State Street (NYSE:STT) Reaches New 12-Month High – Here’s Why

Shares of State Street Corporation (NYSE:STT) hit a new 52-week high on Wednesday . The stock traded as high as $134.77 and last traded at $134.7380, with a volume of 1326064 shares traded. The stock had previously closed at $132.81.

Analysts Set New Price Targets

Several equities research analysts have weighed in on STT shares. Wells Fargo & Company raised their price target on State Street from $121.00 to $129.00 and gave the stock an “overweight” rating in a report on Monday, October 20th. Wall Street Zen cut shares of State Street from a “hold” rating to a “sell” rating in a research note on Saturday, January 3rd. Truist Financial restated a “hold” rating and set a $138.00 price target (up previously from $131.00) on shares of State Street in a research note on Wednesday, January 7th. Morgan Stanley reiterated an “overweight” rating and set a $168.00 price objective on shares of State Street in a research note on Tuesday, December 16th. Finally, TD Cowen upped their target price on State Street from $135.00 to $155.00 and gave the company a “buy” rating in a research report on Wednesday, January 7th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $133.77.

State Street Trading Up 1.4%

The firm has a market cap of $37.60 billion, a PE ratio of 14.25, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43. The company has a 50-day simple moving average of $124.34 and a 200 day simple moving average of $116.72. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.03.

State Street (NYSE:STT) last posted its earnings results on Friday, October 17th. The asset manager reported $2.78 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.21. State Street had a net margin of 13.14% and a return on equity of 13.37%. The firm had revenue of $3.55 billion during the quarter, compared to analyst estimates of $3.43 billion. During the same period in the previous year, the firm earned $2.26 EPS. The business’s quarterly revenue was up 8.8% on a year-over-year basis. As a group, sell-side analysts forecast that State Street Corporation will post 9.68 earnings per share for the current fiscal year.

State Street Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, January 12th. Stockholders of record on Friday, January 2nd were paid a dividend of $0.84 per share. This represents a $3.36 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Friday, January 2nd. State Street’s dividend payout ratio is presently 35.56%.

Insider Buying and Selling at State Street

In related news, EVP Michael L. Richards sold 1,500 shares of State Street stock in a transaction dated Monday, October 27th. The stock was sold at an average price of $117.24, for a total value of $175,860.00. Following the completion of the transaction, the executive vice president owned 38,626 shares in the company, valued at $4,528,512.24. The trade was a 3.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.29% of the stock is currently owned by corporate insiders.

Institutional Trading of State Street

A number of institutional investors and hedge funds have recently made changes to their positions in STT. Nordea Investment Management AB raised its holdings in shares of State Street by 2.2% during the second quarter. Nordea Investment Management AB now owns 2,273,567 shares of the asset manager’s stock valued at $241,862,000 after acquiring an additional 49,475 shares during the last quarter. Milestone Asset Management LLC acquired a new position in State Street in the 3rd quarter valued at $4,048,000. Achmea Investment Management B.V. lifted its holdings in State Street by 3.8% in the 2nd quarter. Achmea Investment Management B.V. now owns 246,361 shares of the asset manager’s stock valued at $26,198,000 after purchasing an additional 9,101 shares in the last quarter. American Century Companies Inc. boosted its stake in State Street by 7.8% during the 2nd quarter. American Century Companies Inc. now owns 378,489 shares of the asset manager’s stock worth $40,249,000 after purchasing an additional 27,425 shares during the last quarter. Finally, Osaic Holdings Inc. grew its holdings in shares of State Street by 42.8% during the second quarter. Osaic Holdings Inc. now owns 32,130 shares of the asset manager’s stock worth $3,414,000 after buying an additional 9,625 shares in the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

About State Street

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.