State Street Q3 EPS Beats by $0.21 as Revenue Climbs 8.8% to $3.55B
State Street reported Q3 EPS of $2.78, beating consensus by $0.21, while revenue rose 8.8% year-over-year to $3.55 billion. The company declared a $0.84 quarterly dividend (2.5% yield) and saw institutional stakes shift after Asset Management One cut its position 2.9%.
1. Asset Management One Co. Ltd. Reduces Stake
In the third quarter, Asset Management One Co. Ltd. trimmed its holdings in State Street Corporation by 2.9%, selling 4,068 shares and retaining 137,493 shares valued at approximately $15.95 million as of the most recent SEC filing. This reduction reflects the firm’s tactical rebalancing of its asset-management exposure and signals a modest shift in its portfolio allocation away from custody and fund administration services.
2. Other Institutional Adjustments
Several hedge funds and institutional investors also adjusted their positions during the same period. DMKC Advisory Services LLC increased its stake by 2.9%, adding 662 shares to reach 23,734 shares valued at $2.75 million. Global Retirement Partners LLC boosted its holdings by 7.7% with an additional 105 shares, bringing its total to 1,470 shares worth $171,000. Verity & Verity LLC acquired 1,268 more shares, raising its stake by 0.5% to 269,037 shares valued at $31.21 million. New entrants included PDS Planning Inc, which opened a position valued at $206,000, while SJS Investment Consulting Inc. dramatically expanded its stake by 2,142.9% through the purchase of 300 shares, bringing its total to 314 shares worth $36,000. Institutional and hedge fund ownership now stands at 87.44%.
3. Quarterly Earnings and Dividend Declaration
State Street reported third-quarter earnings of $2.78 per share, surpassing consensus estimates by $0.21, and generated revenue of $3.55 billion, up 8.8% year-over-year. The firm achieved a 13.37% return on equity and a net margin of 13.14%. On October 17th, management announced a quarterly dividend of $0.84 per share, payable January 12th to shareholders of record as of January 2nd, representing an annualized payout of $3.36 and a dividend yield of approximately 2.5%.
4. Analyst Ratings and Price Targets
Research firms have exhibited a generally bullish outlook on the company’s future performance. Citigroup raised its target from $136.00 to $150.00 and assigned a Buy rating, while Keefe, Bruyette & Woods boosted its target from $132.00 to $135.00 with an Outperform rating. Loop Capital set a $144.00 target, TD Cowen initiated coverage with a Buy recommendation, and Wall Street Zen downgraded to Sell. The consensus across thirteen analyst reports is a Moderate Buy with an average target price near $131.42, reflecting expectations for continued growth in fee-based revenues and custody assets under management.