Trade-Ideas LLC identified Bank of New York Mellon ( BK) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Bank of New York Mellon as such a stock due to the following factors:

  • BK has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.35 mentions/day.
  • BK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $212.3 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on BK:

The Bank of New York Mellon Corporation, an investment company, provides financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. It operates through two segments, Investment Management and Investment Services. The stock currently has a dividend yield of 1.9%. BK has a PE ratio of 13. Currently there are 7 analysts that rate Bank of New York Mellon a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Bank of New York Mellon has been 6.9 million shares per day over the past 30 days. Bank of New York Mellon has a market cap of $39.3 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.33 and a short float of 1.4% with 2.84 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bank of New York Mellon as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • BK's revenue growth has slightly outpaced the industry average of 2.5%. Since the same quarter one year prior, revenues slightly increased by 0.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BANK OF NEW YORK MELLON CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, BANK OF NEW YORK MELLON CORP increased its bottom line by earning $2.71 versus $2.16 in the prior year. This year, the market expects an improvement in earnings ($3.02 versus $2.71).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, BANK OF NEW YORK MELLON CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • BK has underperformed the S&P 500 Index, declining 7.31% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has significantly decreased to $142.00 million or 88.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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