State Street Corporation (STT) shares are trading at lower $63.51 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $72.12.
To add more color to this target, the company’s high over the last year is $85.89 and the low is $42.10. Over the last 52 weeks, STT is down -3.41% while the S&P 500 is up 12.53%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, STT reported a profit of $478.0 million. State Street Corporation also saw revenues increase to $520.0 million. In addition, STT has free cash flow of -$268.0 million as of 09-2020.
STT booked profit margins of 75.80%, its Return on Equity (ROE) is 10.20%, and its Return on Assets is 0.80%. All told, it is clear that, STT needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. STT has a short ratio of 2.48 and outstanding shares of 352.59M.
STT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.0 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 6.27. Investors should also keep an eye on sector updates as STT has historically followed its peers on positive news.
All told, State Street Corporation STT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, STT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
State Street Corporation STT is now commanding a market cap of 22.51B and a float of 351.11M. STT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of STT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in STT, either long or short, and we have not been compensated for this article.