Traders Buy Bank of New York Mellon (BK) on Weakness

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Traders bought shares of Bank of New York Mellon Corp (NYSE:BK) on weakness during trading hours on Wednesday. $51.82 million flowed into the stock on the tick-up and $24.41 million flowed out of the stock on the tick-down, for a money net flow of $27.41 million into the stock. Of all equities tracked, Bank of New York Mellon had the 29th highest net in-flow for the day. Bank of New York Mellon traded down ($0.15) for the day and closed at $52.25

BK has been the topic of a number of research reports. Zacks Investment Research downgraded shares of Bank of New York Mellon from a “buy” rating to a “hold” rating in a research note on Tuesday, May 15th. Raymond James downgraded shares of Bank of New York Mellon from an “outperform” rating to a “market perform” rating in a research note on Thursday, July 12th. Sandler O’Neill reaffirmed a “hold” rating on shares of Bank of New York Mellon in a research note on Friday, July 13th. Keefe, Bruyette & Woods set a $56.00 price target on shares of Bank of New York Mellon and gave the stock a “hold” rating in a research note on Thursday, July 19th. Finally, ValuEngine downgraded shares of Bank of New York Mellon from a “hold” rating to a “sell” rating in a research note on Friday, July 20th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating and five have issued a buy rating to the stock. Bank of New York Mellon currently has a consensus rating of “Hold” and a consensus target price of $58.70.

The firm has a market capitalization of $52.15 billion, a PE ratio of 14.61, a price-to-earnings-growth ratio of 1.63 and a beta of 1.05. The company has a debt-to-equity ratio of 0.82, a quick ratio of 0.69 and a current ratio of 0.69.

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

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 10th. Investors of record on Tuesday, July 31st were issued a $0.28 dividend. The ex-dividend date was Monday, July 30th. This is a boost from Bank of New York Mellon’s previous quarterly dividend of $0.24. This represents a $1.12 dividend on an annualized basis and a yield of 2.14%. Bank of New York Mellon’s dividend payout ratio is currently 31.11%.

Bank of New York Mellon announced that its Board of Directors has initiated a share buyback program on Thursday, June 28th that allows the company to repurchase $2.40 billion in shares. This repurchase authorization allows the bank to repurchase up to 4.4% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its stock is undervalued.

A number of large investors have recently modified their holdings of the stock. Rowland & Co. Investment Counsel ADV bought a new stake in Bank of New York Mellon during the second quarter valued at about $102,000. Quad Cities Investment Group LLC bought a new stake in Bank of New York Mellon during the second quarter valued at about $102,000. Centaurus Financial Inc. bought a new stake in Bank of New York Mellon during the first quarter valued at about $126,000. Kaizen Advisory LLC boosted its holdings in Bank of New York Mellon by 157.6% during the second quarter. Kaizen Advisory LLC now owns 2,558 shares of the bank’s stock valued at $138,000 after acquiring an additional 1,565 shares during the period. Finally, Ostrum Asset Management bought a new stake in Bank of New York Mellon during the first quarter valued at about $148,000. Hedge funds and other institutional investors own 83.40% of the company’s stock.

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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