State Street Corporation (STT)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
State Street Corporation (STT) trades at $170.69 with AI Score 34/100 (Grade D). State Street Corporation is a leading provider of financial services and investment management solutions to institutional investors globally. Market cap: $47.24B, Sector: Financial services.
Price live · AI analysis from May 10, 2026STT stock analysis for 2026: Analysts have set a consensus price target of $150.33 for State Street Corporation, suggesting 11.9% downside from the current price of $170.69. The AI MoonshotScore is 34/100, indicating a bearish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
STT: 1/1 perspectives are bearish.
How is this calculated? →State Street Corporation (STT) Financial Services Profile
State Street Corporation, founded in 1792, provides financial products and services to institutional investors worldwide, including investment servicing, data/analytics, and investment management. With $47.24B market cap and a 13.5% profit margin, State Street competes with BLK and BK, offering solutions like ETFs under the SPDR brand.
What Is the Investment Thesis for STT?
State Street Corporation presents a compelling investment case based on its established market position, diverse service offerings, and consistent profitability. With a market capitalization of $47.24B and a P/E ratio of 15.5, the company demonstrates financial stability. A gross margin of 63.3% and a profit margin of 13.5% highlight efficient operations. Growth catalysts include expanding its SPDR ETF offerings and leveraging its data and analytics capabilities to enhance client services. The company's dividend yield of 2.19% provides an additional incentive for investors. Potential risks include increased competition from firms like BLK and BK, as well as regulatory changes impacting the financial services industry. The company's beta of 1.38 suggests higher volatility compared to the market.
Based on FMP financials and quantitative analysis
STT Key Highlights
- Market Cap of $47.24B indicates substantial market capitalization and investor confidence.
- P/E Ratio of 15.5 suggests the company is reasonably valued compared to its earnings.
- Profit Margin of 13.5% demonstrates efficient operations and profitability.
- Gross Margin of 63.3% highlights the company's ability to manage costs effectively.
- Dividend Yield of 2.19% provides an attractive income stream for investors.
Who Are STT's Competitors?
STT is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BLK BlackRock, Inc. | $995.73 | +1.57% | $154.33B | 46 |
| BX Blackstone Inc. | $122.73 | +2.66% | $147.43B | 60 |
| BK The Bank of New York Mellon Corporation | $141.91 | -0.48% | $97.40B | 51 |
| AMP Ameriprise Financial, Inc. | $489.16 | +1.98% | $43.97B | 53 |
| NTRS Northern Trust Corporation | $176.50 | +0.51% | $32.66B | 47 |
| NXDT NexPoint Diversified Real Estate Trust | $5.36 | +1.32% | $277.24M | 73 |
| GENB Generate Biomedicines, Inc. | $17.41 | +5.52% | $2.23B | 72 |
| SII Sprott Inc. | $114.98 | +2.00% | $2.96B | 71 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are STT's Key Strengths?
- Strong brand reputation and long history.
- Comprehensive range of financial products and services.
- Global presence and extensive client network.
- Significant assets under custody and administration.
What Are STT's Weaknesses?
- Exposure to market volatility and economic downturns.
- Dependence on institutional investor activity.
- Potential for regulatory scrutiny and compliance costs.
- Competition from larger and more diversified financial institutions.
What Could Drive STT Stock Higher?
- Expansion of SPDR ETF offerings to capture growing ETF market share.
- Leveraging data and analytics capabilities to enhance client services and attract new clients.
- Strategic acquisitions and partnerships to expand service offerings and geographic reach.
- Focus on ESG investing to attract socially responsible investors.
- Enhancing digital capabilities to improve client experience and streamline operations.
What Are the Key Risks for STT?
- Financial-distress signal — its Altman Z-Score of -0.03 sits in the distress zone (elevated bankruptcy risk).
- Insider selling — insiders were net sellers of roughly $4.8M recently.
- Increased competition from fintech companies and alternative asset managers.
- Changes in regulatory landscape and capital requirements.
- Economic recession or market correction impacting assets under management.
- Cybersecurity risks and data breaches.
- Market volatility impacting investment performance.
What Are the Growth Opportunities for STT?
- Expansion of SPDR ETF Offerings: State Street can capitalize on the growing demand for ETFs by expanding its SPDR ETF offerings. The global ETF market is projected to reach trillions of dollars by 2030. By introducing new ETFs focused on specific sectors, themes, and investment strategies, State Street can attract new investors and increase its assets under management. This expansion should be ongoing.
