State Street (NYSE:STT) Sets New 1-Year High – Here’s Why

State Street Co. (NYSE:STT)’s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $89.53 and last traded at $89.46, with a volume of 230482 shares trading hands. The stock had previously closed at $88.86.

Analysts Set New Price Targets

A number of research firms have recently commented on STT. Keefe, Bruyette & Woods dropped their price objective on State Street from $88.00 to $84.00 and set a “market perform” rating on the stock in a research note on Thursday, June 27th. Morgan Stanley upped their price target on State Street from $93.00 to $100.00 and gave the stock an “equal weight” rating in a report on Monday, September 30th. The Goldman Sachs Group raised their price objective on shares of State Street from $98.00 to $100.00 and gave the stock a “buy” rating in a research note on Thursday, September 26th. Wells Fargo & Company upped their target price on shares of State Street from $91.00 to $98.00 and gave the company an “overweight” rating in a research note on Wednesday, July 17th. Finally, Bank of America raised their price target on shares of State Street from $85.00 to $96.00 and gave the stock an “underperform” rating in a research report on Wednesday, July 17th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $90.11.

State Street Stock Performance

The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.89. The stock has a market capitalization of $26.83 billion, a price-to-earnings ratio of 16.89, a price-to-earnings-growth ratio of 1.30 and a beta of 1.48. The stock’s 50-day simple moving average is $84.43 and its 200 day simple moving average is $79.02.

State Street (NYSE:STT) last released its quarterly earnings results on Tuesday, July 16th. The asset manager reported $2.15 EPS for the quarter, topping analysts’ consensus estimates of $2.03 by $0.12. State Street had a return on equity of 11.78% and a net margin of 8.98%. The business had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.15 billion. During the same period in the prior year, the company earned $2.17 EPS. State Street’s revenue for the quarter was up 2.6% on a year-over-year basis. Analysts expect that State Street Co. will post 8.14 earnings per share for the current fiscal year.

State Street Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 11th. Investors of record on Tuesday, October 1st were given a dividend of $0.76 per share. This is an increase from State Street’s previous quarterly dividend of $0.69. The ex-dividend date of this dividend was Tuesday, October 1st. This represents a $3.04 annualized dividend and a yield of 3.38%. State Street’s dividend payout ratio is 57.14%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Benjamin F. Edwards & Company Inc. raised its position in shares of State Street by 5.4% during the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 2,514 shares of the asset manager’s stock valued at $186,000 after acquiring an additional 129 shares during the last quarter. Symmetry Partners LLC grew its holdings in shares of State Street by 3.5% in the 1st quarter. Symmetry Partners LLC now owns 3,802 shares of the asset manager’s stock valued at $294,000 after buying an additional 130 shares during the period. HB Wealth Management LLC raised its stake in State Street by 3.4% during the 1st quarter. HB Wealth Management LLC now owns 4,309 shares of the asset manager’s stock worth $333,000 after buying an additional 140 shares during the period. Massmutual Trust Co. FSB ADV increased its holdings in shares of State Street by 9.3% in the second quarter. Massmutual Trust Co. FSB ADV now owns 1,739 shares of the asset manager’s stock worth $129,000 after acquiring an additional 148 shares in the last quarter. Finally, Tompkins Financial Corp raised its position in shares of State Street by 28.3% during the first quarter. Tompkins Financial Corp now owns 680 shares of the asset manager’s stock worth $53,000 after purchasing an additional 150 shares during the period. 87.44% of the stock is currently owned by institutional investors.

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, accounting, regulatory reporting, investor, and performance and analytics; middle office products, such as IBOR, transaction management, loans, cash, derivatives and collateral, record keeping, and client reporting and investment analytics; finance leasing; foreign exchange, and brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.