State Street (STT) Trading Down 8.5% After Earnings Miss

State Street Corp (NYSE:STT)’s share price fell 8.5% during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $71.79 and last traded at $72.90. 11,313,908 shares were traded during trading, an increase of 432% from the average session volume of 2,126,667 shares. The stock had previously closed at $79.70.

The asset manager reported $1.87 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.89 by ($0.02). The business had revenue of $2.95 billion for the quarter, compared to the consensus estimate of $3.02 billion. State Street had a return on equity of 14.98% and a net margin of 19.56%. State Street’s quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.71 earnings per share.

A number of research firms have issued reports on STT. ValuEngine cut State Street from a “sell” rating to a “strong sell” rating in a report on Friday. Keefe, Bruyette & Woods restated a “market perform” rating on shares of State Street in a report on Friday, August 3rd. Barclays lowered their target price on State Street from $120.00 to $110.00 and set a “$87.02” rating on the stock in a research report on Monday, July 23rd. Wolfe Research initiated coverage on State Street in a research report on Tuesday, September 25th. They set a “market perform” rating on the stock. Finally, Wells Fargo & Co set a $105.00 target price on State Street and gave the stock a “buy” rating in a research report on Thursday, August 16th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and eight have given a buy rating to the company. State Street has a consensus rating of “Hold” and an average target price of $105.07.

In other news, CEO Joseph L. Hooley sold 25,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 15th. The stock was sold at an average price of $83.01, for a total transaction of $2,075,250.00. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP George E. Sullivan sold 1,611 shares of the company’s stock in a transaction that occurred on Thursday, August 16th. The stock was sold at an average price of $83.18, for a total value of $134,002.98. Following the transaction, the executive vice president now directly owns 58,847 shares in the company, valued at $4,894,893.46. The disclosure for this sale can be found here. Insiders have sold 26,954 shares of company stock worth $2,237,777 over the last ninety days. 0.40% of the stock is owned by insiders.

Several large investors have recently modified their holdings of STT. Trust Co. of Vermont raised its position in State Street by 15.8% in the 2nd quarter. Trust Co. of Vermont now owns 4,252 shares of the asset manager’s stock valued at $396,000 after buying an additional 580 shares during the last quarter. Commonwealth Equity Services LLC raised its position in State Street by 1.7% in the 2nd quarter. Commonwealth Equity Services LLC now owns 35,179 shares of the asset manager’s stock valued at $3,275,000 after buying an additional 604 shares during the last quarter. IFP Advisors Inc raised its position in State Street by 17.8% in the 2nd quarter. IFP Advisors Inc now owns 4,200 shares of the asset manager’s stock valued at $391,000 after buying an additional 635 shares during the last quarter. SRS Capital Advisors Inc. raised its position in State Street by 36.1% in the 2nd quarter. SRS Capital Advisors Inc. now owns 2,431 shares of the asset manager’s stock valued at $226,000 after buying an additional 645 shares during the last quarter. Finally, Dowling & Yahnke LLC raised its position in State Street by 2.9% in the 2nd quarter. Dowling & Yahnke LLC now owns 23,526 shares of the asset manager’s stock valued at $2,190,000 after buying an additional 660 shares during the last quarter. 86.88% of the stock is currently owned by institutional investors.

The stock has a market cap of $30.05 billion, a P/E ratio of 12.23, a price-to-earnings-growth ratio of 1.13 and a beta of 1.22. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.52 and a quick ratio of 0.52.

State Street Company Profile (NYSE:STT)

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; product and participant level accounting; daily pricing and administration; master trust and master custody; depotbank services; record-keeping; cash management; foreign exchange, brokerage, and other trading services; securities finance; deposit and short-term investment facilities; loans and lease financing; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors.

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