Investors Buy Large Volume of Bank of New York Mellon Put Options (NYSE:BNY)

Key Points

• Unusual options activity hit Bank of New York Mellon, with investors buying 17,507 put options on Wednesday — about 349% above typical volume.
• Several insiders have been selling shares, including EVP J Kevin McCarthy, who sold 30,000 shares worth about $4.1 million, and VP Shannon Marie Hobbs, who sold 297 shares.
• The bank recently beat earnings expectations, reporting $2.25 EPS versus the $1.94 consensus and posting revenue of $5.41 billion, while analysts currently rate the stock a Moderate Buy with an average target price of $138.08.

Bank of New York Mellon Corporation (NYSE:BNY - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors purchased 17,507 put options on the company. This is an increase of 349% compared to the typical volume of 3,895 put options.

Insider Activity at Bank of New York Mellon

In related news, EVP J Kevin Mccarthy sold 30,000 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $136.50, for a total value of $4,095,000.00. Following the transaction, the executive vice president directly owned 50,238 shares of the company's stock, valued at $6,857,487. This trade represents a 37.39% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Shannon Marie Hobbs sold 297 shares of the business's stock in a transaction on Friday, April 17th. The shares were 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 directly 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 48,091 shares of company stock valued at $6,568,423. Company insiders own 0.17% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Todd Asset Management LLC grew its position in Bank of New York Mellon by 37.5% during 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 period. First National Bank of Omaha acquired a new stake in shares of Bank of New York Mellon during the 3rd quarter valued at approximately $3,044,000. Cullen Investment Group LTD. lifted its position in shares of Bank of New York Mellon by 1,691.4% during the 4th quarter. Cullen Investment Group LTD. now owns 38,730 shares of the bank's stock valued at $4,610,000 after acquiring an additional 36,568 shares during the period. Cibc World Market Inc. boosted its stake in shares of Bank of New York Mellon by 8.6% during the 3rd quarter. Cibc World Market Inc. now owns 130,795 shares of the bank's stock worth $14,251,000 after acquiring an additional 10,377 shares in the last quarter. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of Bank of New York Mellon in the 3rd quarter worth approximately $10,641,000. 85.31% of the stock is owned by hedge funds and other institutional investors.

Bank of New York Mellon Stock Performance

BNY traded down $1.54 on Wednesday, hitting $141.71. 1,231,067 shares of the company traded hands, compared to its average volume of 3,741,628. Bank of New York Mellon has a 12-month low of $87.41 and a 12-month high of $144.98. The company has a 50 day moving average of $133.77 and a 200-day moving average of $123.17. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.82. The stock has a market capitalization of $97.27 billion, a PE ratio of 17.56, a PEG ratio of 1.04 and a beta of 1.07.

Bank of New York Mellon (NYSE:BNY - Get Free Report) last released its earnings results on Thursday, April 16th. The bank reported $2.25 earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $5.14 billion. During the same quarter in the previous year, the company posted $1.58 earnings per share. The company's revenue for the quarter was up 12.9% compared to the same quarter last year. Sell-side analysts anticipate that Bank of New York Mellon will post 8.78 earnings per share for the current year.

Bank of New York Mellon Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 8th. Shareholders of record on Monday, April 27th were given 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 yield of 1.5%. Bank of New York Mellon's dividend payout ratio is presently 26.27%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on BNY. Truist Financial lifted their target price on Bank of New York Mellon from $140.00 to $148.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Barclays raised their price target on Bank of New York Mellon from $143.00 to $149.00 and gave the stock an "overweight" rating in a research note on Friday, April 17th. Morgan Stanley boosted their price objective on Bank of New York Mellon from $135.00 to $139.00 and gave the company an "equal weight" rating in a research note on Friday, April 17th. Weiss Ratings upgraded shares of Bank of New York Mellon from a "buy (a-)" rating to a "buy (a)" rating in a research report on Monday, May 4th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Bank of New York Mellon from $130.50 to $140.00 and gave the company an "overweight" rating in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have given a Hold rating to the stock. 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 Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.