Stock Update (NYSE:BK): BNY Mellon to pay $3 million after Massachusetts probe of funds glitch

[Reuters] – Massachusetts Secretary of the Commonwealth William Galvin said the New York trust bank had subcontracted the calculations to a third party and lacked a backup plan when the sub-contractor was unable to calculate net asset values for the funds. The lack of the plan “represents a departure from high standards of commercial honor,” the settlement agreement states, according to Galvin’s office. The glitch unsettled broad parts of the fund industry last summer and highlighted how reliant BNY Mellon remained on a patchwork of technology platforms. Read more on this. The Bank of New York Mellon Corporation (BK) , with a current value of $41.03B, started the session at $38.20. Today, shares have traded between $37.86 and $38.56 per share with a trailing 52-week range being $32.20 to $45.45. BK shares are currently priced at 12.63x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 10.39x earnings multiple for the same period. The company pays shareholders $0.68 per share in dividend income per year, for a current yield of 1.82%. Consensus earnings for the current quarter by the 18 sell-side analysts covering the stock is an estimate of $0.68 per share, which would be $0.01 better than the year-ago quarter and a $0.03 sequential decrease. The full-year EPS estimate is $3.02, which would be a $0.17 better than last year. The quarterly earnings estimate is predicated on a consensus revenue forecast of $3.74 Billion. If reported, that would be a 0.53% decrease over the year-ago quarter. Recently, JP Morgan upgraded BK from Neutral to Overweight (Jan 7, 2016). Previously, BofA/Merrill upgraded BK from Neutral to Buy. When considering if the stock is under or overvalued, the average price target is $42.82, which is 12.09% above where the stock opened this morning. See more in (NYSE:BK) Similar Articles: Stock Update: The Bank of New York Mellon Corporation (NYSE:BK) – With Rising Allocations to Alternatives, BNY Mellon White Paper Examines the Increasing Challenges and Potential False Sense of Security around Enterprise Risk Data Assumptions Company Update: The Bank of New York Mellon Corporation (NYSE:BK) – BNY Mellon Launches New U.S. Government Securities Clearing Platform Powered by Innovative Technology Capabilities Company Update (NYSE:BK): BNY Mellon Appointed Trustee and Back-Up Servicer for Hannon Armstrong’s $118.6 Million Sustainable Yield℠ Bond