Zacks Investment Research upgraded shares of Bank of New York Mellon (NYSE:BK) from a sell rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “Shares of BNY Mellon have outperformed the industry in the past year. Also, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth- quarter 2018 results were driven by rise in net interest income and lower costs. Higher interest rates, increase in fee income and solid assets balance will continue supporting the company’s profitability in the quarters ahead. Further, its enhanced capital deployment plan reflects a strong balance sheet position. However, elevated operating expenses are expected to continue hampering bottom-line growth to some extent. Also, the concentration risk, arising from significant dependence on fee-based income, remains a matter of concern.”
A number of other research analysts also recently weighed in on BK. Credit Suisse Group reduced their target price on Bank of New York Mellon from $58.00 to $54.00 and set a neutral rating on the stock in a report on Friday, December 7th. Citigroup cut Bank of New York Mellon from a buy rating to a neutral rating and dropped their price target for the stock from $55.00 to $52.00 in a research report on Wednesday, January 9th. Deutsche Bank dropped their price target on Bank of New York Mellon from $55.00 to $54.00 and set a buy rating on the stock in a research report on Friday, November 16th. Wolfe Research initiated coverage on Bank of New York Mellon in a research report on Tuesday, September 25th. They issued an underperform rating on the stock. Finally, Vining Sparks reissued a buy rating and issued a $62.00 price target on shares of Bank of New York Mellon in a research report on Tuesday, October 9th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and three have issued a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $55.78.
BK stock opened at $52.66 on Monday. Bank of New York Mellon has a fifty-two week low of $43.67 and a fifty-two week high of $58.67. The company has a current ratio of 0.70, a quick ratio of 0.69 and a debt-to-equity ratio of 0.87. The company has a market cap of $52.07 billion, a price-to-earnings ratio of 12.51, a PEG ratio of 1.49 and a beta of 1.02.
Bank of New York Mellon (NYSE:BK) last posted its earnings results on Wednesday, January 16th. The bank reported $0.99 earnings per share for the quarter, topping analysts’ consensus estimates of $0.92 by $0.07. Bank of New York Mellon had a return on equity of 11.53% and a net margin of 22.19%. The firm had revenue of $4.01 billion for the quarter, compared to the consensus estimate of $4.02 billion. During the same quarter in the prior year, the business earned $0.91 EPS. The business’s revenue for the quarter was up 7.5% on a year-over-year basis. On average, analysts expect that Bank of New York Mellon will post 4.27 EPS for the current year.
Bank of New York Mellon announced that its Board of Directors has approved a share repurchase program on Monday, December 10th that authorizes the company to repurchase $830.00 million in outstanding shares. This repurchase authorization authorizes the bank to purchase up to 1.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.
The business also recently declared a quarterly dividend, which will be paid on Friday, February 8th. Stockholders of record on Monday, January 28th will be given a $0.28 dividend. The ex-dividend date is Friday, January 25th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.13%. Bank of New York Mellon’s dividend payout ratio is currently 26.60%.
Several institutional investors and hedge funds have recently modified their holdings of the company. City Holding Co. lifted its position in Bank of New York Mellon by 2.4% in the 4th quarter. City Holding Co. now owns 49,701 shares of the bank’s stock valued at $2,339,000 after acquiring an additional 1,175 shares in the last quarter. PFG Advisors bought a new position in Bank of New York Mellon in the 4th quarter valued at approximately $443,000. Stewart & Patten Co. LLC lifted its position in Bank of New York Mellon by 3.7% in the 4th quarter. Stewart & Patten Co. LLC now owns 261,732 shares of the bank’s stock valued at $12,320,000 after acquiring an additional 9,418 shares in the last quarter. Quadrant Capital Group LLC lifted its position in Bank of New York Mellon by 6.2% in the 4th quarter. Quadrant Capital Group LLC now owns 3,792 shares of the bank’s stock valued at $168,000 after acquiring an additional 223 shares in the last quarter. Finally, Butensky & Cohen Financial Security Inc. bought a new position in Bank of New York Mellon in the 4th quarter valued at approximately $1,266,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.
Bank of New York Mellon Company Profile
The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. It offers investment management, custody, foreign exchange, fund broker-dealer, collateral and liquidity, clearing, corporate trust, global payment, trade finance, and cash management services, as well as securities finance and depositary receipts.
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