State Street Investment Management spustila ETF UCBG zaměřené na endowmentovou strategii UC Investments. Start podpořila investice UC ve výši 2,5 miliardy USD, největší v historii amerického ETF.
BOSTON & OAKLAND, Calif.--(BUSINESS WIRE)--State Street Investment Management today announced the launch of the State Street® SPDR® UC Investments 90/10 Endowment Strategy Index ETF (“UCBG”), a new asset allocation ETF developed in collaboration with UC Investments (“UC”), the investment arm of the University of California and the index provider for the fund. The launch is backed by a $2.5 billion investment from UC, making it the largest ever U.S.-listed ETF launch.1
The fund seeks to track the UC Investments 90/10 Endowment Strategy Index, which combines broad U.S. equity exposure with short-duration investment-grade corporate bond exposure. The index allocates 90% of its weight to the S&P 500® Index, representing large-cap U.S. equities, and 10% to the S&P U.S. Investment Grade Corporate Bond 1-3 Year Index, which includes U.S. dollar-denominated investment-grade corporate bonds with maturities between one and three years.
UC and S&P Dow Jones Indices developed the custom index, which was inspired by UC’s $7.9 billion Blue and Gold Endowment Pool, a long-term public markets strategy that since its inception seven years ago, has been the best performing product within UC’s $236 billion investment portfolio.2 The strategy reflects UC’s conviction that low-cost, liquid, diversified public markets exposure can deliver compelling long-term returns while avoiding the complexity and illiquidity of traditional endowment models.
By bringing this philosophy into an ETF wrapper, UCBG offers long-term investors access to UC’s approach, which was previously available only within the institution’s portfolio and directly to employees of its 10 campuses and six medical centers through its retirement savings program, the nation’s second-largest public defined contribution program, behind only the federal government.
“At UC Investments, we focus on building long term, cost-effective portfolios to support our hundreds of thousands of UC students, faculty, staff, and alumni for generations to come,” said Jagdeep Singh Bachher, the University of California’s Chief Investment Officer. “This record-breaking ETF launch makes our institutional investment philosophy available to a broader community of investors through the transparency, efficiency and accessibility of the ETF structure, while staying true to the principles that have guided our investment approach.”
The ETF builds on State Street’s longstanding relationship with UC Investments. Today, State Street Investment Management provides asset management services to UC Investments’ $236 billion3 portfolio across pension, endowment, and other assets, while State Street Bank and Trust Company provides custody and other investment services.
"Our relationship with UC Investments spans more than two decades and has always been driven by innovation. With this launch, we are bringing an endowment-inspired strategy to a far broader range of investors, delivered with the low cost and transparency that make ETFs so powerful," said Ronald O'Hanley, Chairman and Chief Executive Officer of State Street Corporation.
“This partnership demonstrates what’s possible when a leading asset owner and asset manager work together to turn a successful institutional investment strategy into an accessible solution for investors,” said Yie-Hsin Hung, President and Chief Executive Officer of State Street Investment Management. “It reflects our commitment to helping clients extend their investment priorities to new markets and investor communities.”
About State Street Investment Management
At State Street Investment Management, we have been helping create better outcomes for institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $6 trillion in assets managed*, clients in 60 countries, and a global network of strategic partners, we use our scale to deliver a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go.
*This figure is presented as of June 30, 2026 and includes ETF AUM of $2,203.98 billion USD of which approximately $156.81 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.
About UC Investments
UC Investments manages the University of California’s retirement, endowment, working capital, and cash assets. Serving students, alumni, faculty, and staff, UC Investments provides fiduciary oversight and long-term stewardship of the university’s $236 billion investment portfolio. Visit here for more.
Important Risk Information
State Street Global Advisors (SSGA) is now State Street Investment Management. Please click here for more information.
Investing involves risk including the risk of loss of principal.
The Index is not intended to replicate the exact asset allocation of any endowment pool of UC Investments and, therefore, the Fund’s returns may differ from the returns of UC Investments' endowment pools.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.
Funds managed with an index investment strategy attempt to track the performance of an unmanaged index of securities, regardless of the current or projected performance of the index or of the actual securities comprising the index. This differs from an actively managed fund, which typically seeks to outperform a benchmark index. As a result, the performance of a fund managed with an index investment strategy may be less favorable than if such fund employed an active strategy. While a fund managed with an index investment strategy seeks to track the performance of an index as closely as possible, the fund’s return may not match or achieve a high degree of correlation with the return of the index due to operating expenses, transaction costs, and cash flows.
Returns on investments in stocks of large companies could trail the returns on investments in stocks of smaller and mid-sized companies.
Debt Securities Risk: The value of the debt securities may increase or decrease as a result of the following: market fluctuations, changes in interest rates, inability of issuers to repay principal and interest or illiquidity in the debt securities markets.
Income Risk: The Fund's income may decline due to falling interest rates or other factors. Issuers of securities held by the Fund may call or redeem the securities during periods of falling interest rates, and the Fund would likely be required to reinvest in securities paying lower interest rates. If an obligation held by the Fund is prepaid, the Fund may have to reinvest the prepayment in other obligations paying income at lower rates. A reduction in the income earned by the Fund may limit the Fund's ability to achieve its objective.
Market Risk: The Fund’s investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile, and prices of investments can change substantially due to various factors, including, but not limited to, economic growth or recession, changes in interest rates, inflation, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, military conflicts, acts of terrorism, trade policy changes or disputes, the threat or actual imposition of tariffs, natural disasters, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.
Intellectual Property Information: The S&P 500® Index is a product of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by State Street Global Advisors. S&P®, SPDR®, S&P 500®, US 500 and the 500 are trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by State Street Global Advisors. The fund is not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of these indices.
Distributor: State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit statestreet.com/im. Read it carefully.
Not FDIC insured. No bank guarantee. May lose value.
Allworth Financial LP ve 2. čtvrtletí koupila nový podíl ve společnosti State Street za zhruba 581 000 USD. Do akcie zároveň výrazně přitékají i další institucionální investoři.
