Morgan Stanley Cuts Bank of New York Mellon (NYSE:BK) Price Target to $40.00

Bank of New York Mellon (NYSE:BK) had its target price reduced by equities research analysts at Morgan Stanley from $42.00 to $40.00 in a research report issued to clients and investors on Friday, BenzingaRatingsTable reports. The firm currently has an “underweight” rating on the bank’s stock. Morgan Stanley’s target price would indicate a potential downside of 5.44% from the stock’s previous close.

A number of other research analysts have also weighed in on BK. Keefe, Bruyette & Woods upgraded Bank of New York Mellon from an “underperform” rating to a “market perform” rating and raised their price objective for the company from $46.00 to $47.00 in a report on Thursday, July 18th. JPMorgan Chase & Co. decreased their price objective on Bank of New York Mellon from $50.00 to $49.00 and set an “underweight” rating on the stock in a report on Tuesday, July 9th. ValuEngine upgraded Bank of New York Mellon from a “sell” rating to a “hold” rating in a report on Wednesday. Deutsche Bank decreased their price objective on Bank of New York Mellon from $47.00 to $45.00 and set a “hold” rating on the stock in a report on Wednesday, August 21st. Finally, UBS Group decreased their price objective on Bank of New York Mellon from $49.00 to $45.00 and set a “neutral” rating on the stock in a report on Wednesday, June 26th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $48.90.

Shares of NYSE:BK traded down $0.13 during midday trading on Friday, reaching $42.30. 66,451 shares of the company’s stock traded hands, compared to its average volume of 4,682,323. Bank of New York Mellon has a 1 year low of $40.52 and a 1 year high of $54.27. The company has a market cap of $41.22 billion, a P/E ratio of 10.05, a PEG ratio of 1.34 and a beta of 1.12. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.71 and a current ratio of 0.71. The company has a fifty day simple moving average of $43.79 and a two-hundred day simple moving average of $46.12.

Bank of New York Mellon (NYSE:BK) last announced its earnings results on Wednesday, July 17th. The bank reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.07. Bank of New York Mellon had a return on equity of 10.74% and a net margin of 19.93%. The firm had revenue of $3.92 billion for the quarter, compared to analyst estimates of $3.92 billion. During the same quarter last year, the firm posted $1.03 EPS. The business’s revenue was down 5.2% on a year-over-year basis. As a group, research analysts forecast that Bank of New York Mellon will post 3.94 EPS for the current fiscal year.

Bank of New York Mellon declared that its Board of Directors has authorized a share repurchase plan on Thursday, June 27th that permits the company to repurchase $3.94 billion in outstanding shares. This repurchase authorization permits the bank to reacquire up to 9.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its stock is undervalued.

In other news, Vice Chairman Thomas P. Gibbons sold 318,556 shares of Bank of New York Mellon stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $46.72, for a total transaction of $14,882,936.32. Following the transaction, the insider now owns 539,052 shares in the company, valued at approximately $25,184,509.44. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Vice Chairman William M. Daley purchased 11,350 shares of Bank of New York Mellon stock in a transaction dated Thursday, July 18th. The shares were bought at an average price of $44.93 per share, for a total transaction of $509,955.50. Following the acquisition, the insider now owns 5,700 shares in the company, valued at $256,101. The disclosure for this purchase can be found here. Company insiders own 1.71% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of BK. Trustcore Financial Services LLC increased its position in shares of Bank of New York Mellon by 204.6% during the 2nd quarter. Trustcore Financial Services LLC now owns 658 shares of the bank’s stock worth $29,000 after purchasing an additional 442 shares during the last quarter. Mirova acquired a new stake in shares of Bank of New York Mellon during the 2nd quarter worth about $41,000. Stonebridge Capital Advisors LLC acquired a new stake in shares of Bank of New York Mellon during the 2nd quarter worth about $43,000. Pflug Koory LLC increased its position in shares of Bank of New York Mellon by 69.3% during the 2nd quarter. Pflug Koory LLC now owns 1,185 shares of the bank’s stock worth $52,000 after purchasing an additional 485 shares during the last quarter. Finally, Phocas Financial Corp. acquired a new stake in shares of Bank of New York Mellon during the 2nd quarter worth about $53,000. Institutional investors and hedge funds own 82.39% of the company’s stock.

About Bank of New York Mellon

The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. It offers investment management, custody, foreign exchange, fund broker-dealer, collateral and liquidity, clearing, corporate trust, global payment, trade finance, and cash management services, as well as securities finance and depositary receipts.

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Analyst Recommendations for Bank of New York Mellon (NYSE:BK)

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