Zacks Research Has Optimistic Outlook of BK Q3 Earnings

Key Points

• Zacks Research has raised its Q3 2025 earnings estimate for Bank of New York Mellon to $1.61 per share, slightly above the previous estimate of $1.60.
• The bank recently announced an increase in its quarterly dividend to $0.53, up from $0.47, reflecting a 2.0% annualized dividend yield.
• Market analysts have adjusted their price targets for Bank of New York Mellon, with recommendations varying from "hold" to "outperform," indicating a consensus rating of "Moderate Buy".

The Bank of New York Mellon Corporation (NYSE:BK - Free Report) - Stock analysts at Zacks Research increased their Q3 2025 earnings estimates for Bank of New York Mellon in a research note issued to investors on Tuesday, August 12th. Zacks Research analyst R. Department now anticipates that the bank will post earnings of $1.61 per share for the quarter, up from their prior estimate of $1.60. The consensus estimate for Bank of New York Mellon's current full-year earnings is $6.96 per share. Zacks Research also issued estimates for Bank of New York Mellon's FY2025 earnings at $6.89 EPS, Q2 2026 earnings at $1.95 EPS, Q3 2026 earnings at $1.92 EPS, FY2026 earnings at $7.58 EPS and FY2027 earnings at $8.49 EPS.

A number of other equities analysts have also weighed in on the stock. Keefe, Bruyette & Woods boosted their price objective on shares of Bank of New York Mellon from $105.00 to $113.00 and gave the company an "outperform" rating in a research report on Wednesday, July 16th. Evercore ISI boosted their price objective on shares of Bank of New York Mellon from $88.00 to $90.00 and gave the company an "in-line" rating in a research report on Wednesday, July 2nd. Morgan Stanley boosted their price objective on shares of Bank of New York Mellon from $95.00 to $101.00 and gave the company an "overweight" rating in a research report on Wednesday, July 16th. Truist Financial boosted their price objective on shares of Bank of New York Mellon from $100.00 to $109.00 and gave the company a "hold" rating in a research report on Thursday. Finally, Wells Fargo & Company boosted their price objective on shares of Bank of New York Mellon from $96.00 to $100.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 16th. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $95.08.

Bank of New York Mellon Price Performance

Shares of NYSE BK traded up $0.66 on Wednesday, hitting $101.66. The company's stock had a trading volume of 2,966,130 shares, compared to its average volume of 4,233,238. Bank of New York Mellon has a 12-month low of $65.01 and a 12-month high of $104.47. The company has a market capitalization of $71.69 billion, a price-to-earnings ratio of 15.52, a price-to-earnings-growth ratio of 0.97 and a beta of 1.12. The company has a debt-to-equity ratio of 0.86, a current ratio of 0.72 and a quick ratio of 0.72. The stock has a 50 day moving average of $95.77 and a 200-day moving average of $88.10.

Bank of New York Mellon (NYSE:BK - Get Free Report) last announced its quarterly earnings results on Tuesday, July 15th. The bank reported $1.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.73 by $0.21. Bank of New York Mellon had a net margin of 12.27% and a return on equity of 13.46%. The company had revenue of $4.77 billion for the quarter, compared to the consensus estimate of $4.80 billion. During the same quarter in the prior year, the firm earned $1.51 earnings per share. The company's revenue for the quarter was up 9.4% compared to the same quarter last year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Bank of New York Mellon by 0.7% during the second quarter. Vanguard Group Inc. now owns 71,092,148 shares of the bank's stock worth $6,477,206,000 after purchasing an additional 517,081 shares during the period. Geode Capital Management LLC raised its holdings in shares of Bank of New York Mellon by 4.3% during the second quarter. Geode Capital Management LLC now owns 18,898,373 shares of the bank's stock worth $1,717,074,000 after purchasing an additional 785,478 shares during the period. Artisan Partners Limited Partnership raised its holdings in shares of Bank of New York Mellon by 0.9% during the second quarter. Artisan Partners Limited Partnership now owns 15,803,214 shares of the bank's stock worth $1,439,831,000 after purchasing an additional 139,544 shares during the period. Ameriprise Financial Inc. raised its holdings in shares of Bank of New York Mellon by 1.9% during the first quarter. Ameriprise Financial Inc. now owns 12,043,601 shares of the bank's stock worth $1,010,093,000 after purchasing an additional 221,613 shares during the period. Finally, Norges Bank acquired a new stake in shares of Bank of New York Mellon during the second quarter worth $1,081,847,000. 85.31% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Bank of New York Mellon

In other news, EVP J Kevin Mccarthy sold 20,000 shares of the company's stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $98.45, for a total value of $1,969,000.00. Following the completion of the transaction, the executive vice president directly owned 35,115 shares in the company, valued at approximately $3,457,071.75. This represents a 36.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.14% of the company's stock.

Bank of New York Mellon Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 7th. Stockholders of record on Friday, July 25th were paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 2.1%. 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 payout ratio is currently 32.37%.

About Bank of New York Mellon

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.