The Bank of New York Mellon Corporation (NYSE: BK) stock fell -1.49% on Friday to $43.06 against a previous-day closing price of $43.71. With 1.93 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.19 million shares. During the session, the Asset Management company that operates in wider Financial sector, reached to the highest price of $43.92 whereas the lowest price it dropped to was $43.03. The 52-week range on BK shows that it touched its highest point at $64.63 and its lowest point at $39.78 during that stretch. It currently has a 1-year price target of $48.40. With its current market cap of 34.33 billion, BK has annualized dividend of $1.48 while the current yield stands at 3.44%. Beta for the stock currently stands at 1.11.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BK was up-trending over the past week, with a rise of 0.07%, but this was up by 3.56% over a month. Three-month performance dropped to -3.88% while six-month performance fell -29.47%. The stock lost -16.37% in the past year, while it has lost -25.86% so far this year. A look at the trailing 12-month EPS for BK yields 3.93 with Next year EPS estimates of 4.75. For the next quarter, that number is 1.09. This implies an EPS growth rate of 8.30% for this year and 13.92% for next year. EPS is expected to grow by 6.53% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.70%.
Float and Shares Shorts:
At present, 809.47 million BK shares are outstanding with a float of 806.69 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.25 million, which was 0.90% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas P. Gibbons as the firm’s CEO & Director, Mr. Robin Antony Vince serves as its Pres.
Through their ownership of 85.08% of BK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.62% of BK, in contrast to 40.79% held by mutual funds. Shares owned by individuals account for 15.53%. As the largest shareholder in BK with 8.96% of the stake, Berkshire Hathaway, Inc. holds 72,357,453 shares worth 72,357,453. A second-largest stockholder of BK, The Vanguard Group, Inc., holds 62,100,808 shares, controlling over 7.69% of the firm’s shares. Dodge & Cox is the third largest shareholder in BK, holding 57,891,107 shares or 7.17% stake. With a 4.57% stake in BK, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 36,927,624 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.66% of BK stock, is the second-largest Mutual Fund holder. It holds 21,445,358 shares valued at 894.49 million. Vanguard 500 Index Fund holds 2.04% of the stake in BK, owning 16,447,662 shares worth 686.03 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BK since 19 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BK analysts setting a high price target of $61.00 and a low target of $42.00, the average target price over the next 12 months is $48.28. Based on these targets, BK could surge 41.66% to reach the target high and fall by -2.46% to reach the target low. Reaching the average price target will result in a growth of 12.12% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BK will report FY 2022 earnings on 01/19/2023. Analysts have provided yearly estimates in a range of $4.38 being high and $4.02 being low. For BK, this leads to a yearly average estimate of $4.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Bank of New York Mellon Corporation surprised analysts by -$0.09 when it reported $1.03 EPS against a consensus estimate of $1.12. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $1.18 and the low estimate is $1.02. The average estimate for the next quarter is thus $1.10.
Summary of Insider Activity:
Insiders traded BK stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 4,339 shares were bought while 44,135 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 51 over the past year. The total number of shares bought during that period was 623,028 while 337,696 shares were sold.