The Bank of New York Mellon (BK) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of The Bank of New York Mellon (NYSE:BK) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning.

According to Zacks, “BNY Mellon's shares have outperformed the industry in the last six 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. Also, potential lesser regulations, lower tax rates and cost-saving initiatives are likely to drive profitability. However, concentration risk arising from significant dependence on fee-based income remains a matter of concern. This might hamper the company’s financials if there is any change in individual investment preferences, regulatory amendments or a slowdown in capital market activities.”

BK has been the subject of several other reports. Morgan Stanley upgraded shares of The Bank of New York Mellon from an equal weight rating to an overweight rating and set a $60.00 target price for the company in a research report on Friday, January 19th. ValuEngine cut shares of The Bank of New York Mellon from a buy rating to a hold rating in a research report on Wednesday, May 2nd. Goldman Sachs cut shares of The Bank of New York Mellon from a buy rating to a neutral rating in a research report on Monday, March 12th. They noted that the move was a valuation call. Deutsche Bank dropped their target price on shares of The Bank of New York Mellon from $64.00 to $60.00 and set a buy rating for the company in a research report on Friday, April 6th. Finally, Keefe, Bruyette & Woods set a $57.00 target price on shares of The Bank of New York Mellon and gave the company a hold rating in a research report on Thursday, March 8th. One research analyst has rated the stock with a sell rating, thirteen have issued a hold rating and five have issued a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus target price of $58.15.

Shares of The Bank of New York Mellon opened at $56.89 on Tuesday, MarketBeat reports. The company has a market capitalization of $57.91 billion, a PE ratio of 14.65, a PEG ratio of 1.76 and a beta of 1.22. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.77. The Bank of New York Mellon has a 12 month low of $56.63 and a 12 month high of $57.35.

The Bank of New York Mellon (NYSE:BK) last issued its earnings results on Thursday, April 19th. The bank reported $1.10 EPS for the quarter, beating the consensus estimate of $0.96 by $0.14. The company had revenue of $4.18 billion during the quarter, compared to analysts’ expectations of $4.04 billion. The Bank of New York Mellon had a net margin of 25.20% and a return on equity of 11.27%. The business’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same period in the previous year, the company earned $0.83 EPS. research analysts expect that The Bank of New York Mellon will post 4.19 EPS for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 11th. Investors of record on Tuesday, May 1st were given a dividend of $0.24 per share. This represents a $0.96 dividend on an annualized basis and a yield of 1.69%. The ex-dividend date of this dividend was Monday, April 30th. The Bank of New York Mellon’s dividend payout ratio is 26.67%.

In other The Bank of New York Mellon news, insider Bridget E. Engle sold 38,928 shares of the company’s stock in a transaction that occurred on Thursday, February 22nd. The shares were sold at an average price of $56.62, for a total value of $2,204,103.36. Following the completion of the transaction, the insider now directly owns 68,046 shares in the company, valued at approximately $3,852,764.52. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Kurtis R. Kurimsky sold 4,701 shares of the company’s stock in a transaction that occurred on Friday, May 11th. The shares were sold at an average price of $57.44, for a total transaction of $270,025.44. Following the completion of the transaction, the insider now owns 16,487 shares of the company’s stock, valued at $947,013.28. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 106,629 shares of company stock valued at $6,000,479. 1.76% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Segall Bryant & Hamill LLC increased its position in The Bank of New York Mellon by 2.0% in the 1st quarter. Segall Bryant & Hamill LLC now owns 113,466 shares of the bank’s stock valued at $5,847,000 after acquiring an additional 2,216 shares during the period. Trian Fund Management L.P. increased its position in 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 valued at $831,519,000 after acquiring an additional 360,164 shares during the period. Cubist Systematic Strategies LLC increased its position in The Bank of New York Mellon by 35.1% in the 1st quarter. Cubist Systematic Strategies LLC now owns 114,898 shares of the bank’s stock valued at $5,921,000 after acquiring an additional 29,867 shares during the period. Point72 Asset Management L.P. acquired a new position in The Bank of New York Mellon in the 1st quarter valued at approximately $23,890,000. Finally, Mariner LLC increased its position in The Bank of New York Mellon by 53.4% in the 1st quarter. Mariner LLC now owns 10,076 shares of the bank’s stock valued at $519,000 after acquiring an additional 3,509 shares during the period. Hedge funds and other institutional investors own 84.05% of the company’s stock.

About The Bank of New York Mellon

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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