Bank of New York Mellon (BK) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of Bank of New York Mellon (NYSE:BK) from a buy rating to a hold rating in a research report released on Wednesday morning.

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. Higher interest rates, rising loan demand and steadily improving fee income are expected to aid revenue growth. Also, potential lesser regulations, lower tax rates and cost-saving initiatives are likely to drive profitability in the quarters ahead. However, concentration risk arising from significant dependence on fee-based income remains a matter of concern. If there is any change in individual investment preferences, regulatory amendments or a slowdown in capital market activities, it might hamper the company's financials.”

Other equities research analysts have also recently issued research reports about the company. Deutsche Bank upped their price objective on Bank of New York Mellon from $64.00 to $65.00 and gave the stock a buy rating in a research note on Tuesday, March 6th. ValuEngine upgraded Bank of New York Mellon from a hold rating to a buy rating in a research note on Thursday, April 19th. Sandler O’Neill reiterated a hold rating and set a $54.00 price objective on shares of Bank of New York Mellon in a research note on Monday, April 9th. Keefe, Bruyette & Woods set a $57.00 target price on Bank of New York Mellon and gave the stock a hold rating in a report on Thursday, March 8th. Finally, Goldman Sachs Group lowered 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. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and five have given a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $58.32.

Shares of Bank of New York Mellon opened at $57.37 on Wednesday, MarketBeat Ratings reports. Bank of New York Mellon has a 12-month low of $49.01 and a 12-month high of $58.99. The company has a market cap of $57.95 billion, a PE ratio of 15.94, a P/E/G ratio of 1.73 and a beta of 1.20. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 0.77.

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 (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.14. Bank of New York Mellon had a return on equity of 11.27% and a net margin of 25.20%. The company had revenue of $4.18 billion for the quarter, compared to analysts’ expectations of $4.04 billion. During the same quarter in the prior year, the business posted $0.83 EPS. The business’s revenue was up 8.7% compared to the same quarter last year. equities analysts expect that Bank of New York Mellon will post 4.27 earnings per share for the current fiscal year.

In other Bank of New York Mellon news, EVP J Kevin Mccarthy sold 15,000 shares of the company’s stock in a transaction on Monday, April 23rd. The stock was sold at an average price of $55.89, for a total value of $838,350.00. Following the transaction, the executive vice president now directly owns 100,609 shares of the company’s stock, valued at approximately $5,623,037.01. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Kurtis R. Kurimsky sold 4,701 shares of the company’s stock in a transaction on Friday, May 11th. The shares were sold at an average price of $57.44, for a total value of $270,025.44. Following the completion of the transaction, the insider now directly owns 16,487 shares in the company, valued at $947,013.28. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 67,701 shares of company stock worth $3,796,375. Insiders own 1.76% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of BK. Trian Fund Management L.P. lifted its position in shares of Bank of New York Mellon by 2.3% during the 1st quarter. Trian Fund Management L.P. now owns 16,136,596 shares of the bank’s stock valued at $831,519,000 after acquiring an additional 360,164 shares during the period. Artisan Partners Limited Partnership lifted its position in shares of Bank of New York Mellon by 1.0% during the 1st quarter. Artisan Partners Limited Partnership now owns 13,605,620 shares of the bank’s stock valued at $701,098,000 after acquiring an additional 134,673 shares during the period. Geode Capital Management LLC lifted its position in shares of Bank of New York Mellon by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 10,680,589 shares of the bank’s stock valued at $574,033,000 after acquiring an additional 161,352 shares during the period. Fiduciary Management Inc. WI lifted its position in shares of Bank of New York Mellon by 1.0% during the 1st quarter. Fiduciary Management Inc. WI now owns 8,125,128 shares of the bank’s stock valued at $418,688,000 after acquiring an additional 80,755 shares during the period. Finally, Vulcan Value Partners LLC lifted its position in shares of Bank of New York Mellon by 0.3% during the 4th quarter. Vulcan Value Partners LLC now owns 5,917,561 shares of the bank’s stock valued at $318,720,000 after acquiring an additional 20,243 shares during the period. 82.08% 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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Analyst Recommendations for Bank of New York Mellon (NYSE:BK)

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