- Leveraging Data and Analytics Capabilities: State Street can leverage its data and analytics capabilities to provide enhanced services to its clients. The demand for sophisticated analytics is increasing as institutional investors seek to improve their investment decision-making. By offering advanced analytics tools and insights, State Street can differentiate itself from competitors and attract new clients. This is an ongoing opportunity.
- Strategic Acquisitions and Partnerships: State Street can pursue strategic acquisitions and partnerships to expand its service offerings and geographic reach. The financial services industry is consolidating, and strategic acquisitions can provide access to new markets and technologies. By partnering with fintech companies, State Street can enhance its digital capabilities and improve the client experience. This is an ongoing opportunity.
- Focus on ESG Investing: State Street can capitalize on the growing interest in ESG investing by developing and promoting ESG-focused investment products and services. The demand for ESG investments is increasing as investors seek to align their investments with their values. By offering ESG-integrated investment strategies and providing ESG data and analytics, State Street can attract socially responsible investors. This is an ongoing opportunity.
- Enhancing Digital Capabilities: State Street can enhance its digital capabilities to improve the client experience and streamline its operations. The financial services industry is undergoing a digital transformation, and companies that embrace technology will be better positioned to succeed. By investing in digital platforms, mobile apps, and automation, State Street can improve efficiency and provide a more seamless experience for its clients. This is an ongoing opportunity.
What Opportunities Does STT Have?
- Expansion into new markets and client segments.
- Development of innovative investment products and services.
- Leveraging technology to improve efficiency and client experience.
- Capitalizing on the growing demand for ESG investing.
What Threats Does STT Face?
- Increased competition from fintech companies and alternative asset managers.
- Changes in regulatory landscape and capital requirements.
- Economic recession or market correction.
- Cybersecurity risks and data breaches.
What Are STT's Competitive Advantages?
- Established Brand Reputation: State Street has a long-standing reputation as a trusted provider of financial services to institutional investors.
- Scale and Global Reach: The company has a significant scale and global reach, allowing it to serve clients worldwide.
- Comprehensive Service Offerings: State Street offers a comprehensive suite of financial products and services, providing a one-stop shop for institutional investors.
- Technological Infrastructure: State Street has invested heavily in its technological infrastructure, providing a competitive advantage in delivering efficient and reliable services.
What Does STT Do?
State Street Corporation, established in 1792, has evolved into a prominent financial services and investment management company catering to institutional investors globally. Founded in Boston, Massachusetts, the company initially focused on banking and has since expanded its offerings to encompass a wide array of financial solutions. State Street's core business revolves around providing investment servicing products and services, including custody, product accounting, daily pricing and administration, master trust and master custody, depotbank services, record-keeping, and cash management. Furthermore, the company offers foreign exchange, brokerage, and other trading services, securities finance, and enhanced custody products. State Street also provides deposit and short-term investment facilities, loans and lease financing, investment manager and alternative investment manager operations outsourcing, performance, risk, and compliance analytics, and financial data management. The company's investment management segment delivers strategies and products such as core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, and alternative investment strategies. State Street's services extend to environmental, social, and governance (ESG) investing, defined benefit and defined contribution plans, and global fiduciary solutions, including exchange-traded funds (ETFs) under the SPDR ETF brand. State Street serves a diverse clientele, including mutual funds, collective investment funds, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers.
What Products and Services Does STT Offer?
- Provides custody services for institutional investors.
- Offers product accounting and administration services.
- Manages master trust and master custody accounts.
- Provides foreign exchange, brokerage, and trading services.
- Offers securities finance and enhanced custody products.
- Manages deposit and short-term investment facilities.
- Provides investment management strategies and products.
- Offers environmental, social, and governance (ESG) investing solutions.
How Does STT Make Money?
- Generates revenue from fees charged for investment servicing products and services.
- Earns revenue from investment management fees based on assets under management.
- Derives revenue from trading and post-trade settlement services.
- Generates revenue from securities finance activities.
What Industry Does STT Operate In?
