State Street (NYSE:STT) Shares Gap Down – What’s Next?
by Sarita Garza · The Markets DailyState Street Corporation (NYSE:STT – Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $174.10, but opened at $161.90. State Street shares last traded at $159.6170, with a volume of 922,409 shares trading hands.
Key Headlines Impacting State Street
Here are the key news stories impacting State Street this week:
- Positive Sentiment: Third-quarter diluted EPS was $3.69, exceeding the $3.65–$3.68 consensus range and rising sharply from $2.78 a year earlier. Revenue increased 12.9% year over year to approximately $4.0 billion. State Street Corporation Tops Q3 Earnings Estimates
- Positive Sentiment: Operating trends remained favorable: fee revenue rose 11%, net interest income increased 21% to $864 million, assets under custody or administration grew 15% to $59.2 trillion, and assets under management climbed 16% to $6.3 trillion. State Street also returned $651 million to shareholders through buybacks and dividends. State Street Posts Third-Quarter Results
- Neutral Sentiment: The board elected Alexander Vollert, a former AXA operations chief with technology and transformation experience, as an independent director. The appointment could support State Street’s operational and digital initiatives but is unlikely to materially affect near-term earnings. State Street Elects Alexander Vollert
- Negative Sentiment: Revenue of $4.004 billion fell short of the roughly $4.03 billion analyst estimate and declined 1% sequentially. Expenses increased 8% to $2.62 billion, while reports characterized the quarter and updated FY26 outlook as mixed, limiting the benefit of the earnings beat. State Street Reports Mixed Third-Quarter Results
Wall Street Analyst Weigh In
STT has been the topic of several recent analyst reports. TD Cowen started coverage on State Street in a report on Thursday, October 8th. They set a “buy” rating and a $205.00 target price on the stock. BMO Capital Markets decreased their price target on State Street from $212.00 to $200.00 and set an “outperform” rating for the company in a research note on Tuesday, October 6th. Evercore set a $200.00 price target on State Street in a research note on Monday, July 20th. Truist Financial lowered their price target on State Street from $191.00 to $190.00 and set a “hold” rating on the stock in a research report on Tuesday, October 6th. Finally, Bank of America boosted their price objective on State Street from $160.00 to $190.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, State Street currently has a consensus rating of “Moderate Buy” and a consensus price target of $193.38.
View Our Latest Report on State Street
State Street Stock Down 6.0%
The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. The company has a market capitalization of $44.94 billion, a price-to-earnings ratio of 14.41, a P/E/G ratio of 0.83 and a beta of 1.41. The stock’s fifty day simple moving average is $185.34 and its two-hundred day simple moving average is $168.99.
State Street (NYSE:STT – Get Free Report) last posted its quarterly earnings data on Wednesday, October 14th. The asset manager reported $3.69 earnings per share for the quarter, beating the consensus estimate of $3.68 by $0.01. The company had revenue of $4 billion during the quarter, compared to analyst estimates of $4.03 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The business’s revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter last year, the firm posted $2.78 EPS. On average, sell-side analysts anticipate that State Street Corporation will post 13.80 EPS for the current year.
Insider Buying and Selling
In related news, CEO Ronald O’Hanley sold 14,553 shares of the stock in a transaction that occurred on Tuesday, July 21st. The shares were sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the completion of the sale, the chief executive officer directly owned 240,959 shares of the company’s stock, valued at $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 9,758 shares of the firm’s stock in a transaction that occurred on Friday, July 24th. The stock was sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the sale, the executive vice president owned 49,794 shares of the company’s stock, valued at $9,187,988.88. The trade was a 16.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.27% of the stock is owned by insiders.
Institutional Investors Weigh In On State Street
A number of institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of State Street in the 2nd quarter worth $4,139,389,000. State Street Corp raised its position in shares of State Street by 1.2% during the second quarter. State Street Corp now owns 13,538,311 shares of the asset manager’s stock worth $2,296,098,000 after purchasing an additional 163,362 shares during the period. Regents of The University of California raised its position in shares of State Street by 15.6% during the first quarter. Regents of The University of California now owns 10,065,118 shares of the asset manager’s stock worth $1,273,841,000 after purchasing an additional 1,358,923 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of State Street by 4.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,962,274 shares of the asset manager’s stock worth $502,402,000 after purchasing an additional 137,798 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of State Street by 1.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,101,952 shares of the asset manager’s stock valued at $392,539,000 after purchasing an additional 51,754 shares during the last quarter. Institutional investors and hedge funds own 87.44% of the company’s stock.
State Street Company Profile
State Street Corporation (NYSE: STT) is a financial services company that provides institutional investors, asset managers, asset owners, insurance companies, official institutions and other organizations with investment servicing, investment management and related financial services. Its offerings include custody and fund administration, accounting, transfer agency, collateral management, securities lending, foreign exchange, trading and other capital markets services.
Through State Street Investment Management, the company manages investment strategies and offers products such as exchange-traded funds, index strategies, active strategies and other portfolio solutions.