Hsbc Holdings PLC Makes New Investment in State Street Corporation $STT

Hsbc Holdings PLC bought a new stake in State Street Corporation (NYSE:STT) in the second quarter, HoldingsChannel reports. The fund bought 1,188,087 shares of the asset manager’s stock, valued at approximately $201,634,000.

Other institutional investors also recently added to or reduced their stakes in the company. Bell Investment Advisors Inc purchased a new position in shares of State Street during the second quarter worth approximately $28,000. Wilkerson Advisory Group LLC acquired a new stake in State Street during the 4th quarter worth approximately $29,000. JPL Wealth Management LLC purchased a new position in State Street in the 3rd quarter valued at $29,000. Phillip James Consulting Co. acquired a new position in State Street during the 4th quarter worth approximately $30,000. Finally, Elevation Wealth Partners LLC boosted its stake in shares of State Street by 153.6% in the second quarter. Elevation Wealth Partners LLC now owns 175 shares of the asset manager’s stock valued at $30,000 after buying an additional 106 shares in the last quarter. Institutional investors and hedge funds own 87.44% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Barclays increased their price objective on State Street from $165.00 to $200.00 and gave the stock an “equal weight” rating in a research report on Friday, July 17th. Weiss Ratings upgraded shares of State Street from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, May 28th. JPMorgan Chase & Co. upped their price target on State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Zacks Research raised State Street from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 21st. Finally, Citigroup upped their target price on State Street from $193.00 to $210.00 and gave the company a “buy” rating in a report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, State Street has an average rating of “Moderate Buy” and a consensus price target of $185.38.

Insider Buying and Selling

In related news, EVP W. Bradford Hu sold 9,758 shares of the stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the completion of the sale, the executive vice president owned 49,794 shares of the company’s stock, valued at approximately $9,187,988.88. This represents a 16.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hanley Ronald P. O sold 14,553 shares of State Street stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the transaction, the chief executive officer directly owned 240,959 shares in the company, valued at approximately $44,377,419.03. This trade represents a 5.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 25,811 shares of company stock valued at $4,723,982. Insiders own 0.27% of the company’s stock.

State Street Stock Up 1.2%

Shares of NYSE:STT opened at $193.12 on Wednesday. The company has a market capitalization of $53.05 billion, a P/E ratio of 17.03, a P/E/G ratio of 0.79 and a beta of 1.41. The stock’s fifty day simple moving average is $181.03 and its 200-day simple moving average is $154.80. State Street Corporation has a 52-week low of $104.64 and a 52-week high of $195.18. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04.

State Street (NYSE:STT) last issued its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 EPS for the quarter, topping analysts’ consensus estimates of $3.34 by $0.31. The business had revenue of $4.05 billion during the quarter, compared to the consensus estimate of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company’s quarterly revenue was up 23.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.04 earnings per share. As a group, equities research analysts forecast that State Street Corporation will post 13.75 earnings per share for the current fiscal year.

State Street Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Shareholders of record on Thursday, October 1st will be paid a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Thursday, October 1st. This is a positive change from State Street’s previous quarterly dividend of $0.84. State Street’s dividend payout ratio is 29.63%.

State Street Company Profile

State Street Corporation is a global financial services company that provides a range of investment servicing, investment management and investment research and trading services to institutional investors. Its principal activities include custody and fund administration, securities lending, performance and risk analytics, trading and execution services, and foreign exchange. The company also offers investment management through State Street Global Advisors, a major provider of exchange-traded funds and institutional investment strategies.

State Street serves a broad client base of asset managers, insurance companies, pension funds, endowments, and other institutions across North America, Europe, Asia and other global markets.