State Street (STT) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of State Street (NYSE:STT) from a buy rating to a hold rating in a research report released on Friday morning.

According to Zacks, “Shares of State Street have marginally outperformed the industry in the past six months. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the trailing four quarters. New business wins, efforts to improve efficiency through its multi-year restructuring plan, synergies from GE Asset Management deal, easing margin pressure and the benefits from the new tax act are likely to aid profitability. Also, its enhanced capital deployment activities and exposure in international markets keeps us encouraged. However, declining total brokerage and other trading services revenues remains a concern. Further, mounting expenses will likely continue to hamper profitability to some extent.”

Several other research analysts also recently weighed in on STT. Jefferies Group reaffirmed a hold rating and issued a $100.00 target price on shares of State Street in a report on Friday, September 15th. Citigroup reaffirmed a neutral rating and issued a $102.00 target price (up previously from $88.00) on shares of State Street in a report on Monday, October 9th. Royal Bank of Canada dropped their target price on shares of State Street from $104.00 to $95.00 and set a sector perform rating for the company in a report on Tuesday, October 24th. Morgan Stanley upped their target price on shares of State Street from $90.00 to $105.00 and gave the stock an equal weight rating in a report on Tuesday, October 24th. Finally, ValuEngine downgraded shares of State Street from a buy rating to a hold rating in a report on Friday, November 10th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company’s stock. State Street presently has a consensus rating of Buy and a consensus price target of $101.13.

Shares of State Street (NYSE:STT) opened at $107.24 on Friday. State Street has a 1 year low of $74.45 and a 1 year high of $107.57. The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.48 and a current ratio of 0.48. The stock has a market cap of $39,770.00, a price-to-earnings ratio of 18.55, a PEG ratio of 1.39 and a beta of 1.35.

State Street (NYSE:STT) last issued its quarterly earnings data on Monday, October 23rd. The asset manager reported $1.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.61 by $0.10. State Street had a net margin of 20.56% and a return on equity of 13.03%. The firm had revenue of $2.97 billion during the quarter, compared to the consensus estimate of $2.94 billion. During the same quarter in the previous year, the firm posted $1.35 EPS. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year. sell-side analysts forecast that State Street will post 6.27 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 17th. Shareholders of record on Tuesday, January 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.57%. The ex-dividend date of this dividend is Friday, December 29th. State Street’s payout ratio is currently 29.07%.

In other State Street news, Chairman Joseph L. Hooley sold 25,000 shares of the business’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $92.60, for a total value of $2,315,000.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Andrew Erickson sold 354 shares of the business’s stock in a transaction on Thursday, November 16th. The stock was sold at an average price of $92.00, for a total transaction of $32,568.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 28,724 shares of company stock worth $2,659,741. Corporate insiders own 0.71% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the business. Zions Bancorporation raised its position in shares of State Street by 318.0% during the 3rd quarter. Zions Bancorporation now owns 1,045 shares of the asset manager’s stock valued at $100,000 after buying an additional 795 shares in the last quarter. Sabal Trust CO purchased a new stake in shares of State Street during the 3rd quarter valued at about $201,000. Trustmark National Bank Trust Department purchased a new stake in shares of State Street during the 3rd quarter valued at about $204,000. Tiemann Investment Advisors LLC purchased a new stake in shares of State Street during the 3rd quarter valued at about $204,000. Finally, KLCM Advisors Inc. purchased a new stake in shares of State Street during the 2nd quarter valued at about $205,000. Institutional investors and hedge funds own 88.14% of the company’s stock.

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About State Street

State Street Corporation is a financial holding company. The Company operates through two lines of business: Investment Servicing and Investment Management. The Company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), provides a range of financial products and services to institutional investors across the world.

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