The Bank of New York Mellon (NYSE:BK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday. The brokerage presently has a $64.00 price target on the bank’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.73% from the company’s current price.
According to Zacks, “BNY Mellon's shares have outperformed the industry in the last three months. Also, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Its first-quarter 2018 results reflect higher revenues and strong assets under management (AUM) growth. Higher interest rates, rising loan demand and steadily improving fee income are expected to aid revenue growth. While concentration risk arising from significant dependence on fee-based income remains a matter of concern, potential lesser regulations, lower tax rates and cost-saving initiatives are likely to drive profitability. Also, the company’s enhanced capital deployment activities indicate strong balance sheet position.”
BK has been the topic of several other research reports. Morgan Stanley raised The Bank of New York Mellon from an “equal weight” rating to an “overweight” rating and set a $60.00 target price on the stock in a report on Friday, January 19th. ValuEngine lowered The Bank of New York Mellon from a “buy” rating to a “hold” rating in a report on Wednesday, May 2nd. Goldman Sachs lowered The Bank of New York Mellon from a “buy” rating to a “neutral” rating in a report on Monday, March 12th. They noted that the move was a valuation call. Deutsche Bank lowered their target price on The Bank of New York Mellon from $64.00 to $60.00 and set a “buy” rating on the stock in a report on Friday, April 6th. Finally, Keefe, Bruyette & Woods set a $57.00 target price on The Bank of New York Mellon and gave the company a “hold” rating in a report on Thursday, March 8th. One investment analyst has rated the stock with a sell rating, twelve have issued a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $58.26.
The Bank of New York Mellon (NYSE:BK) last announced its quarterly earnings data on Thursday, April 19th. The bank reported $1.10 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.96 by $0.14. The firm had revenue of $4.18 billion for the quarter, compared to analyst estimates of $4.04 billion. The Bank of New York Mellon had a return on equity of 11.27% and a net margin of 25.20%. The Bank of New York Mellon’s quarterly revenue was up 8.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.83 earnings per share. equities analysts predict that The Bank of New York Mellon will post 4.19 EPS for the current fiscal year.
In related news, insider Kurtis R. Kurimsky sold 4,701 shares of the stock in a transaction dated Friday, May 11th. The stock was sold at an average price of $57.44, for a total transaction of $270,025.44. Following the transaction, the insider now directly owns 16,487 shares in the company, valued at $947,013.28. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Bridget E. Engle sold 38,928 shares of the stock in a transaction dated Thursday, February 22nd. The stock was sold at an average price of $56.62, for a total value of $2,204,103.36. Following the transaction, the insider now owns 68,046 shares in the company, valued at $3,852,764.52. The disclosure for this sale can be found here. Insiders sold 106,629 shares of company stock worth $6,000,479 over the last 90 days. Company insiders own 1.76% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. lifted its position in The Bank of New York Mellon by 1.4% during the fourth quarter. BlackRock Inc. now owns 58,687,093 shares of the bank’s stock worth $3,160,885,000 after buying an additional 808,949 shares during the period. Longview Partners Guernsey LTD raised its holdings in shares of The Bank of New York Mellon by 1.7% in the 4th quarter. Longview Partners Guernsey LTD now owns 17,675,284 shares of the bank’s stock worth $951,991,000 after purchasing an additional 293,300 shares during the period. Trian Fund Management L.P. raised its holdings in shares of The Bank of New York Mellon by 2.3% in the 1st quarter. Trian Fund Management L.P. now owns 16,136,596 shares of the bank’s stock worth $831,519,000 after purchasing an additional 360,164 shares during the period. Artisan Partners Limited Partnership raised its holdings in shares of The Bank of New York Mellon by 1.0% in the 1st quarter. Artisan Partners Limited Partnership now owns 13,605,620 shares of the bank’s stock worth $701,098,000 after purchasing an additional 134,673 shares during the period. Finally, Geode Capital Management LLC raised its holdings in shares of The Bank of New York Mellon by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 10,680,589 shares of the bank’s stock worth $574,033,000 after purchasing an additional 161,352 shares during the period. Hedge funds and other institutional investors own 84.05% of the company’s stock.
The 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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