The Bank of New York Mellon Corporation [NYSE: BK] stock went on an upward path that rose over 0.31% on Tuesday, amounting to a one-week price increase of more than 3.20%. The company report on June 29, 2021 that BNY Mellon Announces Intention to Increase Quarterly Common Stock Dividend by 10 Percent to $0.34 per Share and Authorization to Repurchase up to $6.0 Billion of Common Stock.
On June 24, 2021, the Federal Reserve released the results of the 2021 bank stress test, which demonstrates the resilience and strength of BNY Mellon’s business model and capital position. The Federal Reserve also notified the company that its Stress Capital Buffer (SCB) requirement, effective October 1, 2021, will remain 2.5%¹, equal to the regulatory minimum. The Federal Reserve’s recent restrictions on common stock dividends and share repurchases applicable to the large banks that are subject to the supervisory stress test, including BNY Mellon, will end after June 30, 2021.
The company intends to increase its quarterly cash dividend on its common stock by approximately 10% from $0.31 to $0.34 per share, commencing as early as the third quarter of 2021, subject to board approval.
Over the last 12 months, BK stock rose by 38.08%. The one-year The Bank of New York Mellon Corporation stock forecast points to a potential upside of 3.39. The average equity rating for BK stock is currently 2.20, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $44.02 billion, with 882.56 million shares outstanding and 873.26 million shares in the current float. Compared to the average trading volume of 4.67M shares, BK stock reached a trading volume of 3877080 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on The Bank of New York Mellon Corporation [BK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BK shares is $52.81 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BK stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Keefe Bruyette have made an estimate for The Bank of New York Mellon Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 17, 2021. The new note on the price target was released on March 24, 2021, representing the official price target for The Bank of New York Mellon Corporation stock. Previously, the target price had yet another raise from $44 to $57, while Citigroup kept a Buy rating on BK stock.
The Average True Range (ATR) for The Bank of New York Mellon Corporation is set at 1.04, with the Price to Sales ratio for BK stock in the period of the last 12 months amounting to 13.43. The Price to Book ratio for the last quarter was 1.11, with the Price to Cash per share for the same quarter was set at 232.40. Price to Free Cash Flow for BK in the course of the last twelve months was 34.96.
BK Stock Performance Analysis:
The Bank of New York Mellon Corporation [BK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.20. With this latest performance, BK shares dropped by -2.04% in over the last four-week period, additionally plugging by 23.12% over the last 6 months – not to mention a rise of 38.08% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BK stock in for the last two-week period is set at 53.61, with the RSI for the last a single of trading hit 56.13, and the three-weeks RSI is set at 53.39 for The Bank of New York Mellon Corporation [BK]. The present Moving Average for the last 50 days of trading for this stock 50.52, while it was recorded at 50.50 for the last single week of trading, and 43.44 for the last 200 days.
Insight into The Bank of New York Mellon Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and The Bank of New York Mellon Corporation [BK] shares currently have an operating margin of +25.58. The Bank of New York Mellon Corporation’s Net Margin is presently recorded at +21.49.
Return on Total Capital for BK is now 3.98, given the latest momentum, and Return on Invested Capital for the company is 5.35. Return on Equity for this stock inclined to 8.27, with Return on Assets sitting at 0.85. When it comes to the capital structure of this company, The Bank of New York Mellon Corporation [BK] has a Total Debt to Total Equity ratio set at 140.59. Additionally, BK Total Debt to Total Capital is recorded at 58.44, with Total Debt to Total Assets ending up at 13.71. Long-Term Debt to Equity for the company is recorded at 55.27, with the Long-Term Debt to Total Capital now at 20.70.
Reflecting on the efficiency of the workforce at the company, The Bank of New York Mellon Corporation [BK] managed to generate an average of $74,454 per employee.
BK Stock EPS
With the latest financial reports released by the company, The Bank of New York Mellon Corporation posted 1.01/share EPS, while the average EPS was predicted by analysts to be reported at 0.91/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 11.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The Bank of New York Mellon Corporation go to 13.30%.
The Bank of New York Mellon Corporation [BK] Insider Position Details
There are presently around $37,072 million, or 84.90% of BK stock, in the hands of institutional investors. The top three institutional holders of BK stocks are: BERKSHIRE HATHAWAY INC with ownership of 72,357,453, which is approximately 0% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 69,154,302 shares of the stock with an approximate value of $3.52 billion in BK stocks shares; and DODGE & COX, currently with $3.13 billion in BK stock with ownership of nearly 0.178% of the company’s market capitalization.
Positions in The Bank of New York Mellon Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 493 institutional holders increased their position in The Bank of New York Mellon Corporation [NYSE:BK] by around 51,037,307 shares. Additionally, 446 investors decreased positions by around 63,667,024 shares, while 197 investors held positions by with 614,192,578 shares. The mentioned changes placed institutional holdings at 728,896,909 shares, according to the latest SEC report filing. BK stock had 134 new institutional investments in for a total of 5,093,834 shares, while 84 institutional investors sold positions of 16,226,664 shares during the same period.