Allworth Financial LP purchased a new stake in shares of State Street Corporation (NYSE:STT – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 3,426 shares of the asset manager’s stock, valued at approximately $581,000.
Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in State Street in the 2nd quarter valued at about $4,139,389,000. Regents of The University of California lifted its position in shares of State Street by 211.2% during the 4th quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager’s stock worth $1,123,186,000 after buying an additional 5,908,370 shares in the last quarter. Norges Bank bought a new position in shares of State Street during the 4th quarter worth approximately $303,483,000. Bank of New York Mellon Corp purchased a new position in shares of State Street in the 2nd quarter worth approximately $301,393,000. Finally, Pinebridge Investments LLC bought a new position in State Street in the 4th quarter valued at $178,705,000. 87.44% of the stock is currently owned by hedge funds and other institutional investors.
State Street Price Performance STT opened at $187.22 on Monday. The company has a market capitalization of $51.43 billion, a price-to-earnings ratio of 16.51, a PEG ratio of 0.77 and a beta of 1.41. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. The firm has a 50-day moving average price of $180.11 and a 200-day moving average price of $153.94. State Street Corporation has a twelve month low of $104.64 and a twelve month high of $195.18.
State Street (NYSE:STT – Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.31. The company had revenue of $4.05 billion for the quarter, compared to analyst estimates of $3.88 billion. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company’s quarterly revenue was up 23.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.04 earnings per share. Equities analysts expect that State Street Corporation will post 13.75 EPS for the current year. State Street Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be paid a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Thursday, October 1st. This is a positive change from State Street’s previous quarterly dividend of $0.84. State Street’s dividend payout ratio is presently 29.63%.
Insider Buying and Selling In other news, CEO Hanley Ronald P. O sold 14,553 shares of the company’s stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the sale, the chief executive officer directly owned 240,959 shares in the company, valued at $44,377,419.03. This represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $162.14, for a total transaction of $243,210.00. Following the transaction, the executive vice president directly owned 41,827 shares of the company’s stock, valued at approximately $6,781,829.78. This represents a 3.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 49,576 shares of company stock valued at $8,415,875. Corporate insiders own 0.27% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts recently weighed in on the stock. Wells Fargo & Company boosted their price target on shares of State Street from $196.00 to $215.00 and gave the stock an “overweight” rating in a report on Friday, July 17th. JPMorgan Chase & Co. raised their price objective on shares of State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Weiss Ratings raised shares of State Street from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, May 28th. Citigroup upped their price objective on State Street from $193.00 to $210.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Finally, UBS Group set a $176.00 price objective on State Street in a report on Friday, June 26th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $185.38.
Check Out Our Latest Analysis on STT
About State Street (Free Report)
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.
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U velkých regionálních bank má v dohledné době zůstat kvalita aktiv utlumená, ale nižší sazby, lepší poptávka po úvěrech a digitalizace mají dál podporovat čistý úrokový výnos i marže.
For Immediate ReleaseChicago, IL – August 20, 2026 – Today, Zacks Equity U.S. Bancorp (USB - Free Report) , State Street Corp. (STT - Free Report) and Northern Trust Corp. (NTRS - Free Report)
The Zacks Major Regional Banks’ asset quality is expected to remain subdued in the near term due to a challenging operating backdrop. While the Federal Reserve is likely to keep rates unchanged in the near term, industry players should continue benefiting from relatively lower rates. Combined with decent economic growth and improving loan demand, this is expected to support expansion in net interest income and margins.
Business restructuring and expansion efforts and ongoing digitization should provide additional support. Major regional banks like U.S. Bancorp, State Street Corp. and Northern Trust Corp. are well-positioned to gain.
About the IndustryThe Zacks Major Regional Banks industry includes the nation’s largest banks in terms of assets, with most operating globally. The financial performance of these banks largely depends on the nation’s economic health. As banks are involved in numerous complex financial activities, they are required to comply with stringent regulations set by the Federal Reserve and other regulatory agencies.
Apart from traditional banking services, which are the source of net interest income (NII), major regional banks provide a wide array of other financial services and products to retail, corporate and institutional clients, both domestic and global. These include credit and debit cards, mortgage banking, wealth management and investment banking, among others. A significant revenue source for these banks is fees and commissions earned from these services.
4 Key Themes to Influence the Major Regional Banks IndustryNo Change in Interest Rates:The Fed has paused interest rate cuts and turned hawkish because of rising inflation numbers amid the ongoing geopolitical conflict. Market participants expect at least one rate hike before 2026 ends, with no chance of further cuts till mid-2027. As such, major regional banks are likely to keep benefiting from relatively lower rates (compared with historically higher rates in 2022 and 2023) as deposit and funding costs fall/stabilize and the lending backdrop gradually improves. As such, industry players’ NII and margins are expected to keep expanding.
Rise in Loan Demand: The central bank’s aggressive monetary tightening in 2021 and 2022 weighed on loan demand amid concerns over a potential economic downturn or recession. However, the trend has reversed since then. According to the Fed’s Summary of Economic Projections released in June 2026, U.S. economic growth is expected to remain decent. This, coupled with lower borrowing costs and greater clarity on several macroeconomic factors, is likely to support loan demand. Major regional banks are expected to see a solid increase in demand for both wholesale and consumer loans.
Restructuring Initiatives: Major regional banks are taking steps to diversify their revenue streams and reduce their reliance on spread income. Business restructuring remains a key priority, enabling banks to support technological advancement, expand their domestic and international operations, and enhance profitability.
Industry participants are investing heavily in artificial intelligence and other digital platforms, while also pursuing partnerships with or acquisitions of technology and service providers. Several major regional banks are aggressively expanding their footprints across the United States and international markets. At the same time, many are reassessing their business models to streamline operations, improve efficiency and exit less profitable businesses.
Asset Quality: Mounting worries about the economy and uncertainty around trade policies pursued by the Trump administration have added to inflationary pressure. Renewed Middle East tensions and oil-shock risks are further lifting costs, squeezing household and business budgets and, in turn, weakening borrowers’ repayment capacity. In response, major regional banks are less likely to lower loan-loss reserves to cushion against potential defaults and payment delays. While disciplined underwriting and generally resilient borrowers have helped industry players keep asset quality under control, several key credit indicators have drifted above pre-pandemic levels.
