NEW YORK (TheStreet) -- Bank of New York Mellon shares closed trading up 0.2% to $39.86 on Wednesday as the bank engages in talks to settle lawsuits brought against it that accused the bank of defrauding clients in foreign exchange transactions, according to Bloomberg. The bank is in negotiations with Manhattan U.S. Attorney Preet Bharara and New York State Attorney General Eric Schneiderman over the accusations, according to Bloomberg sources. The company restated its fourth quarter earnings results last week, carving out an additional $600 million to cover litigation related expenses including expenses tied to its foreign exchange transactions. Exclusive Report: Jim Cramer's Best Stocks for 2015 Plaintiffs have accused the company of misrepresenting to clients how it determined the currency exchange rates for certain transactions. So far Bank of New York has declined comment. TheStreet Ratings team rates BANK OF NEW YORK MELLON CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate BANK OF NEW YORK MELLON CORP (BK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 12.6%. Since the same quarter one year prior, revenues slightly increased by 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 59.09% and other important driving factors, this stock has surged by 25.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 54.2% when compared to the same quarter one year prior, rising from $539.00 million to $831.00 million. The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 97.59%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.98% trails the industry average. You can view the full analysis from the report here: BK Ratings Report
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