Bank of New York Mellon (NYSE:BK) Hits New 52-Week High - Here's Why

Key Points

• Bank of New York Mellon's stock reached a new 52-week high of $106.57, indicating strong market performance and trading activity.
• Several analysts have raised their price targets for the stock, with an average rating of "Moderate Buy" and a current average target price of $95.08.
• The company has increased its quarterly dividend to $0.53 per share, resulting in an annualized yield of 2.0%, which reflects positive growth in shareholder returns.

Shares of The Bank of New York Mellon Corporation (NYSE:BK - Get Free Report) reached a new 52-week high on Tuesday . The stock traded as high as $106.57 and last traded at $103.69, with a volume of 2933101 shares traded. The stock had previously closed at $106.10.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on BK. Truist Financial upped their target price on Bank of New York Mellon from $100.00 to $109.00 and gave the company a "hold" rating in a report on Thursday, August 14th. Citigroup upped their target price on Bank of New York Mellon from $92.00 to $105.00 and gave the company a "neutral" rating in a report on Friday. Evercore ISI increased their price objective on Bank of New York Mellon from $88.00 to $90.00 and gave the stock an "in-line" rating in a report on Wednesday, July 2nd. Keefe, Bruyette & Woods increased their price objective on Bank of New York Mellon from $105.00 to $113.00 and gave the stock an "outperform" rating in a report on Wednesday, July 16th. Finally, Wells Fargo & Company increased their price objective on Bank of New York Mellon from $96.00 to $100.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 16th. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $96.62.

Bank of New York Mellon Stock Performance

The business has a 50-day moving average of $99.81 and a two-hundred day moving average of $89.88. The company has a market cap of $73.12 billion, a P/E ratio of 15.83, a P/E/G ratio of 1.00 and a beta of 1.14. The company has a debt-to-equity ratio of 0.86, a current ratio of 0.72 and a quick ratio of 0.72.

Bank of New York Mellon (NYSE:BK - Get Free Report) last issued its quarterly earnings data on Tuesday, July 15th. The bank reported $1.94 earnings per share for the quarter, beating analysts' consensus estimates of $1.73 by $0.21. Bank of New York Mellon had a return on equity of 13.46% and a net margin of 12.27%.The company had revenue of $4.77 billion for the quarter, compared to the consensus estimate of $4.80 billion. During the same quarter last year, the company earned $1.51 earnings per share. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. On average, sell-side analysts predict that The Bank of New York Mellon Corporation will post 6.96 EPS for the current fiscal year.

Bank of New York Mellon Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 7th. Shareholders of record on Friday, July 25th were paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 2.0%. This is a boost from Bank of New York Mellon's previous quarterly dividend of $0.47. The ex-dividend date was Friday, July 25th. Bank of New York Mellon's dividend payout ratio (DPR) is 32.37%.

Insider Buying and Selling

In other Bank of New York Mellon news, EVP J Kevin Mccarthy sold 20,000 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $98.45, for a total value of $1,969,000.00. Following the completion of the sale, the executive vice president directly owned 35,115 shares in the company, valued at approximately $3,457,071.75. This trade represents a 36.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 0.14% of the company's stock.

Institutional Trading of Bank of New York Mellon

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Bank of New York Mellon in the second quarter valued at approximately $1,081,847,000. Nuveen LLC purchased a new stake in Bank of New York Mellon in the 1st quarter valued at $773,627,000. Qube Research & Technologies Ltd acquired a new position in shares of Bank of New York Mellon in the 2nd quarter valued at $135,728,000. GAMMA Investing LLC lifted its stake in shares of Bank of New York Mellon by 9,538.9% in the 1st quarter. GAMMA Investing LLC now owns 1,399,958 shares of the bank's stock valued at $117,414,000 after purchasing an additional 1,385,434 shares during the last quarter. Finally, AustralianSuper Pty Ltd acquired a new position in shares of Bank of New York Mellon in the 1st quarter valued at $92,502,000. Institutional investors and hedge funds own 85.31% of the company's stock.

Bank of New York Mellon Company Profile

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics.