/Bank%20Of%20New%20York%20Mellon%20Corp%20location%20sign-by%20JHVEPhoto%20via%20Shutterstock.jpg)
With a market cap of $43.9 billion, The Bank of New York Mellon Corporation (BK) is a leading global financial services company based in New York. The bank provides a wide range of investment management and wealth services to institutions, corporations, and individuals worldwide.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and BNY Mellon fits this criterion perfectly. BNY Mellon is renowned for its longstanding history as the oldest bank in the United States, its global leadership in custodian banking and securities services, and its pivotal role as a systemically important financial institution.
Despite a 2.6% decline from its 52-week high of $60.87 reached on June 10, the custody banking giant's shares have increased 4.1% over the past three months, outperforming the marginal decline seen in the broader Dow Jones Industrials Average ($DOWI) during the same period.
Longer term, BK is up 13.9% on a YTD basis, overshadowing the DOWI's 3.9% gains. Moreover, shares of BNY Mellon have surged 35.2% over the past 52 weeks, compared to DOWI’s 15.4% return over the same time frame.
To confirm the bullish price trend, BK stock has been trading above both its 50-day and 200-day moving averages since November last year.
BNY Mellon's outperformance can be credited to its robust revenue growth fueled by higher net interest income and fee revenues despite challenges like increased expenses affecting net income.
Following a nearly 2% decline on Apr. 16 after its Q1 earnings report, which reflected lower interest income and reduced foreign exchange profitability, the stock rebounded in the subsequent trading session. Investors reacted positively to stronger-than-expected earnings, supported by increased fees driven by rising asset values and growth in assets under custody.
However, its rival, JPMorgan Chase & Co. (JPM), has outperformed BK with a 42.3% increase over the past 52 weeks and a 16.4% gain on a YTD basis.
Despite the stock's impressive gains, analysts are cautiously optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 17 analysts covering the stock, and the mean price target of $63.67 suggests a premium of just 8.5% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
