Zacks Investment Research upgraded shares of State Street (NYSE:STT) from a sell rating to a hold rating in a research report report published on Wednesday.

According to Zacks, “Shares of State Street have significantly underperformed the industry over the past six months. Yet, it has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Mounting expenses, despite cost control efforts, remains a major concern as it might hurt bottom-line growth to some extent. Moreover, uncertainty about the performance of capital markets, which is expected to impact its trading services revenues makes us apprehensive. However, the company's new business wins, rising interest rates and strategic acquisitions are likely to continue supporting its profitability. Also, its efficient capital deployment activities reflect a strong balance sheet and capital position.”

Several other analysts also recently commented on the company. Deutsche Bank reduced their target price on State Street from $92.00 to $90.00 and set a buy rating for the company in a research note on Friday, November 16th. Barclays reduced their target price on State Street from $110.00 to $105.00 and set an overweight rating for the company in a research note on Monday, October 22nd. Credit Suisse Group reduced their target price on State Street from $103.00 to $88.00 and set a neutral rating for the company in a research note on Monday, October 22nd. Royal Bank of Canada restated a hold rating and issued a $95.00 target price on shares of State Street in a research note on Sunday, October 21st. Finally, ValuEngine downgraded State Street from a sell rating to a strong sell rating in a research note on Friday, October 19th. One analyst has rated the stock with a sell rating, eight have given a hold rating and nine have issued a buy rating to the stock. The stock currently has an average rating of Hold and a consensus target price of $100.40.

Shares of STT opened at $65.04 on Wednesday. The company has a debt-to-equity ratio of 0.50, a current ratio of 0.50 and a quick ratio of 0.50. The stock has a market capitalization of $25.74 billion, a PE ratio of 10.91, a PEG ratio of 0.99 and a beta of 1.35. State Street has a one year low of $63.40 and a one year high of $114.27.

State Street (NYSE:STT) last issued its earnings results on Friday, October 19th. The asset manager reported $1.87 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.89 by ($0.02). The firm had revenue of $2.95 billion during the quarter, compared to analyst estimates of $3.02 billion. State Street had a net margin of 19.90% and a return on equity of 14.99%. The business’s quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.71 earnings per share. On average, sell-side analysts forecast that State Street will post 7.42 earnings per share for the current fiscal year.

In related news, EVP Louis D. Maiuri purchased 740 shares of the business’s stock in a transaction on Wednesday, October 24th. The stock was acquired at an average price of $67.60 per share, for a total transaction of $50,024.00. Following the purchase, the executive vice president now owns 45,314 shares of the company’s stock, valued at $3,063,226.40. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Saint-Aignan Patrick De purchased 500 shares of the business’s stock in a transaction on Tuesday, October 23rd. The shares were bought at an average price of $68.62 per share, with a total value of $34,310.00. Following the purchase, the director now directly owns 25,138 shares in the company, valued at approximately $1,724,969.56. The disclosure for this purchase can be found here. 0.40% of the stock is currently owned by insiders.

A number of hedge funds have recently added to or reduced their stakes in the business. Massachusetts Financial Services Co. MA boosted its stake in shares of State Street by 7.0% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 27,934,535 shares of the asset manager’s stock worth $2,340,355,000 after buying an additional 1,830,069 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of State Street by 3.6% in the 3rd quarter. Vanguard Group Inc. now owns 26,171,489 shares of the asset manager’s stock worth $2,192,648,000 after buying an additional 910,041 shares during the last quarter. BlackRock Inc. boosted its stake in shares of State Street by 5.7% in the 3rd quarter. BlackRock Inc. now owns 22,719,665 shares of the asset manager’s stock worth $1,903,454,000 after buying an additional 1,224,497 shares during the last quarter. FMR LLC boosted its stake in shares of State Street by 1.9% in the 3rd quarter. FMR LLC now owns 13,405,169 shares of the asset manager’s stock worth $1,123,084,000 after buying an additional 251,861 shares during the last quarter. Finally, Longview Partners Guernsey LTD boosted its stake in shares of State Street by 40.5% in the 3rd quarter. Longview Partners Guernsey LTD now owns 11,202,851 shares of the asset manager’s stock worth $938,575,000 after buying an additional 3,230,396 shares during the last quarter. Institutional investors and hedge funds own 87.22% of the company’s stock.

About State Street

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product and participant level accounting; daily pricing and administration; master trust and master custody; depotbank services; record-keeping; cash management; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.

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