Zacks Industry Rank Indicates OptimismThe Zacks Major Regional Banks industry is a nine-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #55, which places it in the top 22% of more than 240 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outpace the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of an encouraging earnings outlook for the constituent companies in aggregate. The aggregate estimate revision trend reflects an improving situation. Over the past year, the industry’s earnings estimates for 2026 have been revised 9% upward, and those for 2027 are up 7.9%.
Before we present a handful of major regional bank stocks to bet on, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry's Stock Market Performance Is SolidThe Zacks Major Regional Banks industry outperformed the S&P 500 composite and the sector over the past two years.
Stocks in this industry have collectively jumped 64.6% over the past two years. In the same time frame, the Zacks S&P 500 composite has surged 42.8%, and the Zacks Finance sector rallied 35.3%.
Industry's Valuation is AttractiveOne might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), which is commonly used for valuing banks because of large variations in their earnings from one quarter to the next.
The industry currently has a trailing 12-month P/TBV of 3.08X. This compares with the highest level of 3.21X, the lowest of 1.85X and the median of 2.41X over the past five years. The industry is trading at a huge discount compared with the market at large, as the trailing 12-month P/TBV for the S&P 500 composite is 10.18X.
As finance stocks typically have a lower P/TBV ratio, comparing major regional banks with the S&P 500 may not make sense to many investors. However, comparing the group’s P/TBV ratio with that of the broader sector ensures that the group is trading at a solid discount. The Zacks Finance sector’s trailing 12-month P/TBV came in at 6.05X. This is above the Zacks Major Regional Banks industry’s ratio.
3 Major Regional Banks to ConsiderU.S. Bancorp: Headquartered in Minneapolis, MN, U.S. Bancorp provides banking and investment services, mainly operating in the Midwest and West regions of the United States. The company has expanded through several strategic acquisitions over the years, which have strengthened its market position, digital capabilities and diversified revenue streams.
In June 2026, the company completed the acquisition of BTIG, expanding its capital markets platform with institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory capabilities. This, along with several other expansion efforts, will continue to strengthen USB’s fee-based businesses.
The company’s NII has been rising over the past few years. Going forward, less deposit migration, relatively lower rates and stabilizing funding costs will continue to support NII and NIM expansion. U.S. Bancorp has experienced steady growth in total loans and deposits during the past few years as it continues to expand and deepen relationships with current customers as well as acquire new customers and market share.
The company’s capital distributions seem impressive. Following the successful completion of the 2026 stress test, management plans to increase the quarterly dividend by 4% to 54 cents per share in the third quarter of 2026, subject to board approval. The company also continues to repurchase shares under its $5 billion buyback program. Given its consistent earnings and decent liquidity position, the company’s capital deployment activities seem to be sustainable.
USB, which carries a Zacks Rank #2 (Buy), has a market cap of $100.9 billion. The Zacks Consensus Estimate for earnings indicates growth of 13% and 10.4% for 2026 and 2027, respectively. The stock has rallied 21.6% over the past three months.
State Street:Headquartered in Boston, MA, State Street provides a range of products and services for institutional investors worldwide through its subsidiaries. As of June 30, 2026, the company reported record assets under custody and administration (AUC/A) of $57.9 trillion and assets under management (AUM) of $6.28 trillion.
State Street's fee-based model continues to benefit from its scale in custody, asset management and markets, supported by strong flows, product expansion and broader distribution. While the company’s total fee revenues declined in 2022 and 2023, the metric saw a four-year (2021-2025) CAGR of 2.3%, mainly driven by higher client activity and significant market volatility. AUC/A and AUM recorded a CAGR of 5.3% and 8.2%, respectively, in the same time frame.
At the end of the first quarter, STT reported $2.93 trillion of AUC/A to be installed and $335 million of servicing fee revenues to be installed. This provides better forward visibility beyond near-term market swings, while continued Alpha mandate wins reinforce demand for integrated front-to-back solutions. State Street remains well-placed for fundamental business activities, given its global exposure and a broad array of innovative products and services.
This Zacks Rank #2 company has been using partnerships, minority stakes and strategic bolt-on acquisitions to expand growth platforms across investment, distribution and technology. Despite lower rates, State Street’s NII and net interest margin are expected to witness decent improvements in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
STT has a market cap of $48.7 billion. The Zacks Consensus Estimate for earnings indicates growth of 30.5% for 2026 and 11.2% for 2027. Over the past three months, the stock has gained 27.2%.
Northern Trust: With total assets worth $179.3 billion as of June 30, 2026, Northern Trust is a leading provider of wealth management, asset servicing, asset management and banking solutions to corporations, institutions, families and individuals.
Organic growth is the company’s key strength. Its revenues witnessed a CAGR of 5.7% over the last five years (2020-2025), driven by rising non-interest income and NII. As the client base expands, the company expects to see a steady rise in loan activity, particularly as its wealth management services attract more clients. This ongoing focus on wealth management is expected to drive growth in the lending portfolio.
Following the launch of Family Office Solutions for ultra-high-net-worth clients, NTRS’ investment management division, Northern Trust Asset Management, partnered with Envestnet in January to expand access to its tax-managed direct indexing solutions, enhancing distribution reach for this client segment. These initiatives, along with continued asset servicing wins and low double-digit wealth management trust fee growth, are expected to support fee income and strengthen organic growth momentum.
NTRS is undertaking expense management efforts to tackle expense growth and support operating leverage. It is focused on disciplined headcount management, vendor consolidation, rationalization of its real estate footprint and process automation. Through such efforts, it will likely improve productivity and meet the financial targets.
NTRS has a market cap of $34.9 billion. The Zacks Consensus Estimate for earnings indicates 28.6% and 9.1% growth in 2026 and 2027, respectively. The company, which carries a Zacks Rank of 2, witnessed a 15.6% rise in its stock price over the past three months.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release
State Street Corporation (NYSE:STT – Get Free Report)’s stock price hit a new 52-week high on Monday . The company traded as high as $194.82 and last traded at $193.8670, with a volume of 83442 shares. The stock had previously closed at $191.74.
