Bank of New York Mellon Price Target Adjusted by Morgan Stanley

On January 4, 2025, Morgan Stanley lowered its price target for Bank of New York Mellon (NYSE:BK) from $94.00 to $90.00 in a note that was shared with investors. Despite this adjustment, the investment firm maintains an overweight rating for the bank’s stock, indicating a generally favorable outlook.

Several other research analysts have also provided their assessments regarding Bank of New York Mellon’s stock performance. On October 14th, Royal Bank of Canada reaffirmed a "sector perform" rating and set a price target of $79.00. Meanwhile, Keefe, Bruyette & Woods revised their price projection of Bank of New York Mellon upwards from $87.00 to $96.00, noting an "outperform" rating on a report dated December 3rd. Similarly, on October 8th, UBS Group raised its price objective from $73.00 to $82.00 and assigned a "buy" rating. StockNews.com recently upgraded the stock from a "hold" to a "buy" rating in a report published on December 14th. Furthermore, Deutsche Bank Aktiengesellschaft increased their target price from $82.00 to $85.00 while also providing a "buy" rating in a report dated November 11th.

From a broader perspective, five analysts have rated Bank of New York Mellon with a hold recommendation, while ten have provided a buy rating, yielding an average rating of "Moderate Buy" according to MarketBeat.com. The average price target across all analysts currently stands at $80.77.

Current Trading Insights

As of Friday, the stock opened at $76.93, with a market capitalization of approximately $55.93 billion. The shares have a price-to-earnings (PE) ratio of 16.72 and a price-to-earnings growth (PEG) ratio of 0.91. The beta value for the stock is 1.07, indicating its volatility in relation to the market. Over the past year, Bank of New York Mellon recorded a low of $51.86 and a high of $82.72.

Latest Earnings Report

Bank of New York Mellon announced its quarterly earnings on October 11th, reporting earnings per share (EPS) of $1.52, surpassing the consensus estimate of $1.41 by $0.11. The bank demonstrated a return on equity of 12.06% and a net margin of 9.44%. Revenue for the quarter reached $4.65 billion, exceeding the anticipated $4.52 billion. Analysts predict that the bank will achieve earnings of $5.84 per share for the current fiscal year.

Dividend Information

The bank recently declared a quarterly dividend of $0.47, which was paid on November 1st to shareholders of record as of October 21st. This annualizes to a total dividend of $1.88, yielding a dividend yield of approximately 2.44%. The current dividend payout ratio stands at 40.87%.

Insider Trading Activity

In recent news regarding insider trading, VP Hanneke Smits sold 16,475 shares at an average price of $76.47, totaling approximately $1.26 million. After the transaction, Smits holds 157,455 shares valued at around $12.04 million, marking a 9.47% reduction in their shareholding. Additionally, EVP J. Kevin McCarthy sold 25,000 shares at an average price of $76.31 for a total of about $1.9 million, resulting in a 24.90% decrease in their holdings. Notably, company insiders collectively own about 0.14% of the stock.

Institutional Ownership Trends

Institutional investors and hedge funds have also been active, with State Street Corp increasing its ownership by 2.0% during the third quarter, now holding over 33 million shares valued at approximately $2.39 billion. FMR LLC significantly boosted its stake by 78.6% during the same period, acquiring over 19 million shares for roughly $1.39 billion. Other institutions, including Ameriprise Financial Inc. and Victory Capital Management Inc., also reported increases in their shares. Collectively, institutional investors own approximately 85.31% of the company’s stock.

About Bank of New York Mellon

The Bank of New York Mellon Corporation is a prominent financial services company offering a variety of financial products and services domestically and internationally. It operates through several segments, including Securities Services, Market and Wealth Services, and Investment and Wealth Management.

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