Elizabeth Schaefer, Senior Vice President and Chief Accounting Officer at State Street Corp (NYSE:STT), recently sold 500 shares of the company's common stock. The shares were sold at a price of $92.50 each, amounting to a total transaction value of $46,250. Following this sale, Schaefer retains ownership of 6,640 shares in the company.
In other recent news, State Street Corporation (NYSE:STT) reported robust third-quarter earnings per share (EPS) of $2.26, which exceeded analysts' expectations. The company saw a 7% growth in fee revenues and a 9% increase in total revenues, securing $466 billion in assets under custody/administration and achieving record quarterly net flows of $100 billion in its Global Advisors division. Despite these impressive results, JPMorgan maintained its Underweight rating on the company, citing pricing pressures and slower revenue growth.
Several analysts have revised their price targets for State Street. Keefe, Bruyette & Woods raised its price target to $105, Goldman Sachs to $106, and Evercore ISI to $94, citing the company's strong earnings. However, BofA Securities maintained an Underperform rating, suggesting other stocks may offer more attractive risk/reward opportunities.
State Street's future plans include total fee revenue growth of 4% to 5%, net interest income growth of 4% to 5%, and generating $1 billion in software revenue over the next five years. The company has also formed a partnership with Apollo Global Management (NYSE:APO) for private market opportunities and launched 20 new ETFs. These recent developments are part of State Street's ongoing business strategy.
InvestingPro Insights
While Elizabeth Schaefer's recent sale of 500 shares might raise eyebrows, it's crucial to view this transaction within the broader context of State Street Corp's (NYSE:STT) financial performance and market position.
According to InvestingPro data, State Street's stock is currently trading near its 52-week high, with a price that's 96.66% of its peak. This aligns with the company's strong performance over the past year, as evidenced by a 39.78% total price return over the last 12 months. The stock's momentum is further underscored by a 29.01% price return over the past six months.
State Street's financial health appears robust, with a market capitalization of $27.31 billion and a price-to-earnings ratio of 13.2, suggesting the stock may be reasonably valued compared to its earnings. The company's revenue growth of 4.38% over the last twelve months, coupled with a 20.14% quarterly revenue growth, indicates a positive trajectory in its core business.
InvestingPro Tips highlight that State Street has maintained dividend payments for 54 consecutive years and has raised its dividend for 13 consecutive years. This commitment to shareholder returns is reflected in the current dividend yield of 3.28%, making it an attractive option for income-focused investors.
It's worth noting that 8 analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's near-term performance. This optimism is further supported by analysts' predictions that the company will remain profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for State Street Corp, providing a deeper dive into the company's financial health and market position.
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