State Street (NYSE:STT) Issues Earnings Results, Beats Expectations By $0.15 EPS

State Street (NYSE:STT) announced its earnings results on Friday. The asset manager reported $2.97 EPS for the quarter, topping analysts’ consensus estimates of $2.82 by $0.15, Zacks reports. State Street had a net margin of 13.14% and a return on equity of 13.37%. State Street’s quarterly revenue was up 7.5% on a year-over-year basis. During the same period in the prior year, the firm earned $2.60 earnings per share.

State Street Trading Up 1.0%

NYSE STT opened at $136.11 on Friday. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.03. The firm has a 50 day moving average of $125.07 and a two-hundred day moving average of $116.98. The stock has a market capitalization of $38.02 billion, a PE ratio of 14.40, a price-to-earnings-growth ratio of 0.90 and a beta of 1.43. State Street has a 52 week low of $72.81 and a 52 week high of $137.05.

State Street Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, January 12th. Shareholders of record on Friday, January 2nd were given a $0.84 dividend. The ex-dividend date of this dividend was Friday, January 2nd. This represents a $3.36 dividend on an annualized basis and a yield of 2.5%. State Street’s dividend payout ratio (DPR) is currently 35.56%.

Analyst Ratings Changes

Several research firms have recently issued reports on STT. Cowen reissued a “buy” rating on shares of State Street in a research note on Wednesday, January 7th. Evercore ISI upped their target price on State Street from $117.00 to $128.00 and gave the stock an “outperform” rating in a research note on Tuesday, September 30th. Wells Fargo & Company upped their price objective on shares of State Street from $121.00 to $129.00 and gave the stock an “overweight” rating in a research report on Monday, October 20th. Keefe, Bruyette & Woods boosted their target price on shares of State Street from $132.00 to $135.00 and gave the stock an “outperform” rating in a research note on Monday, October 20th. Finally, Morgan Stanley restated an “overweight” rating and set a $168.00 price target on shares of State Street in a research report on Tuesday, December 16th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, State Street currently has an average rating of “Moderate Buy” and an average price target of $133.77.

Key Headlines Impacting State Street

Here are the key news stories impacting State Street this week:

• Positive Sentiment: State Street launched a broad Digital Asset Platform to power tokenized finance, enabling tokenized money market funds, ETFs, deposits and stablecoins — a strategic move that could open new fee pools and custody revenue. State Street Launches Digital Asset Platform to Power Tokenized Finance
• Positive Sentiment: Coverage highlights the tokenization tools aimed at institutional clients (tokenized MMFs, ETFs and digital cash), reinforcing State Street’s positioning as a bridge between traditional and crypto markets. State Street rolls out new crypto tokenization tools
• Positive Sentiment: Industry write-ups note the platform is an infrastructure play (scalable custody & tokenization services) that moves State Street from experimentation toward commercial product delivery — a potential long-term growth driver. State Street Deploys Infrastructure Platform for Tokenized Assets
• Positive Sentiment: Analyst notes ahead of the Q4 report show revisions pointing to higher expected EPS, suggesting consensus is tracking upward into earnings — a near-term positive for the stock if results meet or beat. State Street Likely To Report Higher Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: Market previews and commentary (Forbes, Yahoo Finance) focus on what to watch in the upcoming Q4 release — revenue, margins, and commentary on fee income and AUM trends will drive short-term moves. State Street (STT) Q4 Earnings Report Preview: What To Look For
• Neutral Sentiment: Several outlets note the stock is near multi‑year highs ahead of earnings; that context raises expectations and could amplify post‑earnings volatility. J.B. Hunt Transport, PNC Financial And 3 Stocks To Watch Heading Into Friday
• Neutral Sentiment: Product coverage: State Street’s iShares JNK (high-yield ETF run by SPDR/State Street) stories highlight product distribution track records — supportive for franchise perception but not an immediate earnings driver. State Street’s JNK ETF Pays 6.5% Monthly Income With 18 Years Of Reliable Distributions Behind It
• Negative Sentiment: Truist downgraded STT to a Hold, which could weigh on near-term sentiment and limit upside from momentum trades even if fundamentals remain solid. State Street (STT) was downgraded to a Hold Rating at Truist Financial

Insiders Place Their Bets

In other State Street news, EVP Michael L. Richards sold 1,500 shares of the company’s stock in a transaction dated Monday, October 27th. The shares were sold at an average price of $117.24, for a total value of $175,860.00. Following the transaction, the executive vice president directly owned 38,626 shares in the company, valued at approximately $4,528,512.24. This represents a 3.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.29% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of STT. Security National Bank of SO Dak grew its stake in State Street by 0.5% during the 2nd quarter. Security National Bank of SO Dak now owns 21,528 shares of the asset manager’s stock worth $2,289,000 after buying an additional 105 shares during the last quarter. Norinchukin Bank The increased its holdings in shares of State Street by 0.8% in the 3rd quarter. Norinchukin Bank The now owns 16,204 shares of the asset manager’s stock worth $1,880,000 after acquiring an additional 132 shares during the period. Advisory Services Network LLC lifted its position in State Street by 1.3% in the 3rd quarter. Advisory Services Network LLC now owns 12,622 shares of the asset manager’s stock valued at $1,464,000 after purchasing an additional 156 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its position in State Street by 45.7% in the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 510 shares of the asset manager’s stock worth $59,000 after purchasing an additional 160 shares during the last quarter. Finally, Larson Financial Group LLC increased its stake in shares of State Street by 20.8% in the third quarter. Larson Financial Group LLC now owns 993 shares of the asset manager’s stock valued at $115,000 after purchasing an additional 171 shares during the period. Institutional investors and hedge funds own 87.44% of the company’s stock.

About State Street

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.