Bank of New York Mellon's New (BK) Shares Rally on Capital Structure Shifts and Institutional Activity as $240M Trading Volume Ranks 441st in Market Activity

On September 4, 2025, New (BK) traded with a volume of $0.24 billion, ranking 441st in market activity. The stock closed up 0.84% amid developments in its capital structure and institutional investor activity.

The Bank of New York Mellon announced a $500 million public offering of depositary shares tied to its Series L Noncumulative Perpetual Preferred Stock. Each share represents a 1/100th interest in the preferred stock, priced at $1,000, with a liquidation preference of $100,000 per share. Dividends will accrue at 5.950% annually until December 2030, shifting to a variable rate thereafter. The offering, underwritten by multiple banks, is set to close on April 12, 2023.

Recent earnings highlighted strong performance, with $1.94 per share—exceeding estimates by $0.21—and a 9.4% year-over-year revenue increase. A dividend hike to $0.53 per share (up 12.8%) was also announced, reflecting a 2.0% yield. Institutional activity included DRW Securities LLC reducing its stake by 39.7% in Q1 2023, while other firms like Alpine Bank Wealth Management and Orion Capital Management initiated or expanded positions.

The company’s net margin of 12.27% and return on equity of 13.46% underscore its profitability. Analysts have varied outlooks, with ratings ranging from “overweight” to “hold,” and a consensus price target of $95.08. Insider transactions included a 36.29% reduction in shares by EVP J Kevin McCarthy in July 2025.

Backtesting results indicate the stock’s performance aligns with its recent earnings-driven momentum and capital-raising activities, with no material deviation from reported fundamentals.