Bank of New York Mellon (NYSE:BK) Posts Earnings Results, Beats Estimates By $0.07 EPS

Bank of New York Mellon (NYSE:BK) posted its quarterly earnings data on Wednesday. The bank reported $1.01 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.94 by $0.07, RTT News reports. The firm had revenue of $3.92 billion during the quarter, compared to analysts’ expectations of $3.92 billion. Bank of New York Mellon had a net margin of 19.93% and a return on equity of 10.74%. The firm’s quarterly revenue was down 5.2% on a year-over-year basis. During the same quarter last year, the company posted $1.03 EPS.

Shares of BK stock opened at $45.27 on Friday. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.71 and a quick ratio of 0.68. Bank of New York Mellon has a 52 week low of $42.13 and a 52 week high of $54.47. The stock has a market cap of $43.35 billion, a PE ratio of 10.75, a PEG ratio of 1.38 and a beta of 1.04. The firm has a 50 day simple moving average of $43.86.

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 9th. Shareholders of record on Monday, July 29th will be given a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 2.74%. The ex-dividend date of this dividend is Friday, July 26th. This is a boost from Bank of New York Mellon’s previous quarterly dividend of $0.28. Bank of New York Mellon’s dividend payout ratio (DPR) is currently 26.60%.

In other Bank of New York Mellon news, Director Trian Fund Management, L.P. sold 621,807 shares of the firm’s stock in a transaction that occurred on Friday, May 3rd. The shares were sold at an average price of $50.11, for a total value of $31,158,748.77. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP J Kevin Mccarthy sold 25,000 shares of Bank of New York Mellon stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $49.43, for a total transaction of $1,235,750.00. Following the transaction, the executive vice president now owns 93,418 shares of the company’s stock, valued at approximately $4,617,651.74. The disclosure for this sale can be found here. Company insiders own 1.71% of the company’s stock.

Several large investors have recently bought and sold shares of BK. FMR LLC raised its position in shares of Bank of New York Mellon by 36.4% in the fourth quarter. FMR LLC now owns 32,610,453 shares of the bank’s stock valued at $1,534,974,000 after buying an additional 8,695,718 shares during the last quarter. Norges Bank acquired a new position in shares of Bank of New York Mellon in the fourth quarter valued at approximately $390,153,000. Ronna Sue Cohen raised its position in shares of Bank of New York Mellon by 4,919.9% in the first quarter. Ronna Sue Cohen now owns 2,207,487 shares of the bank’s stock valued at $2,207,000 after buying an additional 2,163,512 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Bank of New York Mellon by 6.5% in the fourth quarter. Geode Capital Management LLC now owns 10,721,814 shares of the bank’s stock valued at $503,675,000 after buying an additional 655,356 shares during the last quarter. Finally, Macquarie Group Ltd. raised its position in shares of Bank of New York Mellon by 4.7% in the fourth quarter. Macquarie Group Ltd. now owns 14,529,096 shares of the bank’s stock valued at $683,885,000 after buying an additional 647,347 shares during the last quarter. 84.18% of the stock is owned by institutional investors and hedge funds.

Bank of New York Mellon declared that its Board of Directors has approved a stock buyback plan on Thursday, June 27th that allows the company to repurchase $3.94 billion in shares. This repurchase authorization allows the bank to reacquire up to 9.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

BK has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods raised shares of Bank of New York Mellon from an “underperform” rating to a “market perform” rating and increased their price objective for the stock from $46.00 to $47.00 in a research report on Thursday. Morgan Stanley set a $36.00 price objective on shares of ArcBest and gave the stock a “hold” rating in a research report on Monday, July 8th. UBS Group set a $13.00 price objective on shares of Freeport-McMoRan and gave the stock a “hold” rating in a research report on Wednesday, June 26th. ValuEngine raised shares of Vermillion from a “hold” rating to a “buy” rating in a research report on Wednesday, May 15th. Finally, JPMorgan Chase & Co. initiated coverage on shares of Pinduoduo in a research report on Tuesday, July 9th. They set an “underweight” rating and a $20.48 price objective for the company. Four equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have issued a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $50.45.

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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Earnings History for Bank of New York Mellon (NYSE:BK)

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