State Street (NYSE:STT) Trading 6.1% Higher After Strong Earnings

State Street Corp (NYSE:STT) shares traded up 6.1% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $63.77 and last traded at $63.34, 4,958,376 shares changed hands during mid-day trading. An increase of 74% from the average session volume of 2,853,492 shares. The stock had previously closed at $59.70.

The asset manager reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.02. State Street had a net margin of 17.66% and a return on equity of 12.13%. The company had revenue of $2.90 billion during the quarter, compared to analyst estimates of $2.86 billion. During the same quarter in the previous year, the business earned $1.87 EPS. The firm’s revenue was down 2.9% on a year-over-year basis.

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st were issued a $0.52 dividend. This is a positive change from State Street’s previous quarterly dividend of $0.47. The ex-dividend date of this dividend was Monday, September 30th. This represents a $2.08 annualized dividend and a dividend yield of 3.28%. State Street’s payout ratio is 28.81%.

Several equities analysts have recently issued reports on the stock. ValuEngine raised shares of State Street from a “sell” rating to a “hold” rating in a report on Wednesday, October 2nd. Morgan Stanley decreased their price target on shares of State Street from $58.00 to $55.00 and set an “underweight” rating for the company in a report on Friday, October 4th. Wells Fargo & Co set a $55.00 price target on shares of State Street and gave the company a “hold” rating in a report on Friday, August 16th. Deutsche Bank decreased their price target on shares of State Street from $55.00 to $53.00 and set a “hold” rating for the company in a report on Wednesday, August 21st. Finally, UBS Group boosted their price target on shares of State Street from $58.00 to $59.00 and gave the company a “neutral” rating in a report on Monday, July 8th. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $67.55.

In other news, CEO Hanley Ronald P. O acquired 7,000 shares of the stock in a transaction dated Thursday, August 29th. The shares were bought at an average cost of $50.43 per share, for a total transaction of $353,010.00. Following the purchase, the chief executive officer now directly owns 127,235 shares of the company’s stock, valued at $6,416,461.05. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Jeffrey N. Carp sold 25,000 shares of the business’s stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $51.72, for a total transaction of $1,293,000.00. The disclosure for this sale can be found here. Insiders have acquired a total of 11,000 shares of company stock worth $577,375 over the last three months. Insiders own 0.40% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the company. Whittier Trust Co. grew its holdings in State Street by 268.7% in the third quarter. Whittier Trust Co. now owns 9,867 shares of the asset manager’s stock worth $584,000 after purchasing an additional 7,191 shares during the period. Whittier Trust Co. of Nevada Inc. grew its holdings in State Street by 15.9% in the third quarter. Whittier Trust Co. of Nevada Inc. now owns 3,675 shares of the asset manager’s stock worth $217,000 after purchasing an additional 505 shares during the period. Cardinal Capital Management grew its holdings in State Street by 120.2% in the third quarter. Cardinal Capital Management now owns 78,877 shares of the asset manager’s stock worth $4,668,000 after purchasing an additional 43,053 shares during the period. Foothills Asset Management Ltd. acquired a new stake in State Street in the third quarter worth $1,942,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in State Street by 5.6% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 81,873 shares of the asset manager’s stock worth $4,846,000 after purchasing an additional 4,355 shares during the period. Institutional investors own 89.92% of the company’s stock.

The company has a debt-to-equity ratio of 0.52, a current ratio of 0.48 and a quick ratio of 0.48. The firm has a market capitalization of $22.12 billion, a price-to-earnings ratio of 8.77, a PEG ratio of 0.98 and a beta of 1.51. The business’s fifty day simple moving average is $56.87 and its 200 day simple moving average is $58.74.

About State Street (NYSE:STT)

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. It 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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