Wall Street Analyst Weigh In A number of research firms have recently issued reports on STT. Argus raised their price target on shares of State Street from $140.00 to $168.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Truist Financial reaffirmed a “hold” rating and set a $191.00 price objective (up from $176.00) on shares of State Street in a research report on Friday, July 17th. Royal Bank Of Canada increased their price objective on shares of State Street from $155.00 to $196.00 and gave the stock a “sector perform” rating in a research note on Friday, July 17th. Barclays raised their target price on shares of State Street from $165.00 to $200.00 and gave the stock an “equal weight” rating in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. upped their target price on State Street from $176.50 to $187.00 and gave the company a “neutral” rating in a report on Tuesday, August 4th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, State Street has a consensus rating of “Moderate Buy” and a consensus price target of $185.38.
Read Our Latest Analysis on State Street
State Street Trading Down 0.5% The firm has a 50-day moving average of $178.87 and a 200 day moving average of $152.80. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.04. The stock has a market capitalization of $52.75 billion, a price-to-earnings ratio of 16.93, a PEG ratio of 0.79 and a beta of 1.41. State Street (NYSE:STT – Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.34 by $0.31. State Street had a return on equity of 15.26% and a net margin of 15.02%.The company had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the previous year, the firm posted $2.04 EPS. The firm’s quarterly revenue was up 23.3% on a year-over-year basis. As a group, equities analysts predict that State Street Corporation will post 13.75 EPS for the current fiscal year.
State Street Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be paid a dividend of $0.92 per share. This is an increase from State Street’s previous quarterly dividend of $0.84. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Thursday, October 1st. State Street’s dividend payout ratio (DPR) is presently 29.63%.
Insider Buying and Selling In other State Street news, EVP W. Bradford Hu sold 9,758 shares of the firm’s stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $184.52, for a total transaction of $1,800,546.16. Following the transaction, the executive vice president owned 49,794 shares of the company’s stock, valued at approximately $9,187,988.88. This trade represents a 16.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total transaction of $243,210.00. Following the sale, the executive vice president owned 41,827 shares in the company, valued at $6,781,829.78. This trade represents a 3.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 49,576 shares of company stock valued at $8,415,875 over the last 90 days. 0.27% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of State Street during the 2nd quarter valued at $4,139,389,000. Regents of The University of California lifted its holdings in shares of State Street by 211.2% in the fourth quarter. Regents of The University of California now owns 8,706,195 shares of the asset manager’s stock valued at $1,123,186,000 after buying an additional 5,908,370 shares during the period. Norges Bank bought a new position in State Street during the fourth quarter valued at about $303,483,000. Legal & General Group Plc bought a new position in State Street during the second quarter valued at about $330,849,000. Finally, Bank of New York Mellon Corp bought a new stake in State Street in the second quarter worth about $301,393,000. 87.44% of the stock is currently owned by institutional investors.
About State Street (Get Free Report)
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.
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State Street včera během obchodování dosáhla historického maxima 195,18 USD a uzavřela na 191,74 USD. Firma zároveň zvýšila výhled růstu čistého úrokového výnosu pro rok 2026 na 14–15 %.
Key Takeaways STT touches an all-time high and has outperformed the industry and peers over the past year. STT raises its 2026 NII growth outlook to 14-15% as NIM and funding conditions improve. State Street benefits from rising AUM, AUC/A, servicing wins and strategic investments in AI and technology. State Street Corporation (STT - Free Report) shares have performed remarkably well so far this year. The stock touched its all-time high of $195.18 during yesterday's trading session before closing at $191.74.
STT shares have rallied 73.7% over the past year, outperforming the industry’s 41% rise. When compared with its close peers, the performance is noticeably stronger. The Bank of New York Mellon Corporation (BNY - Free Report) has gained 62.5%, while JPMorgan Chase & Co. (JPM - Free Report) has rallied 24.2% in the same timeframe.
One-Year Price Performance
Image Source: Zacks Investment Research
Now, investors may wonder if the stock is worth adding to their portfolio at this level. To answer that, let’s delve deeper and examine the factors driving its investment appeal.
Factors Driving State Street’s PerformanceImproving Net Interest Income (NII) Outlook: State Street's NII remains a favorable contributor despite an uncertain rate backdrop, having recorded a four-year compound annual growth rate (CAGR) of 11.6% through 2025. Despite rising funding costs and shrinking non-interest-bearing deposit balances, its net interest margin (NIM) contracted to 1.00% in 2025 from 1.10% in 2024 and 1.20% in 2023. In the first half of 2026, both NII and NIM expanded, reflecting an improved funding mix and investment portfolio repricing. Management raised its 2026 NII growth outlook to 14-15%, from its prior 8-10% range, assuming average deposit balances remain at second-quarter 2026 levels. This indicates that balance sheet mix, deposit stability and portfolio repricing will continue to support NII and NIM even if broader balance sheet growth remains modest.
NII and NIM Quarterly Growth Trend
Image Source: State Street Corporation
Strong Fee-Based Growth: State Street's fee-based model continues to benefit from its scale in custody, asset management and markets, supported by strong flows, product expansion and broader distribution. While total fee revenues declined in 2022 and 2023, the metric recorded a four-year (2021-2025) CAGR of 2.3%. Asset Under Custody/Administration (AUC/A) and Asset Under Management (AUM) recorded CAGRs of 5.3% and 8.2%, respectively, during the same period. Fee income, AUC/A and AUM continued to trend higher in the first six months of 2026, supported by market levels, robust inflows and client activity. Management now expects fee revenues to increase 12-13% in 2026, up from its prior guidance of 7-9%, driven by continued organic growth in servicing and management fees and healthy Markets activity.
At the end of the second quarter, total AUC/A reached a record $57.9 trillion, while AUM hit a record $6.3 trillion. State Street generated $384 billion in new AUC/A wins and $87 million in servicing fee revenue wins during the quarter. The company also had $2.93 trillion of AUC/A and $335 million of servicing fee revenues yet to be installed. AUM net inflows totaled $114 billion, led by $81 billion into Index Strategies & Solutions and $35 billion into Cash, partly offset by $2 billion of outflows from Active, Alternatives & Other.
