Bank of New York Mellon Price Target Adjusted by Morgan Stanley

On January 4th, 2025, Morgan Stanley announced a reduction in the price target for Bank of New York Mellon (NYSE:BK) from $94.00 to $90.00 in a research note distributed to investors. Despite this adjustment, Morgan Stanley maintains an overweight rating for the bank's stock.

Several other analysts have recently shared their perspectives on Bank of New York Mellon. For instance, Royal Bank of Canada reaffirmed a "sector perform" rating on the bank, setting a price target of $79.00 in a report released on October 14th. Keefe, Bruyette & Woods increased their price target from $87.00 to $96.00, assigning an "outperform" rating on December 3rd. Meanwhile, UBS Group raised their target from $73.00 to $82.00, giving the bank a "buy" rating in early October.

In addition, StockNews.com upgraded Bank of New York Mellon from a "hold" rating to a "buy" rating on December 14th. Deutsche Bank also increased its target from $82.00 to $85.00 while assigning a "buy" rating on November 11th. Overall, five analysts suggest holding the stock, while ten analysts recommend buying it. According to MarketBeat.com, the average rating for Bank of New York Mellon is "Moderate Buy," with an average price target set at $80.77.

Current Stock Performance

As of January 4th, NYSE BK opened at $76.93. The bank has a market capitalization of $55.93 billion. Its price-to-earnings (PE) ratio stands at 16.72, with a price-to-earnings-growth (PEG) ratio of 0.91 and a beta of 1.07. Over the past year, Bank of New York Mellon has seen a low of $51.86 and a high of $82.72. The bank's current ratio and quick ratio both stand at 0.70, and its debt-to-equity ratio is 0.89. The fifty-day and two-hundred-day simple moving averages are $78.38 and $70.75, respectively.

In its last earnings report on October 11th, Bank of New York Mellon announced earnings of $1.52 per share for the quarter, surpassing the consensus estimate of $1.41 per share by $0.11. The bank recorded a return on equity of 12.06% and a net margin of 9.44%, with revenue hitting $4.65 billion, which exceeds the anticipated $4.52 billion. Analysts predict Earnings Per Share (EPS) of 5.84 for the current fiscal year.

Dividend Information

The bank also declared a quarterly dividend, which was paid on November 1st. The amount distributed was $0.47 for shareholders on record as of October 21st, which translates to an annualized dividend of $1.88 and a yield of 2.44%. Currently, Bank of New York Mellon's dividend payout ratio is 40.87%.

Insider Transactions

In additional news, Vice President Hanneke Smits recently sold 16,475 shares at an average price of $76.47, totaling approximately $1.26 million. After this transaction, they hold 157,455 shares valued at about $12.04 million. Furthermore, Executive Vice President J. Kevin McCarthy sold 25,000 shares at an average price of $76.31, resulting in total sales of roughly $1.91 million. This sale reduced his holdings to 75,404 shares worth about $5.75 million. Insider ownership of the stock stands at approximately 0.14%.

Institutional Activity

Several institutional investors have recently bought or sold shares of Bank of New York Mellon. State Street Corp increased its stake by 2.0% in the third quarter, owning 33,313,594 shares worth about $2.39 billion. FMR LLC raised its holdings by 78.6%, now owning 19,338,722 shares valued at approximately $1.39 billion. Ameriprise Financial Inc. boosted its stake by 4.2%, owning around 10.42 million shares valued at $623.89 million. Other notable increases include Victory Capital Management and Legal & General Group Plc. Currently, around 85.31% of the stock is held by institutional investors.

About Bank of New York Mellon

The Bank of New York Mellon Corporation offers various financial products and services in the U.S. and globally. The company operates through several segments, including Securities Services, Market and Wealth Services, Investment and Wealth Management, and others. The Securities Services segment provides custody, trust, depositary, accounting, middle-office solutions, and more.

Bank, Market, Stock