First National Trust Co has decreased its holdings in The Bank of New York Mellon Corporation (NYSE: BK) by 26.5% during the second quarter, according to Holdings Channel. The institutional investor now possesses 16,666 shares of the bank’s stock, having sold 6,004 shares in the recent quarter. As of the end of June, First National Trust Co’s investment in Bank of New York Mellon was valued at approximately $1.5 million.
This reduction in shares comes amid a broader trend among institutional investors and hedge funds to adjust their positions in the financial giant. For instance, Cornerstone Planning Group LLC increased its stake in Bank of New York Mellon by 100.0% in the first quarter, now owning 392 shares worth around $30,000 after acquiring an additional 196 shares. Similarly, Orion Capital Management LLC and Hoey Investments Inc. each purchased new stakes in the bank, valued at $32,000 during the first quarter and second quarter, respectively.
Notably, Golden State Wealth Management LLC raised its holdings by 226.4% during the first quarter, now holding 408 shares valued at $34,000. Overall, 85.31% of Bank of New York Mellon’s stock is owned by hedge funds and other institutional investors.
Analyst Ratings and Stock Performance
Bank of New York Mellon has recently received several ratings upgrades from analysts. Keefe, Bruyette & Woods raised their target price for the stock from $120.00 to $124.00 on October 17. Similarly, Evercore ISI increased its target from $91.00 to $110.00 on September 30. Barclays also revised its target price upward from $104.00 to $120.00 on the same date.
As of October 20, TD Cowen raised its target price from $130.00 to $133.00. The Goldman Sachs Group adjusted its target from $106.00 to $120.00 on October 6. Current ratings include one “Strong Buy,” nine “Buy,” and six “Hold” ratings among analysts, leading to an average rating of “Moderate Buy” with a price target of $111.29.
The stock opened at $108.59 on Wednesday. Bank of New York Mellon maintains a debt-to-equity ratio of 0.83, a current ratio of 0.70, and a quick ratio of 0.72. Its market capitalization stands at $76.58 billion with a P/E ratio of 15.67 and a PEG ratio of 0.98.
Recent Earnings and Dividends
In its latest quarterly earnings report released on March 26, Bank of New York Mellon reported earnings of $1.30 per share, with total revenues of $4.38 billion. The bank achieved a return on equity of 14.03% and a net margin of 12.86%. Analysts forecast that the company will post earnings per share of 6.96 for the current fiscal year.
Additionally, the bank announced a quarterly dividend of $0.53 per share, scheduled for payment on November 7. Shareholders of record on October 27 will receive this dividend, leading to an annualized dividend of $2.12 and a yield of 2.0%. The current payout ratio stands at 30.59%.
The Bank of New York Mellon Corporation offers a diverse range of financial products and services both domestically and internationally, operating through various segments including Securities Services, Market and Wealth Services, and Investment and Wealth Management.
As institutional investors continue to shape the bank’s stock landscape, the financial community will be watching closely for further developments in both investment trends and corporate performance.