State Street has launched tokenized money market and stablecoin reserve offerings, strengthening its presence across ETFs, index strategies, digital assets and wealth channels. The strong AUC/A and AUM growth, robust inflows, servicing wins and sizeable uninstalled backlog provide better forward visibility, while continued Alpha mandate wins support demand for integrated front-to-back solutions. These factors, along with its global scale and strategic acquisitions, are expected to support fee revenue growth.
Solid Earnings Momentum: State Street surpassed the Zacks Consensus Estimate for earnings in recent quarters. The consensus estimates point to continued earnings growth in 2026 and 2027, with earnings expected to reach $13.75 per share in 2026 and $15.30 in 2027, up from $10.30 reported in 2025. This positive outlook supports management’s higher 2026 fee income and NII expectations, along with its medium-term targets of a 35% pre-tax margin, mid-20s ROTCE, positive operating leverage and greater platform scale.
Earnings Estimate
Image Source: Zacks Investment Research
Strategic Expansion and Financial Strength: State Street is leveraging partnerships, minority investments and strategic bolt-on acquisitions to expand its investment, distribution and technology platforms. The company is also accelerating technology modernization and AI adoption to improve efficiency and reinvest in growth, targeting $1 billion in annual run-rate transformation benefits by 2029, including $750 million in productivity savings and $250 million in revenue uplift. Last year, it partnered with Apex Fintech Solutions, Apollo, Bridgewater, Blackstone, Ethic, smallcase and Van Lanschot Kempen, invested in Coller Capital and Groww AMC, expanded in the Middle East and acquired PriceStats and Mizuho’s global custody businesses outside Japan.
These initiatives were backed by a strong capital and liquidity position, providing flexibility to invest, support clients and return capital. As of June 30, 2026, long-term debt was $25.7 billion and other short-term borrowings were $4.4 billion, while cash, due from banks and interest-bearing deposits totaled about $149.5 billion. Its investment-grade ratings and solid liquidity position should enable State Street to meet its obligations while pursuing growth opportunities.
Enhanced Capital Returns: Following the clearance of the 2026 stress test, State Street increased its quarterly dividend by 9.5% to 92 cents per share. Over the past five years, the company hiked annual dividends six times, with an annual growth rate of 9.1%. In 2024, the company was authorized to repurchase shares worth up to $5 billion (with no expiration date). As of June 30, 2026, $1.7 billion worth of authorization remained available. The company continues to expect the 2026 total payout ratio to be approximately 80%. Supported by strong capital and earnings, State Street is well positioned to sustain higher capital returns.
STT's Valuation AnalysisIn terms of valuation, STT stock appears slightly expensive relative to the industry. The company is currently trading at a forward 12-month P/E multiple of 13.11X, which is higher than the industry’s 13.00X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Meanwhile, JPMorgan holds a P/E F12M ratio of 14.59, while BNY’s P/E F12M ratio stands at 16.63. Hence, State Street is trading at a discount compared with its peers.
Final Thoughts on State StreetWhile elevated investment spending, significant reliance on fee income, premium valuation and uncertainty surrounding market conditions remain near-term concerns, these risks appear manageable given State Street’s strong capital position, robust liquidity and improving NII and fee income outlook.
Further, STT’s scaled fee franchise, growing AUM and AUC/A, servicing wins, strategic acquisitions and continued investments in technology and AI strengthen its long-term earnings growth prospects.
Hence, STT appears to be a solid investment option for investors seeking exposure to a well-capitalized custody bank with a diversified fee-based franchise, improving profitability and sustainable growth prospects.
State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alberta Investment Management Corp. ve 2. čtvrtletí koupila 31 000 akcií State Street za zhruba 5,258 mil. USD. Firma zároveň zvýšila čtvrtletní dividendu na 0,92 USD na akcii z 0,84 USD.
Alberta Investment Management Corp acquired a new position in shares of State Street Corporation (NYSE:STT – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 31,000 shares of the asset manager’s stock, valued at approximately $5,258,000.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp bought a new position in State Street in the second quarter valued at $301,393,000. Focus Partners Advisor Solutions LLC bought a new stake in State Street during the second quarter worth about $484,000. Kelleher Financial Advisors bought a new stake in State Street during the second quarter worth about $33,000. Clearstead Trust LLC purchased a new position in shares of State Street in the 2nd quarter worth about $516,000. Finally, Bridgewater Advisors Inc. bought a new position in shares of State Street during the 2nd quarter valued at about $353,000. 87.44% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling In related news, CEO Hanley Ronald P. O sold 14,553 shares of the business’s stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $184.17, for a total transaction of $2,680,226.01. Following the transaction, the chief executive officer owned 240,959 shares in the company, valued at $44,377,419.03. The trade was a 5.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Bradford Hu sold 9,758 shares of the company’s stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $184.52, for a total value of $1,800,546.16. Following the transaction, the executive vice president directly owned 49,794 shares of the company’s stock, valued at $9,187,988.88. The trade was a 16.39% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 49,576 shares of company stock valued at $8,415,875 over the last ninety days. 0.27% of the stock is owned by insiders.
Wall Street Analysts Forecast Growth STT has been the subject of several research reports. Weiss Ratings raised State Street from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, May 28th. The Goldman Sachs Group lifted their price target on shares of State Street from $168.00 to $194.00 and gave the stock a “buy” rating in a research note on Tuesday, June 30th. JPMorgan Chase & Co. boosted their price objective on shares of State Street from $176.50 to $187.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Wells Fargo & Company upped their price objective on shares of State Street from $196.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Finally, Zacks Research raised shares of State Street from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $185.38. Get Our Latest Report on STT
State Street Stock Up 0.9% Shares of State Street stock opened at $193.48 on Tuesday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 0.59 and a current ratio of 0.59. State Street Corporation has a 52-week low of $104.64 and a 52-week high of $195.18. The stock has a market capitalization of $53.15 billion, a price-to-earnings ratio of 17.06, a P/E/G ratio of 0.79 and a beta of 1.41. The company’s 50 day moving average price is $178.29 and its 200-day moving average price is $152.35.
