Bank of New York Mellon (NYSE:BNY) Hits New 12-Month High - Still a Buy?

Key Points

• Bank of New York Mellon hit a new 52-week high, trading as high as $145.02 after closing at $142.09 the prior day, signaling continued momentum in the stock.
• Several analysts have raised price targets on BNY, with Keefe, Bruyette & Woods lifting its target to $150 and JPMorgan to $140; the consensus rating remains Moderate Buy with an average target of $138.08.
• The company reported strong quarterly results, beating earnings and revenue estimates with EPS of $2.25 versus $1.94 expected and revenue up 12.9% year over year, while also paying a quarterly dividend of $0.53 per share.

Bank of New York Mellon Corporation (NYSE:BNY - Get Free Report) shares reached a new 52-week high during trading on Friday . The stock traded as high as $145.02 and last traded at $144.52, with a volume of 486954 shares changing hands. The stock had previously closed at $142.09.

Analysts Set New Price Targets

BNY has been the topic of several research analyst reports. Keefe, Bruyette & Woods lifted their price target on Bank of New York Mellon from $143.00 to $150.00 and gave the company an "outperform" rating in a research report on Friday, April 17th. Citigroup initiated coverage on Bank of New York Mellon in a research report on Monday, February 23rd. They set a "neutral" rating on the stock. JPMorgan Chase & Co. lifted their price target on Bank of New York Mellon from $130.50 to $140.00 and gave the company an "overweight" rating in a research report on Monday, May 11th. Weiss Ratings upgraded Bank of New York Mellon from a "buy (a-)" rating to a "buy (a)" rating in a research report on Monday, May 4th. Finally, Morgan Stanley lifted their price target on Bank of New York Mellon from $135.00 to $139.00 and gave the company an "equal weight" rating in a research report on Friday, April 17th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $138.08.

Bank of New York Mellon Price Performance

The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 0.82. The firm has a market cap of $98.56 billion, a price-to-earnings ratio of 17.79, a price-to-earnings-growth ratio of 1.02 and a beta of 1.07. The stock has a 50-day moving average of $134.74 and a two-hundred day moving average of $123.66.

Bank of New York Mellon (NYSE:BNY - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The bank reported $2.25 earnings per share for the quarter, beating analysts' consensus estimates of $1.94 by $0.31. Bank of New York Mellon had a return on equity of 15.29% and a net margin of 14.60%.The business had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.14 billion. During the same quarter last year, the company posted $1.58 EPS. Bank of New York Mellon's revenue for the quarter was up 12.9% on a year-over-year basis. On average, analysts anticipate that Bank of New York Mellon Corporation will post 8.78 EPS for the current year.

Bank of New York Mellon Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 8th. Stockholders of record on Monday, April 27th were issued a dividend of $0.53 per share. The ex-dividend date was Monday, April 27th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.5%. Bank of New York Mellon's payout ratio is currently 26.27%.

Insider Transactions at Bank of New York Mellon

In related news, VP Shannon Marie Hobbs sold 297 shares of Bank of New York Mellon stock in a transaction on Friday, April 17th. The stock was sold at an average price of $137.05, for a total transaction of $40,703.85. Following the completion of the sale, the vice president owned 15,206 shares of the company's stock, valued at approximately $2,083,982.30. This trade represents a 1.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Alejandro Perez sold 12,504 shares of Bank of New York Mellon stock in a transaction on Friday, April 17th. The shares were sold at an average price of $137.01, for a total value of $1,713,173.04. Following the sale, the executive vice president directly owned 62,613 shares of the company's stock, valued at approximately $8,578,607.13. The trade was a 16.65% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 48,091 shares of company stock worth $6,568,423 in the last ninety days. Company insiders own 0.17% of the company's stock.

Institutional Trading of Bank of New York Mellon

A number of institutional investors have recently bought and sold shares of the company. Todd Asset Management LLC lifted its position in shares of Bank of New York Mellon by 37.5% in the fourth quarter. Todd Asset Management LLC now owns 370,998 shares of the bank's stock worth $43,069,000 after buying an additional 101,142 shares during the last quarter. Cullen Investment Group LTD. increased its stake in shares of Bank of New York Mellon by 1,691.4% in the fourth quarter. Cullen Investment Group LTD. now owns 38,730 shares of the bank's stock worth $4,610,000 after purchasing an additional 36,568 shares during the period. First National Bank of Omaha bought a new position in shares of Bank of New York Mellon in the third quarter worth about $3,044,000. Cibc World Market Inc. increased its stake in shares of Bank of New York Mellon by 8.6% in the third quarter. Cibc World Market Inc. now owns 130,795 shares of the bank's stock worth $14,251,000 after purchasing an additional 10,377 shares during the period. Finally, CIBC Asset Management Inc increased its stake in Bank of New York Mellon by 53.8% during the fourth quarter. CIBC Asset Management Inc now owns 182,002 shares of the bank's stock valued at $21,129,000 after acquiring an additional 63,627 shares during the period. Institutional investors and hedge funds own 85.31% of the company's stock.

About Bank of New York Mellon

BNY, formerly known as BNY Mellon, is a global financial services company headquartered in New York City. Formed in 2007 through the merger of the Bank of New York and Mellon Financial Corporation, BNY traces its roots back to 1784, making it one of the oldest banking institutions in the United States. It was also the first company listed on the New York Stock Exchange.

BNY operates at the center of the world's capital markets, partnering with clients to help them operate more efficiently and accelerate growth.

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