State Street (STT) Downgraded by Zacks Investment Research

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

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 firms have also commented on STT. Keefe, Bruyette & Woods raised State Street from a market perform rating to an outperform rating and set a $110.00 price objective on the stock in a research report on Tuesday, December 12th. Morgan Stanley raised their price objective on State Street from $90.00 to $105.00 and gave the company an equal weight rating in a research report on Tuesday, October 24th. Jefferies Group reissued a hold rating and issued a $107.00 price objective on shares of State Street in a research report on Tuesday. Vining Sparks reaffirmed a buy rating and set a $120.00 target price on shares of State Street in a research report on Monday, January 8th. Finally, Royal Bank of Canada dropped their target price on State Street from $104.00 to $95.00 and set a sector perform rating on the stock in a research report on Tuesday, October 24th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, seven have assigned a buy rating and two have given a strong buy rating to the stock. State Street has a consensus rating of Buy and a consensus target price of $101.13.

State Street (NYSE:STT) traded up $1.46 during trading hours on Friday, reaching $107.24. The company’s stock had a trading volume of 1,475,592 shares, compared to its average volume of 1,242,023. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 0.61. State Street has a one year low of $74.45 and a one year high of $107.57. The stock has a market capitalization of $39,227.11, a price-to-earnings ratio of 18.59, a PEG ratio of 1.38 and a beta of 1.36.

State Street (NYSE:STT) last released its quarterly earnings data on Monday, October 23rd. The asset manager reported $1.71 EPS for the quarter, beating the consensus estimate of $1.61 by $0.10. State Street had a return on equity of 13.03% and a net margin of 20.56%. The company had revenue of $2.97 billion for the quarter, compared to analyst estimates of $2.94 billion. During the same period last year, the company posted $1.35 earnings per share. The firm’s revenue was up 7.7% compared to the same quarter last year. research analysts predict that State Street will post 6.26 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 17th. Stockholders of record on Tuesday, January 2nd will be given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.57%. The ex-dividend date of this dividend is Friday, December 29th. State Street’s payout ratio is 29.12%.

In related news, Chairman Joseph L. Hooley sold 25,000 shares of the business’s stock in a transaction dated Wednesday, November 1st. The stock was sold at an average price of $92.60, for a total value of $2,315,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Hannah M. Grove sold 3,200 shares of the business’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $92.64, for a total value of $296,448.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 28,724 shares of company stock worth $2,659,741. Corporate insiders own 0.71% of the company’s stock.

Institutional investors have recently made changes to their positions in the stock. Zions Bancorporation increased its holdings in State Street by 318.0% in the third quarter. Zions Bancorporation now owns 1,045 shares of the asset manager’s stock valued at $100,000 after buying an additional 795 shares during the last quarter. Sabal Trust CO bought a new stake in State Street in the third quarter valued at about $201,000. Trustmark National Bank Trust Department bought a new stake in State Street in the third quarter valued at about $204,000. Tiemann Investment Advisors LLC bought a new stake in State Street in the third quarter valued at about $204,000. Finally, KLCM Advisors Inc. bought a new stake in State Street in the second quarter valued at about $205,000. 88.13% of the stock is owned by hedge funds and other institutional investors.

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State Street Company Profile

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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