State Street (NYSE:STT) Announces Quarterly Earnings Results

State Street (NYSE:STT) released its quarterly earnings results on Friday. The asset manager reported $2.97 earnings per share (EPS) for the quarter, topping the consensus estimate 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%. The firm’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same period last year, the company earned $2.60 EPS.

State Street Stock Up 1.0%

STT stock opened at $136.11 on Friday. The company has a market capitalization of $38.02 billion, a P/E ratio of 14.40, a price-to-earnings-growth ratio of 0.90 and a beta of 1.43. State Street has a 12 month low of $72.81 and a 12 month high of $137.05. The firm’s fifty day simple moving average is $125.07 and its 200-day simple moving average is $116.98. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.59 and a quick ratio of 0.59.

State Street Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, January 12th. Shareholders of record on Friday, January 2nd were paid a dividend of $0.84 per share. This represents a $3.36 annualized dividend and a yield of 2.5%. The ex-dividend date was Friday, January 2nd. State Street’s payout ratio is presently 35.56%.

Key Stories 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

Analysts Set New Price Targets

Several research analysts recently issued reports on STT shares. Wells Fargo & Company upped their target price on State Street from $121.00 to $129.00 and gave the company an “overweight” rating in a research report on Monday, October 20th. Citigroup upped their price objective on shares of State Street from $136.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, December 30th. Cowen reaffirmed a “buy” rating on shares of State Street in a research report on Wednesday, January 7th. The Goldman Sachs Group reissued a “buy” rating on shares of State Street in a research report on Tuesday, January 6th. Finally, Morgan Stanley restated an “overweight” rating and set a $168.00 price target on shares of State Street in a research note on Tuesday, December 16th. One research 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 assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $133.77.

Insider Transactions at State Street

In related news, EVP Michael L. Richards sold 1,500 shares of the business’s stock in a transaction on Monday, October 27th. The shares were sold at an average price of $117.24, for a total transaction of $175,860.00. Following the completion of the transaction, the executive vice president directly owned 38,626 shares in the company, valued at $4,528,512.24. The trade was a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.29% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On State Street

Several institutional investors and hedge funds have recently modified their holdings of the stock. JPL Wealth Management LLC acquired a new stake in State Street in the third quarter valued at approximately $29,000. Measured Wealth Private Client Group LLC acquired a new stake in State Street in the 3rd quarter valued at $35,000. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its stake 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 valued at $59,000 after acquiring an additional 160 shares during the period. Quarry LP purchased a new stake in State Street in the 3rd quarter worth $71,000. Finally, Johnson Financial Group Inc. acquired a new position in State Street during the third quarter worth $97,000. Institutional investors and hedge funds own 87.44% of the company’s stock.

State Street Company Profile

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.