Vice Chairman and CFO Eric Aboaf Sells 10,000 Shares of State Street Corporation
On November 1, 2023, Eric Aboaf, Vice Chairman and CFO of State Street Corporation (NYSE:STT), sold 10,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 33,785 shares over the past year and made no purchases.
Eric Aboaf is a seasoned financial executive with a wealth of experience in the banking industry. He has been with State Street Corporation since 2015, serving in various roles before assuming his current position as Vice Chairman and CFO. His responsibilities include overseeing the company's financial operations and strategy.
State Street Corporation is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With $38.8 trillion in assets under custody and/or administration and $3.5 trillion in assets under management as of December 31, 2022, State Street operates globally in more than 100 geographic markets.
The insider's recent sell has raised some eyebrows, especially considering the lack of insider buys over the past year. The insider transaction history for State Street Corporation shows zero insider buys and eight insider sells over the past year.
The relationship between insider sell/buy actions and the stock price is often scrutinized by investors. In this case, the insider's sell action coincides with a period when the stock is considered modestly undervalued based on its GF Value. On the day of the insider's recent sell, shares of State Street Corporation were trading for $64.94, giving the stock a market cap of $20.91 billion.
The price-earnings ratio of the stock is 9.89, lower than both the industry median of 12.55 and the companys historical median price-earnings ratio. This suggests that the stock is undervalued compared to its peers and its own historical standards.
Furthermore, with a price of $64.94 and a GuruFocus Value of $85.18, State Street Corporation has a price-to-GF-Value ratio of 0.76. This indicates that the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell action, coupled with the stock's current undervalued status, may signal a cautious outlook for State Street Corporation. However, investors should also consider other factors such as the company's financial health, market conditions, and industry trends before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
