Kathryn M. Horgan, Executive Vice President at State Street Corp (NYSE:STT), recently sold 12,500 shares of the company's common stock. The shares were sold at a price of $97.97 each, amounting to a total transaction value of approximately $1.22 million. Following this sale, Horgan retains ownership of 111,042 shares. The transaction was carried out under a pre-arranged trading plan, as noted in the filing.
In other recent news, State Street Corporation (NYSE:STT) has seen substantial activity in its financial operations. The company's Q3 earnings per share (EPS) of $2.26 surpassed expectations, driving a 7% growth in fee revenues and a 9% increase in total revenues. State Street also secured $466 billion in assets under custody/administration and recorded a record quarterly net inflow of $100 billion in its Global Advisors division. Despite these positive results, JPMorgan (NYSE:JPM) maintained an Underweight rating due to pricing pressures and slower revenue growth, while Keefe, Bruyette & Woods raised its price target following the earnings report.
State Street also issued $2.25 billion in senior notes, with net proceeds from the offering expected to be approximately $2.241 billion. The issuance was notable for its inclusion of five minority-owned broker-dealers as part of the underwriting syndicate, reflecting State Street's commitment to diversity and inclusion. The company also appointed Patricia Halliday to its Board of Directors, leveraging her thirty years of experience in the financial sector and background in risk management.
However, a study by zeb Consulting revealed a decline in profitability among asset managers, including State Street, predicting a continued decrease in profitability through 2028. This is partly due to investor preferences shifting towards lower-fee products like ETFs. Looking ahead, State Street aims for total fee revenue growth of 4% to 5% and net interest income growth of 4% to 5%.
InvestingPro Insights
As Kathryn M. Horgan's recent stock sale catches attention, it's worth examining State Street Corp's current financial position and market performance. According to InvestingPro data, State Street boasts a market capitalization of $28.98 billion, reflecting its significant presence in the financial services sector.
The company's stock has shown remarkable strength recently, with InvestingPro Tips highlighting a strong return over the last three months and a large price uptick over the last six months. In fact, State Street's stock is currently trading near its 52-week high, with a 99.32% proximity to this benchmark. This positive momentum is further evidenced by the impressive 45.49% total return over the past year.
State Street's financial health appears robust, with a P/E ratio of 15.45, suggesting 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 24.38%, indicates steady operational performance.
Investors may find State Street's dividend policy particularly attractive. An InvestingPro Tip reveals that the company has raised its dividend for 13 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. With a current dividend yield of 3.08%, State Street offers a compelling income opportunity for shareholders.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights with 8 more tips available for State Street Corp. These tips could provide valuable context for understanding the implications of executive stock transactions and the company's overall financial trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.