State Street (NYSE:STT – Get Free Report) last issued its earnings results on Thursday, July 16th. The asset manager reported $3.65 EPS for the quarter, topping the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $3.88 billion. During the same period in the previous year, the firm earned $2.04 earnings per share. The firm’s revenue for the quarter was up 23.3% on a year-over-year basis. Equities research analysts forecast that State Street Corporation will post 13.75 EPS for the current year.
State Street Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Thursday, October 1st will be issued a dividend of $0.92 per share. This is an increase from State Street’s previous quarterly dividend of $0.84. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Thursday, October 1st. State Street’s dividend payout ratio (DPR) is currently 29.63%.
About State Street (Free Report)
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.
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State Street se dohodla na koupi Santander CACEIS Latam Securities Services, čímž přidá asi 470 mld. USD v úschově a 225 mld. USD ve správě aktiv v Latinské Americe.
Key Takeaways State Street agreed to acquire Santander CACEIS Latam Securities Services to expand in Latin America.STT will add about $470B in AUC and $225B in AUA, strengthening custody and fund administration.State Street expects the deal to enhance services across Brazil, Mexico and Colombia, pending 2027 close. State Street Corporation (STT - Free Report) has signed an initial agreement to acquire Santander CACEIS Latam Securities Services, a joint venture (JV) owned by Santander Group and CACEIS. This is part of the company’s effort to expand its investment servicing footprint across Latin America.
The JV oversees approximately $470 billion in assets under custody (“AUC”) and $225 billion in assets under administration (“AUA”) as of June 30, 2026. The transaction will strengthen State Street’s presence in Brazil, Mexico and Colombia by expanding its custody, foreign exchange, fund administration and other middle- and back-office services. This will enable the company to better serve both regional and global institutional investors.
The financial terms of the deal have not been revealed yet. It is expected to be closed sometime in 2027, subject to regulatory approvals, employee consultation processes and other customary closing conditions.
Following the completion, State Street plans to retain the JV’s experienced local workforce and continue operating through its existing market licenses and regulatory frameworks. The company expects the combination of its global servicing platform with the JV’s local expertise to strengthen its ability to support clients with cross-border investment needs while expanding access to fast-growing Latin American markets.
Our Take on State Street’s Global Expansion StrategyThe impending acquisition is in line with State Street’s strategy of expanding its global investment servicing franchise through targeted acquisitions. It will strengthen the company’s presence across Brazil, Mexico and Colombia, further broadening its footprint in Latin America’s largest institutional investment markets.
State Street also continues to expand through new investment servicing mandates and rising client assets. As of June 30, 2026, the company reported record assets under custody and/or administration (AUC/A) of $57.86 trillion and record assets under management (AUM) of $6.28 trillion. This reflects continued business wins, client inflows and favorable market conditions.
Additionally, STT remains focused on investing in technology and enhancing its end-to-end servicing capabilities to support long-term revenue growth.
Over the past month, shares of State Street have gained 7.6%, outperforming the industry's growth of 5.3%
Image Source: Zacks Investment Research
At present, STT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Business Restructuring Steps Taken by Other Financial FirmsLast week, HSBC Holdings plc (HSBC - Free Report) agreed to sell its Singapore life and health insurance business to Allianz SE for $2.09 billion.
The divestiture aligns with HSBC's broader simplification and restructuring strategy of streamlining operations, exiting non-core businesses, redeploying capital to higher-return opportunities, and strengthening its core wealth management and wholesale banking franchises across Asia.
Earlier this month, Northern Trust Corporation (NTRS - Free Report) agreed to sell its guardianship services business to Wintrust Financial Corporation's subsidiary, Wintrust Private Trust Company.
The divestiture aligns with NTRS' broader strategy of strengthening its core wealth management, asset servicing, and asset management businesses while streamlining its portfolio and focusing investments on areas with stronger long-term growth potential.
Boston Common Asset Management LLC cut its holdings in State Street Corporation (NYSE:STT – Free Report) by 15.7% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 30,757 shares of the asset manager’s stock after selling 5,712 shares during the period. Boston Common Asset Management LLC’s holdings in State Street were worth $3,893,000 at the end of the most recent reporting period.
A number of other large investors also recently made changes to their positions in the business. Nordea Investment Management AB grew its holdings in State Street by 15.4% in the 4th quarter. Nordea Investment Management AB now owns 2,829,271 shares of the asset manager’s stock valued at $367,041,000 after buying an additional 377,568 shares during the period. Clean Yield Group lifted its holdings in shares of State Street by 8,247.4% during the 4th quarter. Clean Yield Group now owns 19,199 shares of the asset manager’s stock worth $2,477,000 after acquiring an additional 18,969 shares during the period. IFM Investors Pty Ltd boosted its position in shares of State Street by 9.7% in the first quarter. IFM Investors Pty Ltd now owns 84,534 shares of the asset manager’s stock worth $10,699,000 after acquiring an additional 7,469 shares during the last quarter. Concurrent Investment Advisors LLC acquired a new stake in shares of State Street in the fourth quarter worth approximately $1,959,000. Finally, Heritage Family Offices LLP acquired a new stake in shares of State Street in the fourth quarter worth approximately $1,220,000. Hedge funds and other institutional investors own 87.44% of the company’s stock.
