Investment analysts at TD Cowen have raised their price target for State Street Corporation (NYSE: STT) from $135.00 to $155.00, indicating a potential upside of 16.74% based on the company’s recent closing price. This update was disclosed in a research report issued on October 17, 2023, where TD Cowen maintained a “buy” rating on the asset manager’s stock.
Several other financial institutions have also adjusted their forecasts for State Street. Loop Capital set a price target of $144.00, while Goldman Sachs reaffirmed a “buy” rating. Additionally, Truist Financial upgraded its price objective to $138.00, up from $131.00, and Cowen reiterated its “buy” recommendation. Weiss Ratings confirmed a “buy (b)” rating as well. Overall, one analyst has categorized the stock as a Strong Buy, ten analysts have given it a Buy rating, four assigned a Hold rating, and one issued a Sell rating. According to data from MarketBeat, the consensus price target stands at $133.77.
State Street’s Recent Earnings Performance
State Street reported its earnings results on October 17, 2023, revealing earnings per share (EPS) of $2.78 for the quarter, exceeding the consensus estimate of $2.57 by $0.21. The company achieved a return on equity of 13.37% and a net margin of 13.14%. Revenue for the quarter reached $3.55 billion, surpassing expectations of $3.43 billion and reflecting an 8.8% increase compared to the previous year. Analysts project that State Street will report an EPS of $9.68 for the current fiscal year.
Insider Activity and Institutional Investments
In related news, executive vice president Michael L. Richards sold 1,500 shares of State Street stock on October 27, 2023, at an average price of $117.24, totaling $175,860.00. Following this transaction, Richards retains 38,626 shares in the company, valued at approximately $4,528,512.24. This sale represents a 3.74% decrease in his holdings, and the transaction was reported to the Securities and Exchange Commission.
Recent institutional activity indicates increased interest in State Street. Notably, the Regents of The University of California invested approximately $324.6 million in the company during the third quarter. Norges Bank also acquired a new stake valued at about $256.4 million. Additionally, Two Sigma Investments LP increased its position by 261%, now holding 1,217,802 shares worth approximately $141.3 million. First Trust Advisors LP also expanded its holdings by 36.8%, while Jupiter Asset Management Ltd. entered with a new position valued at roughly $62.1 million. Currently, institutional investors and hedge funds own approximately 87.44% of the company’s shares.
State Street Corporation operates as a global financial services firm, offering investment servicing, management, and research to institutional clients. Its services encompass custody and fund administration, securities lending, trading, and foreign exchange, with a significant presence through State Street Global Advisors, a prominent provider of exchange-traded funds and institutional strategies. The firm caters to a diverse clientele, including asset managers, pension funds, and endowments across North America, Europe, and Asia.
