Stock Traders Buy High Volume of BNY Put Options (NYSE:BK)

Key Points

• Unusual options activity: Traders bought 15,757 put options on BNY — roughly a 663% increase over the typical daily put volume of 2,065, signaling unusually heavy bearish options interest.
• Earnings and stock action: BNY reported Q results of $2.25 EPS (vs. $1.94 est.) and $5.41B revenue (beat), and shares traded up to $137.70, near its 52-week high, with a market cap of $94.77B and a P/E of 17.07.
• Dividend and investor sentiment: The firm declared a $0.53 quarterly dividend (1.5% yield; ex-dividend Apr 27), while major institutions boosted positions and analysts mostly raised targets — consensus rating is a "Moderate Buy" with an average price target of $137.35.

BNY (NYSE:BK - Get Free Report) saw some unusual options trading on Tuesday. Traders acquired 15,757 put options on the company. This is an increase of approximately 663% compared to the typical daily volume of 2,065 put options.

BNY Price Performance

Shares of BK traded up $2.33 during mid-day trading on Tuesday, hitting $137.70. 1,013,164 shares of the stock were exchanged, compared to its average volume of 3,812,453. The company has a debt-to-equity ratio of 0.82, a quick ratio of 0.71 and a current ratio of 0.75. The company has a market cap of $94.77 billion, a PE ratio of 17.07, a price-to-earnings-growth ratio of 1.07 and a beta of 1.06. BNY has a 52-week low of $75.35 and a 52-week high of $138.74. The firm has a 50-day moving average of $120.45 and a two-hundred day moving average of $116.19.

BNY (NYSE:BK - Get Free Report) last posted its 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. BNY had a net margin of 14.60% and a return on equity of 15.29%. The firm had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.14 billion. During the same period last year, the firm posted $1.58 earnings per share. BNY's revenue for the quarter was up 12.9% compared to the same quarter last year. On average, equities analysts predict that BNY will post 8.52 earnings per share for the current year.

BNY Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Monday, April 27th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, April 27th. BNY's dividend payout ratio is currently 26.27%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its position in BNY by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 71,319,884 shares of the bank's stock valued at $8,279,525,000 after purchasing an additional 647,847 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in BNY by 18,044.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 19,670,202 shares of the bank's stock valued at $2,283,514,000 after buying an additional 19,561,793 shares during the period. Ameriprise Financial Inc. raised its holdings in BNY by 18.0% during the 3rd quarter. Ameriprise Financial Inc. now owns 13,345,266 shares of the bank's stock valued at $1,454,116,000 after buying an additional 2,034,781 shares during the period. Norges Bank bought a new stake in BNY in the fourth quarter worth $1,398,624,000. Finally, Invesco Ltd. boosted its stake in BNY by 8.2% during the fourth quarter. Invesco Ltd. now owns 7,680,429 shares of the bank's stock worth $891,621,000 after buying an additional 578,999 shares during the period. Institutional investors own 85.31% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on BK shares. Truist Financial lifted their price objective on BNY from $140.00 to $148.00 and gave the company a "buy" rating in a research report on Friday. TD Cowen increased their target price on shares of BNY from $133.00 to $145.00 and gave the stock a "buy" rating in a report on Wednesday, January 7th. Weiss Ratings upgraded shares of BNY from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Wednesday, March 11th. Citigroup initiated coverage on shares of BNY in a report on Monday, February 23rd. They set a "neutral" rating on the stock. Finally, Keefe, Bruyette & Woods upped their price target on shares of BNY from $143.00 to $150.00 and gave the stock an "outperform" rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $137.35.

About BNY

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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