State Street News Summary Here are the key news stories impacting State Street this week:
Positive Sentiment: State Street delivered a Q2 earnings beat, reporting $3.65 EPS on $4.05 billion in revenue versus expectations of $3.34 EPS and $3.88 billion in sales, supported by higher fee income, stronger net interest income, and no credit-loss provision. State Street Corporation (NYSE: STT) Reports Second-Quarter 2026 Financial Results Positive Sentiment: Management’s update showed strong operating momentum, with assets under custody and management reaching record levels and revenue growth accelerating sharply year over year, reinforcing confidence in the company’s earnings power. State Street’s quarterly profit jumps 56% on strong fee income Positive Sentiment: Several analysts turned more constructive after the results, including KBW and Wells Fargo, both lifting their price targets to $215, while RBC raised its target to $196, signaling expectations for additional upside. These Analysts Raise Their Forecasts On State Street Following Upbeat Q2 Results Neutral Sentiment: Truist reaffirmed its hold rating but still increased its target to $191, suggesting the earnings strength improved valuation expectations even without a bullish rating change. Benzinga analyst update on State Street Neutral Sentiment: Commentary on digital custody, ETF pricing pressure, and macro-driven operating leverage adds context, but the immediate stock move appears to be driven mainly by the earnings beat and analyst upgrades. State Street Q2: Macro Conditions Continue To Drive Healthy Operating Leverage Analysts Set New Price Targets STT has been the subject of several research analyst reports. Evercore set a $186.00 price target on shares of State Street and gave the stock an “outperform” rating in a research report on Monday, July 6th. Wells Fargo & Company boosted their price objective on shares of State Street from $196.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday. Argus upped their price objective on State Street from $140.00 to $168.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Truist Financial reaffirmed a “hold” rating and issued a $191.00 target price (up from $176.00) on shares of State Street in a research report on Friday. Finally, Seaport Research Partners reiterated a “buy” rating and issued a $170.00 target price on shares of State Street in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, State Street presently has a consensus rating of “Moderate Buy” and a consensus price target of $183.84.
Get Our Latest Research Report on State Street
State Street Trading Down 0.1% Shares of STT stock opened at $182.27 on Monday. The company has a quick ratio of 0.57, a current ratio of 0.59 and a debt-to-equity ratio of 1.04. State Street Corporation has a fifty-two week low of $104.64 and a fifty-two week high of $192.51. The firm’s 50 day moving average price is $165.83 and its two-hundred day moving average price is $144.18. The stock has a market cap of $50.45 billion, a price-to-earnings ratio of 16.07, a price-to-earnings-growth ratio of 0.90 and a beta of 1.42.
State Street (NYSE:STT – Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The asset manager reported $3.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.31. State Street had a net margin of 15.02% and a return on equity of 15.26%. The company had revenue of $4.05 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the prior year, the business earned $2.04 earnings per share. The business’s quarterly revenue was up 23.3% compared to the same quarter last year. On average, analysts anticipate that State Street Corporation will post 13.35 EPS for the current year.
State Street Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 13th. Investors of record on Thursday, October 1st will be issued a $0.92 dividend. The ex-dividend date is Thursday, October 1st. This represents a $3.68 annualized dividend and a yield of 2.0%. This is an increase from State Street’s previous quarterly dividend of $0.84. State Street’s payout ratio is currently 29.63%.
Insider Buying and Selling In other State Street news, CEO Hanley Ronald P. O sold 14,553 shares of the business’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $155.35, for a total transaction of $2,260,808.55. Following the transaction, the chief executive officer owned 255,512 shares in the company, valued at $39,693,789.20. The trade was a 5.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael L. Richards sold 1,500 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $162.14, for a total value of $243,210.00. Following the completion of the sale, the executive vice president directly owned 41,827 shares of the company’s stock, valued at $6,781,829.78. The trade was a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 37,876 shares of company stock valued at $5,866,583 in the last 90 days. 0.27% of the stock is currently owned by company insiders.
About State Street (Free Report)
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.
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State Street Corporation (STT - Free Report) came out with quarterly earnings of $3.65 per share, beating the Zacks Consensus Estimate of $3.3 per share. This compares to earnings of $2.53 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.61%. A quarter ago, it was expected that this company would post earnings of $2.6 per share when it actually produced earnings of $2.84, delivering a surprise of +9.23%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
State Street, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $4.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.95%. This compares to year-ago revenues of $3.45 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
State Street shares have added about 44.6% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for State Street?While State Street has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for State Street was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.41 on $3.91 billion in revenues for the coming quarter and $12.75 on $15.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Northern Trust Corporation (NTRS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22.
This company is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +25.8%. The consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level.
Northern Trust Corporation's revenues are expected to be $2.2 billion, up 10.1% from the year-ago quarter.
The State Street logo in this illustration taken April 24, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 16 (Reuters) - Custodian bank State Street (STT.N), opens new tab reported a rise in profit on Thursday, driven by a jump in fees earned from managing client assets.
Shares of the bank, which have gained nearly 45% in 2026 and outperformed the broader markets, were up 1.8% in trading before the bell.
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Here are more details from the earnings report:
The bank's assets under custody and administration jumped 18% to $57.86 trillion in the three months ended June 30 from a year earlier, driven by higher market levels, flows and net new business.
State Street reported investment management assets under management of $6.28 trillion, a growth of 23% over the year-ago period.
Its total fee revenue rose 17% to $3.19 billion in the quarter.
The bank's foreign exchange trading services revenue jumped nearly 26% to $494 million in the quarter, boosted by higher client volumes mostly in Asia-Pacific.
Its quarterly profit rose to $1.08 billion, or $3.65 per share, from $693 million, or $2.17 per share, a year earlier.
Reporting by Pritam Biswas in Bengaluru; Editing by Shreya Biswas
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Key Takeaways State Street's Q2 earnings is estimated at $3.30, up 30.4%, while sales are seen rising 11.5%.NII is projected to climb 14.4% to $833.8 million, supported by robust lending and stable funding costs.Total fee revenues are expected to rise 12.6%, led by management, servicing and securities finance fees. State Street (STT - Free Report) is slated to report second-quarter 2026 results on July 16, before market open. The company’s quarterly revenues and earnings are expected to have risen year over year.
In the first quarter of 2026, STT’s earnings outpaced the Zacks Consensus Estimate. Results were aided by growth in fee revenues and net interest income (NII). Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances. However, higher expenses and provisions were undermining factors.
State Street has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 6.97%, on average.
Major Q2 Factors & Estimates for State StreetNII: In the quarter, the Federal Reserve kept interest rates unchanged and signaled a hike later in the year. Further, a solid lending scenario (per the Fed’s latest data, overall loan growth was robust in the quarter) and stabilizing funding/deposit costs are expected to have offered the much-needed support to STT’s NII growth.
