Orin
STTNYSE·Asset Management

State Street Corporation STT

Market cap $49.8BP/E 15.7× trailingGross margin 65.3%Reports Wed 14 Oct, before the open
$179.76
−1.33 (−0.73%)live 11:20 ET
52-wk $104.64 – $195.93
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Orin's take
0.68conviction · moderate
Refreshed 17 Aug · take v7. A new filing or a print queues the next refresh.

State Street's FY2025 fundamentals are genuinely improving — diluted EPS reached $9.40 (up 14.5% YoY), total debt was cut by $7B to $29.8B, and free cash flow rebounded to $4.3B from -$14.1B in FY2024 — but revenue growth decelerated sharply to 3.0% from 19.6% the prior year, and the stock at $193.04 now trades 34% above its 200-day MA ($143.84) with an RSI of 68.9, while DCF analyses peg intrinsic value at roughly $157. Persistent insider selling — the CEO, CRO, and an EVP all sold shares in July 2026 at ~$184 — and a 38% EV/EBITDA premium to the peer median (15.5x vs 11.2x) leave no margin of safety despite the operational progress and the Santander CACEIS Latam acquisition expanding the franchise.

What could go wrong

  • Valuation stretch. EV/EBITDA of 15.5x sits 38% above the peer median of 11.2x, and DCF analyses published in August 2026 estimate intrinsic value at $157 versus a $193 close, suggesting ~19% downside to fair value.
  • Insider selling. Over the trailing 24 months, insiders net sold $54.6M in value across 86 dispositions versus 55 acquisitions; the CEO, CRO, and an EVP all sold in July 2026 at ~$184 per share.
  • Decelerating growth. FY2025 revenue growth slowed to 3.0% YoY from 19.6% in FY2024, and net income growth moderated to 9.6% from 38.2%, raising questions about whether the re-rating is justified by fundamentals.
  • Technical overextension. RSI-14 at 68.9 and price 34% above the 200-day MA ($143.84) as of 2026-08-17 indicate overbought conditions that historically precede mean reversion.

What would change my mind

Q3 2026 earnings beat with fee growth. Q3 2026 results (scheduled October 14, 2026) show accelerating fee revenue and positive net new AUC/AUM flows from the Santander CACEIS Latam acquisitionbullish
Insider buying reversal. One or more senior executives acquire shares on the open market rather than via option exercises or 10b5-1 plansbullish
Price breakdown below 50-day MA. Stock closes below the 50-day MA at ~$178, signaling loss of momentum after the extended runbearish
Smart money outflows. Q3 2026 13F composite (available ~November 14) shows smart money score turning negative with declining fund count from the current 65bearish

Where this comes from: FMP annual fundamentals + derived_metrics, FY2025 · FMP annual fundamentals, FY2025 vs FY2024 · FMP annual fundamentals, FY2025 vs FY2024 · derived_metrics, FY2025 and FY2024. Orin's read on STT; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$3.0B0.1% of fund
Vanguard Portfolio Management$2.5B0.1% of fund
Fmr$2.4B0.1% of fund
State Street$2.3B0.1% of fund
Geode Capital Management$1.3B0.1% of fund
Invesco$1.1B0.1% of fund

95 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 149 Form 4 filings, net −$55.1M. Of the 50 on hand, 1 was an open-market purchase and 13 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Financial Services
MetricNowOwn medianSector
P/E15.7×12.2×21.6×
EV/EBITDA14.8×——
P/S2.18×1.62×—
P/B1.8×1.2×—

Its P/E sits above all 5 of the last 5 years (+3.99σ from its own mean).

What the price assumes

0.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $4.3B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

37 firms · 2026-09-24
Consensus target

$182

$155 – $200 · +1% against today's price

How they rate it
  • 18 buy or overweight
  • 15 hold
  • 4 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 16.2× of 7 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
STTState Street Corporation$50B15.7×14.8×65.3%15.0%12%
AMPAmeriprise Financial, Inc.$44B11.5×7.3×50.2%19.9%62%
BENFranklin Resources, Inc.$17B21.7×17.7×67.6%9.6%7%
BLKBlackRock, Inc.$166B25.3×16.0×55.7%24.1%12%
BXBlackstone Inc.$142B26.0×18.2×88.8%21.9%41%
IVZInvesco Ltd.$14B—9.6×67.4%-0.9%-1%
NTRSNorthern Trust Corporation$32B14.9×—59.8%14.8%17%
PFGPrincipal Financial Group, Inc.$24B16.2×12.4×48.5%9.9%13%
TROWT. Rowe Price Group, Inc.$22B10.4×6.9×70.7%29.3%20%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 3.1% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 16.5×FY25 13.5×

What its sector has traded at

Financial Services
FY14 29.6×FY26 23.8×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$554$160.84 · +245%2026-06-10
Levered DCF$298$160.84 · +85%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $179.76
52-week range$105 – $196
Analyst targets$155 – $200
Standard DCF$554 as of 2026-06-10, when it was $160.84
Levered DCF$298 as of 2026-06-10, when it was $160.84
At own 5y-median P/E (12×)$140
At 5y P/E range (10–13×)$118 – $148
At sector P/E (22×)$249

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.