State Street Corporation operates within the asset management industry, which is characterized by increasing demand for diverse investment solutions and sophisticated data analytics. The industry is highly competitive, with key players including BLK, BX, BK, AMP, and NTRS. Market trends include the growing popularity of ETFs, the integration of ESG factors into investment strategies, and the increasing importance of technology in delivering investment services. State Street's focus on providing comprehensive financial products and services positions it to capitalize on these trends.
Who Are STT's Key Customers?
- Mutual funds and collective investment funds.
- Corporate and public retirement plans.
- Insurance companies.
- Foundations and endowments.
- Investment managers.
Net sellingInsider Activity
Over the past six months, State Street Corporation insiders filed 15 SEC Form 4 transactions — 4 sales and 11 purchases. On net that is roughly 13K shares disposed (about $4.8M), a signal worth weighing alongside the fundamentals.
STT Valuation & Market Position
With a $47.24B market cap, State Street Corporation sits in the large-cap segment of the market. Relative to its peer group, STT's quantitative score of 34/100 is below the peer average of 51/100.
ROE 11%Key Financial Metrics
Return on equity for State Street Corporation stands at 11.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.8%, showing how much profit it generates from its asset base. STT trades at a trailing price-to-earnings ratio of 15.51, below the Financial Services sector average of ~18x. Its free cash flow yield is -25.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.66 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 6.4%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
State Street Corporation's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.03 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project State Street Corporation revenue of about $15.44B for fiscal 2026, with EPS near $12.76. The estimate reflects 9 contributing analysts.
Company Profile
State Street Corporation operates in the Asset Management industry within the Financial Services sector. It is headquartered in Boston, US. The company is led by CEO Ronald Philip O'Hanley. STT has traded publicly since 1980.
STT Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in State Street's future performance, indicating that executives believe in the company's growth potential.
- Community sentiment has shifted positively, with discussions highlighting State Street's strong position in the asset management sector and its ability to navigate market volatility.
- Analysts have noted the company's robust client relationships, which are crucial for sustaining revenue streams and attracting new business.
- The overall market perception is improving, with many investors viewing State Street as a stable player in the financial services industry.
Bear Case
- Some analysts express concerns about potential regulatory challenges that could impact State Street's operations and profitability.
- Community sentiment has also reflected worries about the broader economic environment, which might affect asset management firms like State Street.
- Recent discussions indicate skepticism about the company's ability to adapt to rapidly changing technology in financial services, raising concerns about future competitiveness.
- There are fears that increasing competition from fintech companies could erode State Street's market share, leading to potential revenue pressures.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
From the Earnings Call
“Against this backdrop, we now expect fee revenue growth in the 7% to 9% range, an increase from our previous outlook of 4% to 6%, reflecting a stronger-than-expected Q1 along with continued organic growth and solid momentum across the franchise.”
— John Woods, CFO
“First-quarter net interest income of $835 million increased 17% year-over-year, primarily reflecting a 16 basis point expansion in net interest margin to 116 basis points, and average interest-earning asset growth of 1%.”
— John Woods, CFO
STT Q1 FY2026 earnings call transcript · 2026-04-17
STT Latest News
-
Fidelity Health Care vs. State Street Biotech: Which ETF Fits Your Portfolio Best?
fool.com · Jul 5, 2026
-
Which Banking ETF Is Better, State Street's KBE or iShares' U.S. Regional Bank-Focused IAT?
fool.com · Jul 4, 2026
-
Vanguard VT vs State Street SPDW Global ETF Showdown. Which World-Spanning Fund Is the Better Buy?
Yahoo! Finance: STT News · Jul 4, 2026
-
State Street (STT) Lands Treasury Default ETF Role And Launches Stablecoin Fund
Yahoo! Finance: STT News · Jul 3, 2026
STT Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for STT.
Price Targets
Consensus target: $150.33
STT MoonshotScore
What does this score mean?
The MoonshotScore rates STT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Fidelity Health Care vs. State Street Biotech: Which ETF Fits Your Portfolio Best?
Which Banking ETF Is Better, State Street's KBE or iShares' U.S. Regional Bank-Focused IAT?
Vanguard VT vs State Street SPDW Global ETF Showdown. Which World-Spanning Fund Is the Better Buy?
