BNY Mellon Stock Just Hit New All-Time Highs. Where Does It Go Next?

• Bank of New York Mellon (BK) demonstrates strong technical momentum and is trading at a new all-time high.
• Shares are up more than 68% over the past year.
• BK maintains a 100% “Buy” technical opinion from Barchart.  
• Analyst sentiment is mixed, with most rating BK a “Strong Buy” or “Hold,” but some cautioning on valuation. 

Today’s Featured Stock

Valued at $88.88 billion, Bank of New York Mellon (BK), popularly known as BNY Mellon, is a financial services company that has been in business since 1784. The company’s global client base consists of financial institutions, corporations, government agencies, endowments and foundations, as well as high-net-worth individuals. BNY Mellon acts as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. BK checks those boxes. The Trend Seeker issued a new “Buy” signal on April 2. Since then, the stock has gained 6.86%.

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Barchart Technical Indicators for BNY Mellon

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

BNY Mellon scored an all-time high of $130.59 on April 14.

• BNY Mellon has a Weighted Alpha of +65.17.
• BK has a 100% “Buy” opinion from Barchart.
• The stock has gained 68.36% over the past 52 weeks.
• BNY Mellon has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $130.51 with a 50-day moving average of $119.61.
• BK has made 11 new highs and gained 12.34% over the past month.
• Relative Strength Index (RSI) is at 72.36.
• There’s a technical support level around $129.13.

Don’t Forget the Fundamentals

• $88.88 billion market capitalization.
• 16.99x price-earnings ratio.
• 1.62% dividend yield.
• Analysts project an increase in revenue of 5.76% this year and another 4.55% next year.
• Earnings are estimated to increase 12.15% this year and an additional 12.47% next year.

Analyst and Investor Sentiment on BNY Mellon

• The Wall Street analysts followed by Barchart give the stock 9 “Strong Buy,” 1 “Moderate Buy,” and 8 “Hold” opinions with price targets between $110 and $146.
• Value Line rates the stock “Above Average” with price targets between $106 and $197.
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is 29% overvalued with a fair value of $100.
• 36,200 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is only 1.31% of the float with 2.33 days to cover the float.

The Bottom Line on BNY Mellon

Bank of New York Mellon is about a solid of a bank as you can find. This is a stock to hold for the long term.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.