Traders Purchase Large Volume of BNY Put Options (NYSE:BK)

BNY (NYSE:BK) was the recipient of unusually large options trading on Tuesday. Stock investors bought 15,757 put options on the stock. This is an increase of approximately 663% compared to the typical volume of 2,065 put options.

BNY Trading Up 1.9%

BK opened at $137.97 on Wednesday. The company’s 50 day moving average price is $120.68 and its two-hundred day moving average price is $116.41. The firm has a market capitalization of $94.96 billion, a price-to-earnings ratio of 17.10, a PEG ratio of 1.00 and a beta of 1.06. BNY has a fifty-two week low of $75.35 and a fifty-two week high of $139.15. The company has a debt-to-equity ratio of 0.82, a current ratio of 0.75 and a quick ratio of 0.71.

BNY (NYSE:BK) last issued its quarterly earnings results on Thursday, April 16th. The bank reported $2.25 EPS for the quarter, topping analysts’ consensus estimates of $1.94 by $0.31. BNY had a net margin of 14.60% and a return on equity of 15.29%. The company had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.14 billion. During the same quarter in the previous year, the business earned $1.58 earnings per share. BNY’s revenue was up 12.9% compared to the same quarter last year. As a group, research analysts predict that BNY will post 8.52 earnings per share for the current year.

BNY Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Stockholders of record on Monday, April 27th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Monday, April 27th. BNY’s dividend payout ratio (DPR) is 26.27%.

Insider Activity at BNY

In related news, EVP Alejandro Perez sold 12,504 shares of the company’s stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $137.01, for a total transaction of $1,713,173.04. Following the completion of the transaction, the executive vice president directly owned 62,613 shares in the company, valued at $8,578,607.13. This represents a 16.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Shannon Marie Hobbs sold 297 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $137.05, for a total transaction of $40,703.85. Following the completion of the transaction, the vice president directly owned 15,206 shares of the company’s stock, valued at approximately $2,083,982.30. The trade was a 1.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 48,091 shares of company stock worth $6,568,423 over the last three months. 0.17% of the stock is owned by insiders.

Hedge Funds Weigh In On BNY

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. lifted its position in shares of BNY by 17.9% in the 4th quarter. Rockefeller Capital Management L.P. now owns 141,899 shares of the bank’s stock worth $16,473,000 after purchasing an additional 21,506 shares during the period. World Investment Advisors raised its stake in BNY by 14.4% during the fourth quarter. World Investment Advisors now owns 72,285 shares of the bank’s stock worth $8,391,000 after buying an additional 9,105 shares during the last quarter. Advisortrust Partners LLC bought a new position in BNY during the fourth quarter worth $207,000. Corient Private Wealth LLC lifted its holdings in BNY by 8.1% in the fourth quarter. Corient Private Wealth LLC now owns 257,048 shares of the bank’s stock valued at $29,822,000 after buying an additional 19,341 shares during the period. Finally, Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in BNY in the fourth quarter valued at $84,000. 85.31% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting BNY

Here are the key news stories impacting BNY this week:

• Positive Sentiment: Analysts raised price targets on BK (two reported raises to $150 and $148), signaling improved forward expectations that can support further upside. BNY Price Target Raised to $150.00 BNY Price Target Raised to $148.00
• Positive Sentiment: Coverage highlighting BK’s Q1 beat, AI-related business gains and a $10B buyback supports investor optimism on earnings growth and capital return. Assessing Bank of New York Mellon Corporation (BK) Valuation After Q1 Beat AI Gains And $10b Buyback
• Negative Sentiment: Multiple insiders sold shares on April 17 (EVP Alejandro Perez 12,504 shares; EVP J. Kevin McCarthy 30,000 shares; Kurtis R. Kurimsky 5,290 shares; VP Shannon Hobbs 297 shares). The size and concentration of these disposals (some large % ownership drops) may be read as a negative signal by the market. Regulatory filing links: Alejandro Perez SEC Filing J. Kevin McCarthy SEC Filing Kurtis Kurimsky SEC Filing Shannon Hobbs SEC Filing
• Negative Sentiment: Unusual options flow: traders bought 15,757 put contracts (a 663% jump vs. typical daily put volume). This spike in bearish/options-hedging activity increases near-term downside risk or signals growing hedging interest. (Options volume reported April 21)

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. New Street Research set a $143.00 price target on shares of BNY in a report on Wednesday, January 14th. Wells Fargo & Company raised their price objective on BNY from $119.00 to $122.00 and gave the company an “equal weight” rating in a report on Wednesday, January 14th. Barclays boosted their price objective on BNY from $143.00 to $149.00 and gave the stock an “overweight” rating in a research report on Friday. JPMorgan Chase & Co. upped their target price on BNY from $128.50 to $130.50 and gave the stock an “overweight” rating in a report on Tuesday, April 7th. Finally, Weiss Ratings upgraded BNY from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Wednesday, March 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, BNY has an average rating of “Moderate Buy” and a consensus price target of $137.35.

About BNY

BNY, formerly known as BNY Mellon, is a global financial services company headquartered in New York City. Formed in 2007 through the merger of the Bank of New York and Mellon Financial Corporation, BNY traces its roots back to 1784, making it one of the oldest banking institutions in the United States. It was also the first company listed on the New York Stock Exchange.

BNY operates at the center of the world’s capital markets, partnering with clients to help them operate more efficiently and accelerate growth.