State Street (STT) Lands Treasury Default ETF Role And Launches Stablecoin Fund
Latest State Street Corporation Analysis
Tech-Driven Momentum Propels Nasdaq 100 Up 2.25%, S&P 500 Adds 1.18%
3 min readState Street (STT) Rises 1.23% to $170.18 Following Morgan Stanley Price Target Hike to $183
3 min readNasdaq 100 Jumps 2.25% as Analyst Optimism Lifts BioCryst Pharma (BCRX) to $29 Target
3 min readMorgan Stanley's Bullish Call on State Street Drives Shares Up 1.29% as S&P 500 Dips 0.05%
3 min readMicron Plunges 9.92% Amid Broader Market Concerns
2 min readLeadership: Ronald Philip O'Hanley
Chairman and Chief Executive Officer
Ronald Philip O'Hanley serves as the Chairman and Chief Executive Officer of State Street Corporation. Prior to assuming his current role, O'Hanley held various leadership positions within the company, including President and Chief Operating Officer. His career spans several decades in the financial services industry, with experience in asset management, investment banking, and wealth management. He holds an MBA from Harvard Business School and a bachelor's degree from Bowdoin College.
Track Record: Since becoming CEO, O'Hanley has focused on driving innovation, enhancing client service, and improving operational efficiency. He has overseen the expansion of State Street's digital capabilities and the development of new investment solutions. He has also emphasized the importance of ESG investing and has positioned State Street as a leader in this area. O'Hanley's leadership has contributed to State Street's continued growth and profitability.
What Investors Ask About State Street Corporation (STT) — Financial Services
What does State Street Corporation do?
State Street Corporation is a leading provider of financial services and investment management solutions to institutional investors worldwide. The company offers a comprehensive suite of services, including investment servicing, investment management, and data and analytics. Its investment servicing offerings include custody, product accounting, and administration. The company's investment management segment delivers strategies and products such as core and enhanced indexing, multi-asset strategies, and alternative investment strategies. State Street's clients include mutual funds, collective investment funds, corporate and public retirement plans, insurance companies, foundations, and endowments.
What do analysts say about STT stock?
Analyst consensus on State Street Corporation (STT) is generally neutral, reflecting the company's established market position and consistent financial performance. Key valuation metrics, such as the P/E ratio of 15.5, suggest the company is reasonably valued compared to its earnings. Growth considerations include the expansion of its SPDR ETF offerings and the leveraging of its data and analytics capabilities. Analysts also note potential risks, such as increased competition and regulatory changes. However, analyst ratings and price targets vary, reflecting differing perspectives on the company's future prospects. This is not investment advice, and investors should conduct their own research.
What are the main risks for STT?
State Street Corporation faces several key risks, including increased competition from fintech companies and alternative asset managers, which could erode its market share. Changes in the regulatory landscape and capital requirements could increase compliance costs and impact profitability. An economic recession or market correction could reduce assets under management and negatively affect revenue. Cybersecurity risks and data breaches pose a significant threat to the company's reputation and financial stability. Market volatility could also impact investment performance and client satisfaction. These risks could adversely affect State Street's financial performance and strategic objectives.
What is State Street Corporation's credit quality and risk management approach?
State Street Corporation maintains a strong credit profile, reflecting its robust balance sheet and diversified revenue streams. The company's risk management approach focuses on identifying, assessing, and mitigating various risks, including credit risk, market risk, and operational risk. State Street employs a comprehensive risk management framework that includes policies, procedures, and controls designed to minimize potential losses. The company's credit quality is supported by its conservative investment policies and its focus on high-quality assets. State Street's risk management practices are regularly reviewed and updated to ensure their effectiveness.
What regulatory challenges does State Street Corporation face?
State Street Corporation operates in a highly regulated environment and faces numerous regulatory challenges. These challenges include compliance with capital requirements, anti-money laundering regulations, and securities laws. Changes in regulations, such as those related to capital adequacy and risk management, could increase compliance costs and impact the company's profitability. State Street must also navigate complex international regulations, given its global operations. The company invests significant resources in compliance and regulatory affairs to ensure it meets its obligations and maintains its licenses to operate.
What are the key factors to evaluate for STT?
State Street Corporation (STT) holds an AI score of 34/100 (low). P/E: 15.5x vs the S&P 500's ~20-25x. Analysts target $150.33 (-12%). Not financial advice.
How frequently does STT data refresh on this page?
STT prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven STT's recent stock price performance?
State Street Corporation (STT) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand reputation and long history. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data as of 2026-05-10.
- Financial data is based on the most recent filings and may be subject to change.