State Street Target of Unusually High Options Trading (NYSE:STT)

State Street Co. (NYSE:STT) was the target of unusually large options trading activity on Tuesday. Traders purchased 12,218 call options on the company. This is an increase of 1,030% compared to the average daily volume of 1,081 call options.

In other news, EVP Michael L. Richards sold 365 shares of the company’s stock in a transaction on Monday, March 1st. The shares were sold at an average price of $74.61, for a total value of $27,232.65. Following the transaction, the executive vice president now directly owns 24,420 shares of the company’s stock, valued at $1,821,976.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Michael L. Richards sold 533 shares of the stock in a transaction on Tuesday, February 23rd. The stock was sold at an average price of $74.39, for a total value of $39,649.87. Following the sale, the executive vice president now owns 17,315 shares of the company’s stock, valued at $1,288,062.85. The disclosure for this sale can be found here. Insiders sold 11,898 shares of company stock valued at $873,183 over the last three months. 0.28% of the stock is owned by insiders.

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. lifted its stake in State Street by 1.4% during the fourth quarter. BlackRock Inc. now owns 24,702,594 shares of the asset manager’s stock worth $1,797,851,000 after purchasing an additional 339,171 shares during the period. Ninety One UK Ltd raised its stake in State Street by 11.4% during the fourth quarter. Ninety One UK Ltd now owns 3,896,152 shares of the asset manager’s stock worth $283,562,000 after acquiring an additional 397,694 shares in the last quarter. Norges Bank acquired a new stake in shares of State Street in the 4th quarter valued at $273,200,000. Yacktman Asset Management LP grew its holdings in shares of State Street by 1.0% in the 1st quarter. Yacktman Asset Management LP now owns 3,550,416 shares of the asset manager’s stock worth $298,270,000 after purchasing an additional 35,827 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its holdings in State Street by 12.6% during the 1st quarter. The Manufacturers Life Insurance Company now owns 2,691,083 shares of the asset manager’s stock valued at $226,078,000 after purchasing an additional 300,168 shares during the last quarter. 91.77% of the stock is currently owned by hedge funds and other institutional investors.

Shares of State Street stock traded up $0.17 during midday trading on Tuesday, hitting $84.85. The company had a trading volume of 2,638,905 shares, compared to its average volume of 2,844,031. The stock has a market cap of $29.51 billion, a PE ratio of 12.74, a P/E/G ratio of 1.11 and a beta of 1.60. State Street has a 1-year low of $51.21 and a 1-year high of $87.89. The business’s 50 day simple moving average is $83.61 and its two-hundred day simple moving average is $74.98. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.50 and a quick ratio of 0.50.

State Street (NYSE:STT) last announced its quarterly earnings data on Thursday, April 15th. The asset manager reported $1.47 EPS for the quarter, beating the Zacks’ consensus estimate of $1.35 by $0.12. State Street had a net margin of 20.75% and a return on equity of 12.24%. The business had revenue of $2.95 billion during the quarter, compared to analyst estimates of $2.85 billion. During the same quarter in the prior year, the business earned $1.62 earnings per share. The firm’s revenue for the quarter was down 3.8% on a year-over-year basis. On average, sell-side analysts expect that State Street will post 6.58 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 15th. Investors of record on Tuesday, June 1st will be paid a $28.125 dividend. This represents a $112.50 dividend on an annualized basis and a dividend yield of 132.59%. This is a positive change from State Street’s previous quarterly dividend of $0.52. The ex-dividend date is Friday, May 28th. State Street’s dividend payout ratio is presently 33.71%.

STT has been the subject of several recent research reports. Credit Suisse Group boosted their price target on State Street from $78.00 to $81.00 and gave the company a “neutral” rating in a research note on Wednesday, January 20th. The Goldman Sachs Group lowered shares of State Street from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $77.00 to $75.00 in a research note on Tuesday, January 5th. Deutsche Bank Aktiengesellschaft raised their price target on shares of State Street from $97.00 to $100.00 and gave the company a “buy” rating in a report on Thursday, April 15th. Zacks Investment Research downgraded shares of State Street from a “buy” rating to a “hold” rating and set a $82.00 target price on the stock. in a research report on Monday, January 18th. Finally, Barclays raised their target price on State Street from $99.00 to $104.00 and gave the company an “overweight” rating in a report on Wednesday, April 7th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and six have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $82.07.

About State Street

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. It offers investment servicing products and services, including custody; product accounting; daily pricing and administration; master trust and master custody; depotbank; 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.

Further Reading: Cost of Equity

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