Hsbc Holdings PLC Increases Stake in State Street Corporation $STT

Hsbc Holdings PLC raised its stake in State Street Corporation (NYSE:STT) by 28.3% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,188,087 shares of the asset manager’s stock after purchasing an additional 261,926 shares during the quarter. Hsbc Holdings PLC’s holdings in State Street were worth $201,634,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in shares of State Street during the 2nd quarter valued at $4,139,389,000. Regents of The University of California lifted its stake in shares of State Street by 211.2% in the fourth quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager’s stock worth $1,123,186,000 after acquiring an additional 5,908,370 shares in the last quarter. Norges Bank purchased a new position in shares of State Street during the 4th quarter valued at approximately $303,483,000. Legal & General Group Plc bought a new position in State Street during the 2nd quarter valued at $330,849,000. Finally, Bank of New York Mellon Corp bought a new position in shares of State Street during the second quarter worth about $301,393,000. 87.44% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on STT shares. Barclays raised their price objective on State Street from $165.00 to $200.00 and gave the stock an “equal weight” rating in a research note on Friday, July 17th. The Goldman Sachs Group boosted their price objective on State Street from $168.00 to $194.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. Truist Financial reaffirmed a “hold” rating and issued a $191.00 price objective (up from $176.00) on shares of State Street in a report on Friday, July 17th. JPMorgan Chase & Co. increased their price target on State Street from $176.50 to $187.00 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Finally, Evercore set a $200.00 price objective on shares of State Street in a research report on Monday, July 20th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $185.38.

Insider Activity at State Street

In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the transaction, the chief executive officer directly owned 240,959 shares of the company’s stock, valued at $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of the stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $184.52, for a total value of $1,800,546.16. Following the transaction, the executive vice president directly owned 49,794 shares in the company, valued at approximately $9,187,988.88. This represents a 16.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.27% of the company’s stock.

State Street Stock Performance

Shares of State Street stock opened at $194.41 on Monday. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. State Street Corporation has a 12 month low of $104.64 and a 12 month high of $195.93. The business has a fifty day simple moving average of $184.53 and a 200-day simple moving average of $158.29. The stock has a market cap of $53.40 billion, a PE ratio of 17.14, a price-to-earnings-growth ratio of 0.92 and a beta of 1.41.

State Street (NYSE:STT) last issued its earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share for the quarter, beating analysts’ consensus estimates of $3.34 by $0.31. State Street had a return on equity of 15.26% and a net margin of 15.02%.The company had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $3.88 billion. During the same quarter in the prior year, the company earned $2.04 EPS. The firm’s quarterly revenue was up 23.3% on a year-over-year basis. On average, sell-side analysts anticipate that State Street Corporation will post 13.75 EPS for the current fiscal year.

State Street Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be paid a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 1.9%. This is an increase from State Street’s previous quarterly dividend of $0.84. The ex-dividend date is Thursday, October 1st. State Street’s dividend payout ratio is presently 29.63%.

State Street Company 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.