Bank of New York Mellon Downgraded to Hold by StockNews.com

Bank of New York Mellon (NYSE:BK) has recently faced a shift in analyst sentiment. StockNews.com, a platform that provides investment analysis and ratings, has downgraded the bank from a "buy" rating to a "hold" rating in a report published on Thursday.

Analyst Ratings Update

This downgrade comes amid various opinions from other research firms on Bank of New York Mellon. Royal Bank of Canada reaffirmed a "sector perform" rating, setting a target price of $79.00 for the shares as of October 14. Likewise, Wolfe Research changed its rating from "outperform" to "peer perform" on January 3. In contrast, UBS Group increased their target price on the bank's shares from $88.00 to $94.00 while maintaining a "buy" rating on January 21. Furthermore, Citigroup raised its price target from $75.00 to $82.00, assigning a "neutral" rating back on November 25. Barclays also increased their price objective for the bank from $102.00 to $104.00 and held an "overweight" rating on January 16. A mix of opinions has emerged, with six analysts giving a hold rating and ten others assigning a buy rating. Currently, MarketBeat reports that Bank of New York Mellon has a consensus rating of "Moderate Buy" and an average price target of $88.00.

Current Stock Performance

On the day of the downgrade, Bank of New York Mellon’s stock climbed by 0.7%, reaching $86.35. The trading volume for the stock was roughly 2,483,454 shares, which is less than the average trading volume of 3,971,602. The stock has seen significant fluctuation over the year, with a 52-week low of $52.64 and a high of $87.70. The bank's market capitalization stands at $62.78 billion, with a price-to-earnings (PE) ratio of 14.86. Additionally, the stock has a price-to-earnings-growth (PEG) ratio of 0.98 and a beta of 1.08, indicating its volatility compared to the market. Current ratios are also noted, with a debt-to-equity ratio of 0.83 and quick and current ratios of 0.70 and 0.69, respectively.

Recent Earnings Report

Bank of New York Mellon’s latest quarterly earnings report was announced on January 15, where the bank reported earnings per share (EPS) of $1.72. This figure surpassed analysts' expectations of $1.54 by $0.18. The bank's net profit margin was at 11.35%, and the return on equity was reported at 12.68%. The bank generated revenue of $4.85 billion for the quarter, exceeding consensus projections of $4.66 billion, marking an increase of 11.2% compared to the same quarter last year.

Hedge Fund Activity

The activity among institutional investors shows significant interest in Bank of New York Mellon. Recently, McClarren Financial Advisors Inc. raised its stake in the bank by an impressive 586.4% during the third quarter, now holding 405 shares valued at approximately $29,000. Other hedge funds also made notable adjustments, such as Centricity Wealth Management LLC, which bought new shares valued at about $39,000 during the fourth quarter. Fortitude Family Office LLC increased its holdings by 130.6%, owning 611 shares valued at $44,000 after acquiring more in the last quarter. Institutional investors are dominantly holding 85.31% of the bank's stock.

Company Overview

The Bank of New York Mellon Corporation provides an array of financial services and products both in the United States and internationally. Their operations are segmented into Securities Services, Market and Wealth Services, Investment and Wealth Management, among others. The Securities Services division specifically offers custody, trust, and depositary services, alongside accounting services, middle-office solutions, and more.

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