State Street (NYSE:STT) Shares Gap Down – Here’s Why

State Street Co. (NYSE:STT)’s share price gapped down prior to trading on Friday . The stock had previously closed at $100.49, but opened at $95.66. State Street shares last traded at $97.30, with a volume of 954,895 shares changing hands.

Analyst Ratings Changes

Several analysts recently issued reports on the company. StockNews.com cut State Street from a “buy” rating to a “hold” rating in a research report on Friday. Truist Financial started coverage on shares of State Street in a report on Tuesday, January 7th. They set a “hold” rating and a $106.00 price objective for the company. Wells Fargo & Company boosted their target price on shares of State Street from $108.00 to $118.00 and gave the stock an “overweight” rating in a report on Thursday, January 2nd. Keefe, Bruyette & Woods raised shares of State Street from a “market perform” rating to an “outperform” rating and raised their target price for the company from $105.00 to $120.00 in a research note on Tuesday, December 3rd. Finally, The Goldman Sachs Group boosted their price target 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. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $100.33.

State Street Stock Performance

The company has a debt-to-equity ratio of 0.91, a current ratio of 0.56 and a quick ratio of 0.56. The business has a 50-day moving average of $97.72 and a 200-day moving average of $89.52. The company has a market capitalization of $28.58 billion, a P/E ratio of 15.40, a P/E/G ratio of 0.97 and a beta of 1.43.

State Street (NYSE:STT) last released its earnings results on Friday, January 17th. The asset manager reported $2.60 EPS for the quarter, beating analysts’ consensus estimates of $2.29 by $0.31. State Street had a return on equity of 12.02% and a net margin of 9.87%. The firm had revenue of $3.41 billion for the quarter, compared to analysts’ expectations of $3,267,560 billion. During the same quarter in the prior year, the firm posted $2.04 earnings per share. The company’s quarterly revenue was up 12.1% on a year-over-year basis. On average, sell-side analysts anticipate that State Street Co. will post 8.45 EPS for the current year.

State Street Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, January 13th. Shareholders of record on Thursday, January 2nd were paid a $0.76 dividend. The ex-dividend date of this dividend was Thursday, January 2nd. This represents a $3.04 dividend on an annualized basis and a yield of 3.12%. State Street’s payout ratio is 48.03%.

Insider Activity

In other news, EVP Kathryn M. Horgan sold 12,500 shares of State Street stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $97.97, for a total transaction of $1,224,625.00. Following the completion of the sale, the executive vice president now owns 111,042 shares of the company’s stock, valued at approximately $10,878,784.74. The trade was a 10.12 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Albion Financial Group UT bought a new position in shares of State Street during the fourth quarter valued at approximately $25,000. Coastline Trust Co bought a new stake in State Street during the 3rd quarter valued at $44,000. Friedenthal Financial bought a new stake in State Street during the 4th quarter valued at $49,000. Capital Performance Advisors LLP purchased a new position in shares of State Street in the 3rd quarter valued at $54,000. Finally, Versant Capital Management Inc raised its position in shares of State Street by 37.0% in the 4th quarter. Versant Capital Management Inc now owns 730 shares of the asset manager’s stock worth $72,000 after acquiring an additional 197 shares in the last quarter. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

State Street Company Profile

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.