Bank of New York Mellon (NYSE:BK) Shares Gap Down to $46.75

Bank of New York Mellon Corp (NYSE:BK)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $48.07, but opened at $46.75. Bank of New York Mellon shares last traded at $46.35, with a volume of 4,690,319 shares.

Several analysts have weighed in on BK shares. JPMorgan Chase & Co. dropped their price objective on shares of Bank of New York Mellon from $50.00 to $49.00 and set an “underweight” rating for the company in a research note on Tuesday, July 9th. Morgan Stanley lifted their price objective on shares of Bank of New York Mellon from $41.00 to $42.00 and gave the stock an “underweight” rating in a research note on Tuesday. Buckingham Research dropped their price objective on shares of Bank of New York Mellon from $53.00 to $50.00 and set a “neutral” rating for the company in a research note on Thursday, July 18th. Zacks Investment Research upgraded shares of Bank of New York Mellon from a “sell” rating to a “hold” rating in a research note on Monday, May 20th. Finally, Deutsche Bank dropped their price objective on shares of Bank of New York Mellon from $47.00 to $45.00 and set a “hold” rating for the company in a research note on Wednesday, August 21st. Four research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $49.82.

The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.71 and a current ratio of 0.71. The stock has a market capitalization of $43.10 billion, a P/E ratio of 11.01, a price-to-earnings-growth ratio of 1.45 and a beta of 1.11. The firm’s fifty day simple moving average is $43.91 and its 200 day simple moving average is $46.66.

Bank of New York Mellon (NYSE:BK) last released its earnings results on Wednesday, July 17th. The bank reported $1.01 EPS for the quarter, beating the consensus estimate of $0.94 by $0.07. Bank of New York Mellon had a net margin of 19.93% and a return on equity of 10.74%. The firm had revenue of $3.92 billion for the quarter, compared to analyst estimates of $3.92 billion. During the same period last year, the firm earned $1.03 EPS. The business’s quarterly revenue was down 5.2% compared to the same quarter last year. Analysts anticipate that Bank of New York Mellon Corp will post 3.93 earnings per share for the current fiscal year.

Bank of New York Mellon declared that its board has approved a stock repurchase plan on Thursday, June 27th that permits the company to repurchase $3.94 billion in outstanding shares. This repurchase authorization permits the bank to purchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

In related news, Vice Chairman William M. Daley purchased 11,350 shares of the firm’s stock in a transaction that occurred on Thursday, July 18th. The shares were bought at an average cost of $44.93 per share, with a total value of $509,955.50. Following the acquisition, the insider now owns 5,700 shares of the company’s stock, valued at approximately $256,101. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Vice Chairman Thomas P. Gibbons sold 318,556 shares of Bank of New York Mellon stock in a transaction that occurred on Wednesday, July 24th. The shares were sold at an average price of $46.72, for a total transaction of $14,882,936.32. Following the sale, the insider now directly owns 539,052 shares in the company, valued at $25,184,509.44. The disclosure for this sale can be found here. 1.71% of the stock is owned by company insiders.

Several institutional investors have recently made changes to their positions in the stock. Boston Partners bought a new stake in shares of Bank of New York Mellon during the 2nd quarter valued at approximately $122,000. Kanawha Capital Management LLC grew its holdings in shares of Bank of New York Mellon by 3.2% during the 2nd quarter. Kanawha Capital Management LLC now owns 49,480 shares of the bank’s stock valued at $2,185,000 after purchasing an additional 1,548 shares during the last quarter. Griffin Asset Management Inc. bought a new stake in shares of Bank of New York Mellon during the 2nd quarter valued at approximately $85,000. Phocas Financial Corp. bought a new stake in shares of Bank of New York Mellon during the 2nd quarter valued at approximately $53,000. Finally, First Manhattan Co. grew its holdings in shares of Bank of New York Mellon by 1.1% during the 2nd quarter. First Manhattan Co. now owns 140,467 shares of the bank’s stock valued at $6,201,000 after purchasing an additional 1,559 shares during the last quarter. 82.39% of the stock is currently owned by institutional investors.

Bank of New York Mellon Company Profile (NYSE:BK)

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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