Bank of New York Mellon (NYSE:BK) Reaches New 1-Year High on Better-Than-Expected Earnings

The Bank of New York Mellon Corporation (NYSE:BK)’s stock price reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $96.47 and last traded at $95.02, with a volume of 8705463 shares. The stock had previously closed at $95.25.

The bank reported $1.94 earnings per share for the quarter, beating the consensus estimate of $1.73 by $0.21. The firm had revenue of $4.77 billion for the quarter, compared to analyst estimates of $4.80 billion. Bank of New York Mellon had a return on equity of 13.46% and a net margin of 12.27%. Bank of New York Mellon’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.51 earnings per share.

Bank of New York Mellon Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 7th. Investors of record on Friday, July 25th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 2.16%. This is a positive change from Bank of New York Mellon’s previous quarterly dividend of $0.47. The ex-dividend date is Friday, July 25th. Bank of New York Mellon’s payout ratio is presently 30.62%.

Analyst Ratings Changes

BK has been the topic of several research reports. Keefe, Bruyette & Woods upped their target price on Bank of New York Mellon from $105.00 to $113.00 and gave the stock an “outperform” rating in a research report on Wednesday. Truist Financial upped their target price on Bank of New York Mellon from $97.00 to $100.00 and gave the stock a “hold” rating in a research report on Wednesday. Citigroup upped their target price on Bank of New York Mellon from $82.00 to $85.00 and gave the stock a “neutral” rating in a research report on Monday, March 24th. Wells Fargo & Company upped their target price on Bank of New York Mellon from $96.00 to $100.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Finally, Morgan Stanley upped their target price on Bank of New York Mellon from $95.00 to $101.00 and gave the stock an “overweight” rating in a research report on Wednesday. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $94.38.

Insiders Place Their Bets

In related news, EVP J Kevin Mccarthy sold 30,000 shares of the stock in a transaction that occurred on Tuesday, April 29th. The stock was sold at an average price of $79.03, for a total transaction of $2,370,900.00. Following the completion of the sale, the executive vice president owned 55,115 shares in the company, valued at $4,355,738.45. This represents a 35.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.14% of the company’s stock.

Institutional Trading of Bank of New York Mellon

Several hedge funds have recently added to or reduced their stakes in the business. Leonard Rickey Investment Advisors P.L.L.C. boosted its stake in Bank of New York Mellon by 2.2% during the 2nd quarter. Leonard Rickey Investment Advisors P.L.L.C. now owns 5,094 shares of the bank’s stock valued at $464,000 after purchasing an additional 112 shares during the period. Sax Wealth Advisors LLC lifted its position in shares of Bank of New York Mellon by 2.3% in the 1st quarter. Sax Wealth Advisors LLC now owns 5,278 shares of the bank’s stock worth $443,000 after acquiring an additional 117 shares during the period. Capital Analysts LLC lifted its position in shares of Bank of New York Mellon by 3.7% in the 4th quarter. Capital Analysts LLC now owns 3,317 shares of the bank’s stock worth $255,000 after acquiring an additional 119 shares during the period. Hemington Wealth Management lifted its position in shares of Bank of New York Mellon by 8.0% in the 1st quarter. Hemington Wealth Management now owns 1,628 shares of the bank’s stock worth $136,000 after acquiring an additional 121 shares during the period. Finally, Y.D. More Investments Ltd lifted its position in shares of Bank of New York Mellon by 13.8% in the 1st quarter. Y.D. More Investments Ltd now owns 1,030 shares of the bank’s stock worth $86,000 after acquiring an additional 125 shares during the period. Institutional investors own 85.31% of the company’s stock.

Bank of New York Mellon Price Performance

The stock has a 50-day simple moving average of $90.58 and a 200 day simple moving average of $85.07. The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.69 and a current ratio of 0.72. The company has a market cap of $70.08 billion, a P/E ratio of 14.95, a P/E/G ratio of 1.01 and a beta of 1.07.

Bank of New York Mellon Company Profile

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics.