It’s another quarterly earnings beat for Bank of New York Mellon Corp (NYSE:BK), as this morning the company reported the fourth quarter results. While Bank of New York Mellon Corp (NYSE:BK) slightly missed top line estimates of $3.77 billion, reporting $3.73 billion, the EPS number was the real story. While the consensus had the company earning 64 cents per share this last quarter, they reported 68 cents per share.
“Our results in 2015 demonstrated that our strategic plan has positioned us well to perform in all operating environments. Even with geopolitical instability, emerging market weakness, higher regulatory compliance requirements and low interest rates, we executed on our strategic priorities and focused on what was within our control. For full-year 2015, our earnings per share increased by 19 percent on an adjusted basis as we generated more than 400 basis points of positive operating leverage and achieved a return on tangible common equity of 21 percent. Importantly, we are on track to achieve our three-year goals,” Gerald L. Hassell, chairman and chief executive officer, said.
This report was yet another positive surprise within the banking sector. Numerous other major banks including Bank of America and Goldman Sachs have also beat estimates this prior quarter. The stock decreased 1.31% or $0.47 during the last trading session, hitting $35.47. Approximately shares traded hands. BK shares have declined 17.89% since June 16, 2015 and are currently downtrending. It has underperformed the S&P500 by 9.03%.
From a total of 9 analysts covering The Bank Of New York Mellon Corporation (NYSE:BK) stock, 6 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $56 while the lowest target price is $41. The mean of all analyst targets is $47.18 which is 33.01% above today’s ($35.47) stock price. The Bank Of New York Mellon Corporation was the topic of 18 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on January 8 with a “Buy” rating. Bernstein upgraded shares to a”Outperform” rating and a $56 target share price in their report from an August 5. Bank of America upgraded BK stock in a recent report from September 17 to a “Buy” rating. Finally, Argus Research maintained the stock with a “Buy” rating in a report they issued on a July 21.
The institutional sentiment decreased to 0.86 in Q2 2015. It’s down 0.11, from 0.97 in 2015Q2. The ratio fall, as 92 funds sold all their Bank of New York Mellon Corp shares they owned while 301 reduced their positions. 67 funds bought stakes while 271 increased their total positions. Institutions now own 904.73 million shares which is 2.09% more than the previous share count of 886.21 million in 2015Q2.
Marcato Capital Management Lp holds 36.2% of its total portfolio in Bank of New York Mellon Corp, equating to 18.43 million shares. Horseman Capital Management Ltd owns 1.22 million shares representing 12.11% of their total US portfolio. Moreover, Trian Fund Management L.P. has 10.1% of their total portfolio invested in the company, equating to 30.23 million shares. The Delaware-based Cortland Advisers Llc has a total of 7.31% of their portfolio invested in the stock. Minneapolis Portfolio Management Group Llc, a Minnesota-based fund reported 1.03 million shares owned.
The Bank of New York Mellon Corporation is a well-known provider of financial services and products in domestic and international markets. The company has a market cap of $39.27 billion. Through its two principal businesses, Investment Management and Investment Services, it serves institutions, firms and high net worth individuals. It has 15.2 P/E ratio. For institutions and firms, it provides investment management, trust and custody, foreign exchange, fund administration, global collateral services, securities lending, depositary receipts, corporate trust, global payment/cash management, banking services and clearing services.