State Street Corporation (STT) shares ended the last trading session 8.2% higher at $80.45. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 2.4% loss over the past four weeks.
Following the termination of its deal to acquire Brown Brothers Harriman & Co.’s Investor Services business, State Street announced additional $500 million worth of share repurchase authorization for the fourth quarter 2022. This brings the total buyback program for the fourth quarter to $1.5 billion.
Also, Ron O’Hanley, the chairman and CEO of STT, noted “We recognize the priority our shareholders place on capital return, and we continue to expect to use dividends and share repurchases to return significantly more capital than our medium term target payout of 80% of earnings in 2023.”
This development cheered the investors and drove the State Street stock.
This company is expected to post quarterly earnings of $1.84 per share in its upcoming report, which represents a year-over-year change of -8%. Revenues are expected to be $3 billion, down 1.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For State Street Corporation, the consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on STT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
State Street Corporation is part of the Zacks Banks – Major Regional industry. M&T Bank Corporation (MTB), another stock in the same industry, closed the last trading session 7.7% lower at $147.97. MTB has returned -5.9% in the past month.
For M&T Bank Corporation
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