Bank of New York Mellon Downgraded to Hold Rating

Bank of New York Mellon (NYSE:BK) has received a downgrade from analysts at StockNews.com, who have changed their rating from "buy" to "hold" in a report released on Thursday.

Several other financial firms have also provided their assessments of Bank of New York Mellon recently. Royal Bank of Canada reiterated a "sector perform" rating and set a target price of $79.00 for the bank's shares in a report published on October 14. On the other hand, Wolfe Research downgraded the stock from an "outperform" rating to a "peer perform" rating in a note issued on January 3. In a more bullish move, UBS Group raised its target price from $88.00 to $94.00, maintaining a "buy" rating on January 21. Additionally, Citigroup increased its price target from $75.00 to $82.00, assigning a "neutral" rating on November 25. Barclays also raised their price target from $102.00 to $104.00 and kept an "overweight" rating in a January 16 report. Currently, six analysts rate the stock as a hold, while ten recommend it as a buy. The average target price set for Bank of New York Mellon shares is $88.00, indicating a consensus rating of "Moderate Buy" according to MarketBeat.

Current Stock Performance

During midday trading on Thursday, Bank of New York Mellon shares rose by 0.7%, increasing by $0.61 to $86.35. The trading volume for the day was 2,483,454 shares, which is below the average volume of 3,971,602 shares. The stock has seen a fluctuation in its price over the past year, with a low of $52.64 and a high of $87.70. The company holds a market capitalization of $62.78 billion and has a price-to-earnings (PE) ratio of 14.86. Its price-to-earnings growth (PEG) ratio stands at 0.98, with a beta of 1.08, indicating volatility similar to the market. The debt-to-equity ratio is 0.83, while the current and quick ratios are 0.69 and 0.70, respectively. The firm's 50-day moving average is recorded at $80.52, while the 200-day moving average is at $74.43.

Recent Earnings Report

Bank of New York Mellon last reported its quarterly earnings on January 15. The financial institution announced earnings of $1.72 per share, surpassing the analysts' expectations of $1.54 by $0.18. The bank's net margin was 11.35%, and its return on equity was 12.68%. For the reported quarter, revenue was $4.85 billion, exceeding the anticipated $4.66 billion. This was an 11.2% increase in revenue compared to the same quarter last year, when the company posted an earnings per share of $1.28. Analysts predict that the bank will achieve an earnings per share of 6.86 for the current fiscal year.

Hedge Fund Activity

Recent movements among hedge funds show an increase in interest in Bank of New York Mellon. McClarren Financial Advisors Inc. boosted its stake in the company by an impressive 586.4% during the third quarter, now holding 405 shares valued at around $29,000 after acquiring an additional 346 shares. Another company, Centricity Wealth Management LLC, established a new position in the bank, worth about $39,000 during the fourth quarter. Fortitude Family Office LLC also increased its holdings by 130.6% in the third quarter, now owning 611 shares valued at $44,000 after purchasing extra shares. Modus Advisors LLC and Ashton Thomas Securities LLC both acquired new positions in the bank as well. Collectively, institutional investors and hedge funds own approximately 85.31% of Bank of New York Mellon's stock.

Company Overview

The Bank of New York Mellon Corporation provides a diverse range of financial products and services both in the United States and globally. The company operates through several segments, including Securities Services, Market and Wealth Services, and Investment and Wealth Management. The Securities Services segment includes various offerings such as custody, trust services, accounting, foreign exchange, and data analytics.

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