State Street Corporation (NYSE: STT) stock fell -1.71% on Friday to $67.77 against a previous-day closing price of $68.95. With 1.88 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.98 million shares. During the session, the Asset Management company that operates in wider Financial sector, reached to the highest price of $70.28 whereas the lowest price it dropped to was $67.76. The 52-week range on STT shows that it touched its highest point at $104.87 and its lowest point at $58.79 during that stretch. It currently has a 1-year price target of $81.58. With its current market cap of 25.38 billion, STT has annualized dividend of $2.52 while the current yield stands at 3.72%. Beta for the stock currently stands at 1.59.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STT was down-trending over the past week, with a drop of -5.08%, but this was down by -4.39% over a month. Three-month performance surged to 7.01% while six-month performance fell -24.98%. The stock lost -17.04% in the past year, while it has lost -27.13% so far this year. A look at the trailing 12-month EPS for STT yields 7.22 with Next year EPS estimates of 8.66. For the next quarter, that number is 1.78. This implies an EPS growth rate of 13.70% for this year and 22.10% for next year. EPS is expected to grow by 9.53% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 7.70%.
Float and Shares Shorts:
At present, 367.38 million STT shares are outstanding with a float of 366.78 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.94 million, which was 1.07% higher than short shares on Jun 14, 2022. In addition to Mr. Ronald Philip O’Hanley as the firm’s Chairman & CEO, Mr. Eric Walter Aboaf serves as its CFO & Vice Chairman.
Through their ownership of 94.55% of STT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.69% of STT, in contrast to 38.02% held by mutual funds. Shares owned by individuals account for 2.40%. As the largest shareholder in STT with 9.00% of the stake, The Vanguard Group, Inc. holds 33,083,173 shares worth 33,083,173. A second-largest stockholder of STT, Dodge & Cox, holds 22,260,604 shares, controlling over 6.06% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in STT, holding 18,678,334 shares or 5.08% stake. With a 4.23% stake in STT, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 15,566,600 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.11% of STT stock, is the second-largest Mutual Fund holder. It holds 7,751,971 shares valued at 529.85 million. Vanguard 500 Index Fund holds 1.67% of the stake in STT, owning 6,141,347 shares worth 419.76 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STT since 17 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With STT analysts setting a high price target of $102.00 and a low target of $71.00, the average target price over the next 12 months is $80.93. Based on these targets, STT could surge 50.51% to reach the target high and rise by 4.77% to reach the target low. Reaching the average price target will result in a growth of 19.42% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. STT will report FY 2022 earnings on 01/18/2023. Analysts have provided yearly estimates in a range of $7.34 being high and $6.70 being low. For STT, this leads to a yearly average estimate of $7.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. State Street Corporation surprised analysts by $0.21 when it reported $1.94 EPS against a consensus estimate of $1.73. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is $1.87 and the low estimate is $1.70. The average estimate for the next quarter is thus $1.78.
Summary of Insider Activity:
Insiders traded STT stock several times over the past three months with 2 Buys and 5 Sells. In these transactions, 10,128 shares were bought while 11,527 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 48 over the past year. The total number of shares bought during that period was 432,865 while 356,850 shares were sold.