The Zacks Consensus Estimate for State Street’s average interest-earning assets is pegged at $294.8 billion, which implies a 3.2% decline from the prior-year quarter.
The consensus estimate for NII (on a fully taxable-equivalent basis) of $833.8 million indicates a 14.4% year-over-year rise.
Fee Revenues: Supported by solid inflows, the company’s AUM and AUC/A balances are expected to have increased in the to-be-reported quarter. Thus, management fees are likely to have benefited. The consensus estimate for management fees of $747.6 million implies a 33% year-over-year jump.
The consensus estimate for securities finance revenues of $133.9 million implies a 6.2% increase.
At the end of the first quarter, STT reported $315 million of servicing fee revenues to be installed. Hence, the metric is likely to have grown in the second quarter. The Zacks Consensus Estimate for servicing fees of $1.48 billion indicates a 13.1% improvement.
The Zacks Consensus Estimate for FX trading services income is pegged at $404.6 million, suggesting a 6.1% year-over-year decline. The consensus estimate for software services fees suggests a 22.8% decrease to $177.6 million.
Overall, the Zacks Consensus Estimate for total fee revenues of $3.06 billion indicates 12.6% year-over-year growth.
Expenses: Total expenses at State Street are expected to have increased in the second quarter, primarily due to higher information systems and communication costs, as well as spending on strategic acquisitions, expansion efforts and franchise investments.
While the company has been taking steps to enhance operating efficiency, ongoing investments in growth initiatives, infrastructure and technology are likely to have exerted upward pressure on costs in the to-be-reported quarter.
What the Zacks Model Unveils for State StreetPer our model, the likelihood of State Street beating the Zacks Consensus Estimate this time around is high. This is because the company has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for State Street is +0.35%.
Zacks Rank: STT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
State Street’s Q2 Earnings & Sales EstimatesThe Zacks Consensus Estimate for State Street’s earnings of $3.30 per share has been revised 2.8% higher over the past seven days. The figure suggests a 30.4% surge from the year-ago quarter.
The consensus estimate for quarterly sales of $3.85 billion indicates an 11.5% increase.
State Street’s Peers Worth a LookHere are STT’s peers that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Bank of New York Mellon Corporation (BNY - Free Report) is slated to report second-quarter 2026 results on July 15. The company has a Zacks Rank #2 at present and an Earnings ESP of +0.05%.
Quarterly earnings estimates for BNY have been moved north to $2.20 over the past week.
The Earnings ESP for Northern Trust (NTRS - Free Report) is +0.50% and it carries a Zacks Rank of 2 at present. The company is slated to report second-quarter 2026 results on July 22.
Over the past seven days, the Zacks Consensus Estimate for Northern Trust’s quarterly earnings has been revised upward to $2.68.
State Street Corporation (NYSE:STT) will release its second quarter earnings report before the opening bell on Thursday, July 16.
Analysts expect the Boston, Massachusetts-based company to report quarterly earnings of $3.31 per share, up from $2.53 per share in the year-ago period. The consensus estimate for State Street’s quarterly revenue is $3.87 billion. It reported $3.45 billion last year, according to Benzinga Pro.
On June 24, State Street increased its quarterly dividend from 84 cents to 92 cents per share.
Shares of State Street rose 1.6% to close at $180.16 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying STT stock? Here’s what analysts think:
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State Street plánuje ve 3. čtvrtletí 2026 zvýšit čtvrtletní dividendu o 10 % na 92 centů z 84 centů, pokud to schválí představenstvo. Oznámení přišlo po úspěšném stress testu.
Key Takeaways STT announces a 10% dividend hike plan in third-quarter 2026.STT's new dividend, if approved by the board, will be 92 cents, up from the current 84 cents.The company has $2.1B share repurchase authorization remaining available as of March 31, 2026. State Street Corp. (STT - Free Report) intends to increase its quarterly dividend by 10% from 84 cents per share to 92 cents in third-quarter 2026, subject to approval by its board of directors. The announcement came yesterday, following the bank’s successful completion of this year’s stress test.
Per the test results, State Street’s Stress Capital Buffer will remain at the 2.5% floor through Sept. 30, 2027, and thus, its common equity tier 1 ratio requirement is unchanged at 8%. This reinforces the financial strength and resiliency of the company under adverse circumstances.
After clearing last year’s stress test, State Street had increased its quarterly dividend 11%, before which, the company had hiked annual dividends four consecutive times by 10%. STT currently has a five-year annualized dividend growth of 9.43% and its payout ratio is 30% of earnings. This indicates that it retains sufficient earnings for reinvestment and future growth initiatives while delivering lucrative returns to its shareholders.
Apart from regular dividend payouts, State Street enhances shareholder value through share repurchases. In January 2024, the company was authorized to repurchase shares worth up to $5 billion (with no expiration date). As of March 31, 2026, $2.1 billion worth of authorization remained available.
The company maintains a decent liquidity position. As of March 31, 2026, STT’s long-term debt was $25.2 billion, and other short-term borrowings were $4 billion, while cash and due from banks plus interest-bearing deposits with banks totaled $130.1 billion. Given its robust capital and liquidity position, the company is expected to sustain efficient capital distribution activities, through which it will keep boosting investor confidence in the stock.
STT’s Price Performance & Zacks RankOver the past six months, shares of State Street have gained 27.7%, outperforming the industry’s 13.3% growth.
Image Source: Zacks Investment Research
Currently, STT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Capital Distribution Plans of Other BanksJPMorgan (JPM - Free Report) intends to increase its quarterly dividend 10% to $1.65 per share in the third quarter of this year. Also, JPM’s board of directors authorized a common share repurchase program worth $50 billion, effective July 1, 2026.
Likewise, Morgan Stanley (MS - Free Report) plans to increase its quarterly common stock dividend to $1.15 per share from the current $1. Also, Morgan Stanley’s board of directors reauthorized a multi-year share repurchase program of up to $20 billion, without an expiration date, beginning in the third quarter of 2026.
