Investors Buy Shares of Bank of New York Mellon (BK) on Weakness

Investors bought shares of Bank of New York Mellon Corp (NYSE:BK) on weakness during trading hours on Tuesday. $79.76 million flowed into the stock on the tick-up and $32.34 million flowed out of the stock on the tick-down, for a money net flow of $47.42 million into the stock. Of all stocks tracked, Bank of New York Mellon had the 24th highest net in-flow for the day. Bank of New York Mellon traded down ($0.06) for the day and closed at $52.31

BK has been the subject of several research analyst reports. Zacks Investment Research raised shares of Bank of New York Mellon from a “sell” rating to a “hold” rating and set a $57.00 price objective for the company in a report on Monday, September 17th. Raymond James downgraded shares of Bank of New York Mellon from an “outperform” rating to a “market perform” rating in a report on Thursday, July 12th. ValuEngine downgraded shares of Bank of New York Mellon from a “hold” rating to a “sell” rating in a report on Friday, July 20th. Vining Sparks reissued a “buy” rating and issued a $62.00 price target on shares of Bank of New York Mellon in a report on Monday, July 23rd. Finally, Sandler O’Neill reissued a “hold” rating on shares of Bank of New York Mellon in a report on Friday, July 13th. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $58.50.

The company has a debt-to-equity ratio of 0.82, a quick ratio of 0.69 and a current ratio of 0.69. The firm has a market cap of $53.39 billion, a price-to-earnings ratio of 14.53, a PEG ratio of 1.67 and a beta of 1.05.

Bank of New York Mellon (NYSE:BK) last posted its quarterly earnings data on Thursday, July 19th. The bank reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $1.02 by $0.01. Bank of New York Mellon had a net margin of 25.08% and a return on equity of 11.40%. The company had revenue of $4.14 billion during the quarter, compared to analyst estimates of $4.13 billion. During the same period in the prior year, the firm earned $0.88 earnings per share. The business’s quarterly revenue was up 4.6% on a year-over-year basis. research analysts anticipate that Bank of New York Mellon Corp will post 4.18 EPS for the current year.

Bank of New York Mellon announced that its board has approved a share repurchase plan on Thursday, June 28th that permits the company to buyback $2.40 billion in shares. This buyback authorization permits the bank to purchase up to 4.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

A number of hedge funds have recently bought and sold shares of the business. FMR LLC lifted its stake in Bank of New York Mellon by 123.2% during the second quarter. FMR LLC now owns 18,383,793 shares of the bank’s stock valued at $991,438,000 after buying an additional 10,147,809 shares in the last quarter. Trian Fund Management L.P. increased its holdings in shares of 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 purchasing an additional 360,164 shares during the period. Artisan Partners Limited Partnership increased its holdings in shares of Bank of New York Mellon by 0.5% in the 2nd quarter. Artisan Partners Limited Partnership now owns 13,668,727 shares of the bank’s stock valued at $737,154,000 after purchasing an additional 63,107 shares during the period. Morgan Stanley increased its holdings in shares of Bank of New York Mellon by 66.0% in the 2nd quarter. Morgan Stanley now owns 8,460,980 shares of the bank’s stock valued at $456,300,000 after purchasing an additional 3,363,091 shares during the period. Finally, Fiduciary Management Inc. WI increased its holdings in shares of Bank of New York Mellon by 1.0% in the 1st quarter. Fiduciary Management Inc. WI now owns 8,125,128 shares of the bank’s stock valued at $418,688,000 after purchasing an additional 80,755 shares during the period. 83.36% of the stock is owned by institutional investors.

About Bank of New York Mellon (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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