Is The Bank of New York Mellon Corporation (BK) Running Out of Gas?

The Bank of New York Mellon Corporation (BK) shares saw a recent bid of $47.10 and 5.54M shares have exchanged hands in the recent trading session, yielding a 0.64% gain over the past week. The stock price decreased -0.65% or $0.31 versus $47.41 at the end of the prior session. This change led market cap to move at $48.95B, putting the price -4.93% below the 52-week high and 31.86% above the 52-week low. The company’s stock has a normal trading capacity of 4.72M shares while the relative volume is 1.17.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $51.84 while $57.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $5.16 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $48.00, which would be an increase of about 2% of its current value. The mean target of $52.00 should be compared with the price when the stock was languishing around $35.72 a share. And it remains to be seen which target price BK can achieve without sacrificing much as the company is holding a 11.43% gain for the past twelve months.

By historical standards, The Bank of New York Mellon Corporation remains a cheap stock. The company’s current price-earnings ratio amounts to 14.62 times earnings, below the average P/E ratio of 2,900.26 times earnings. For now, The Bank of New York Mellon Corporation is the toast of Wall Street as its ABR stands at 2.60 with 3 out of 20 analysts rating the stock a buy. Over the short term, some market observers may have noticed that The Bank of New York Mellon Corporation has a 1.12% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. The Bank of New York Mellon Corporation has far performed well this year, with the share price down -0.59% since January. Over the past 2 quarters, the stock is down -0.78%, compared with a fall of nearly -0.08% for 3 months and about 0.08% for the past 30 days.

Last time, the company shocked Wall Street by reporting EPS of $0.81, smashing the consensus of $0.80 per share. Revenue for the quarter also killed consensus, coming in at $3.83B, compared to the consensus of 3.83B. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $0.84. The company is expected to report EPS as high as $0.89 and as low as $0.81 per share. Similarly, full-year EPS forecasts have ranged between $3.45 and $3.61. The mean EPS estimate is $3.51. On the other side, sales forecasts for the current quarter are $3.89B. The stock is expected to report revenue as high as $3.98B and as low as $3.86B per share. Similarly, full-year sales forecasts have ranged between $15.59B and $16.04B. The mean revenue estimate is $15.74B.

Over the last 5 years, The Bank of New York Mellon Corporation has averaged a 9.20% YoY EPS growth rate and a -0.10% revenue growth rate. Analysts are expecting EPS growth rates to be at 16.30% this quarter and EPS estimate for next year reflect 11.15% growth rate.

Sell-side analysts also have something to say about this company. Keefe Bruyette had a markedly different take on 20/01/2017, proposing that The Bank of New York Mellon Corporation is now considered Mkt Perform versus prior Outperform rating. JP Morgan had a markedly different take on 06/01/2017, proposing that The Bank of New York Mellon Corporation is now considered Neutral versus prior Overweight rating. Barclays analysts stated on 03/01/2017 that they maintained their Overweight rating.

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