.43. The firm has a 50-day moving average of $146.28 and a 200 day moving average of $133.47. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.57 and a quick ratio of 0.57.

State Street (NYSE:STT) last issued its quarterly earnings results on Friday, April 17th. The asset manager reported $2.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.64 by $0.20. State Street had a net margin of 13.47% and a return on equity of 14.22%. The company had revenue of $3.80 billion during the quarter, compared to analysts’ expectations of $3.59 billion. During the same period last year, the company posted $2.04 EPS. State Street’s revenue was up 15.6% on a year-over-year basis. As a group, sell-side analysts expect that State Street Corporation will post 12.35 EPS for the current fiscal year.

State Street Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 13th. Investors of record on Wednesday, July 1st will be given a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Wednesday, July 1st. State Street’s dividend payout ratio (DPR) is 34.08%.

State Street News Summary

Here are the key news stories impacting State Street this week:

• Positive Sentiment: State Street expanded its investment servicing relationship with Principal Financial Group, a sign that the company is continuing to win and deepen asset-servicing mandates. State Street Expands Investment Servicing Relationship with Principal Financial Group®
• Positive Sentiment: Analysts currently rate State Street as a “Moderate Buy” on average, reinforcing a constructive outlook for the shares. State Street Corporation (NYSE:STT) Receives Average Rating of “Moderate Buy” from Analysts
• Positive Sentiment: State Street’s stock has been outperforming its longer-term trend and is trading close to its 12-month high, which can attract momentum-focused investors. NYSE:STT Price Performance
• Neutral Sentiment: Several reports noted State Street reducing or exiting substantial holdings in smaller overseas companies, including Service Stream, Greatland Resources, Select Harvests, and Deterra Royalties; these are portfolio-management updates and do not directly change State Street’s core operating outlook. State Street Group Ceases to Be Substantial Holder in Service Stream State Street ceases substantial holding in Greatland Resources State Street Entities Exit Substantial Holder Position in Select Harvests State Street Group exits substantial holding in Deterra Royalties
• Neutral Sentiment: A governance-focused article questioned the rejected independent-chair proposal, but it is more of an investor debate item than a clear fundamental catalyst. Did State Street’s Rejected Independent-Chair Proposal Reframe Its Governance Trade-offs for Investors in STT?
• Neutral Sentiment: One market commentary said State Street underperformed peers on Wednesday, but this looks like a short-term relative-performance note rather than new company-specific news. State Street Corp. stock underperforms Wednesday when compared to competitors

Analysts Set New Price Targets

STT has been the subject of a number of research analyst reports. Wells Fargo & Company raised their price target on State Street from $162.00 to $171.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 26th. Barclays set a $165.00 price target on State Street in a research note on Monday, April 20th. Citigroup raised their price target on State Street from $150.00 to $172.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Evercore set a $158.00 price target on State Street and gave the stock an “outperform” rating in a research note on Monday, April 20th. Finally, Morgan Stanley raised their price target on State Street from $155.00 to $166.00 and gave the stock an “overweight” rating in a research note on Monday, April 20th. Three research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $158.57.

State Street Profile

State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.

State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.