Section 1: Company Overview and Fundamentals Insights

Company Overview: State Street Corporation (STT) is a financial services and bank holding company headquartered in Boston, United States. It operates through its subsidiary, State Street Bank and Trust Company and provides a range of financial products, including investment services, investment management, mutual funds, collective investment funds to institutional investors.

Kalkine’s Diversified Opportunities Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~43.06% of the total shareholding. The Vanguard Group, Inc. and Dodge & Cox hold maximum stakes in the company at ~12.63% and ~6.82%, respectively.

1.4 Key Metrics: STT's Pretax Return on Equity increased to 3.70% in Q2FY23 vs. 3.20% in Q2FY22. Below is captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 Q2FY23 Results Highlights (for the 3 months ended 30 June 2023): Below mentioned are some key financial highlights:   

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock has declined ~5.47% in last 1 month, whereas over the last 1-year, it has risen by ~2.64%. The stock has a 52-week low and 52-week high of USD 58.615 and USD 94.735, respectively and is currently trading below the average of 52-week high and low.

4.2 Fundamental Valuation

Valuation Methodology: P/BV Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 6 September 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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