STT Should I Buy
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State Street Corp (STT) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock shows mixed signals with limited positive catalysts, cautious sentiment from Congress trading data, and a lack of strong proprietary trading signals. While the company has some positive financial metrics, the recent price decline and analyst downgrades suggest a cautious approach.
The stock's MACD is negatively expanding (-0.253), indicating bearish momentum. RSI is neutral at 33.346, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near its support level (S1: 125.007, S2: 122.06), suggesting limited downside but no strong upward momentum.
Bullish moving averages indicate potential upward momentum in the long term.
Gross margin increased significantly YoY (+11.66%), showing operational efficiency improvements.
Congress members have sold $3M-$10M worth of STT stock in the last 90 days, indicating cautious sentiment.
Analysts have downgraded the stock or maintained neutral ratings, citing valuation concerns and headwinds.
Recent financial performance shows a drop in net income (-5.49% YoY) and EPS (-1.63% YoY), which may weigh on investor confidence.
In Q4 2025, revenue increased by 1.92% YoY to $5.36B, but net income dropped by 5.49% YoY to $688M. EPS also declined by 1.63% YoY to 2.42. Gross margin improved significantly to 63.66%, up 11.66% YoY, reflecting operational efficiency gains.
Analyst ratings are mixed. JPMorgan raised the price target to $137.50 but maintained a Neutral rating. Morgan Stanley and Truist lowered price targets while maintaining Overweight and Hold ratings, respectively. TD Cowen and Goldman Sachs are more optimistic, raising price targets to $155 and $144 with Buy ratings. However, Barclays downgraded the stock to Equal Weight, citing valuation concerns.
