John Plansky, Executive Vice President at State Street Corp (NYSE:STT), recently sold a significant portion of the company's stock. According to a recent SEC filing, Plansky sold 13,859 shares of common stock on October 18, 2024. The shares were sold at a weighted average price of $91.32, with transactions occurring at prices ranging from $91.22 to $91.46. This transaction amounted to approximately $1.27 million. Following this sale, Plansky retains ownership of 55,108 shares of State Street Corp.
In other recent news, asset managers like BlackRock (NYSE:BLK), State Street, JPMorgan, and Goldman Sachs are witnessing a profitability squeeze, according to a study by zeb Consulting. The study reported a decrease in profits in 2023 to 0.082% of assets under management, down from 0.101% in 2021. This trend is anticipated to continue, potentially dipping to as low as 0.055% by 2028. A shift towards lower-fee products and increased interest rates have been identified as contributing factors.
State Street's third-quarter earnings per share (EPS) of $2.26, while robust, did not meet expectations. JPMorgan maintained an Underweight rating on the company, citing pricing pressure and slower revenue growth. Similarly, BofA Securities maintained its Underperform rating, suggesting other stocks may offer more attractive risk/reward opportunities.
However, Keefe, Bruyette & Woods raised its price target for State Street to $105, following a solid quarter with an EPS of $2.26, exceeding both their projection and the consensus estimate. State Street has set ambitious financial targets for the future, including total fee revenue growth of 4% to 5% and net interest income growth of 4% to 5%.
Deutsche Bank maintained a Hold rating on State Street, reflecting higher EPS estimates but also noted potential volatility in Net Interest Income and the impending departure of CFO Eric Aboaf in February 2025. Despite these challenges, State Street has several growth initiatives in place, including a partnership with Apollo Global Management (NYSE:APO) for private market opportunities and the launch of 20 new ETFs.
InvestingPro Insights
While John Plansky's recent sale of State Street Corp (NYSE:STT) shares might raise eyebrows, a deeper look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, State Street's stock has shown impressive momentum, with a 26.88% price total return over the past six months. This aligns with an InvestingPro Tip highlighting a "large price uptick over the last six months," suggesting strong investor confidence despite the executive's sale.
State Street's financial health appears robust, with a market capitalization of $26.9 billion and a P/E ratio of 14.13, indicating a reasonable valuation relative to earnings. The company's revenue growth of 4.38% over the last twelve months, coupled with a solid operating income margin of 22.06%, underscores its operational efficiency.
Notably, State Street has maintained a strong commitment to shareholder returns. An InvestingPro Tip reveals that the company "has maintained dividend payments for 54 consecutive years," a testament to its financial stability and shareholder-friendly policies. The current dividend yield stands at an attractive 3.32%, with a dividend growth rate of 10.14% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips on State Street Corp, providing a deeper understanding of the company's prospects and potential risks.
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