Being so large, we would not expect insiders to own a large proportion of the stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. Let’s take a closer look to see what the different types of shareholders can tell us about Bank of New York Mellon.
- The Corporate Trust business delivers various issuer and investor services such as trustee, fiduciary, escrow, and other financial services.
- We are continually transforming to make our clients’ businesses faster, smarter and more efficient.
- Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 9.9% of shares outstanding.
- The firm’s net interest revenue is driven by loan and deposit volumes and interest rate spreads.
- Helping accomplished individuals and families sustain and build long-term wealth through our proven Active Wealth approach.
- Meanwhile, the second and third largest shareholders, hold 8.6% and 7.5%, of the shares outstanding, respectively.
General Public Ownership
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Researching institutional ownership is a good way to gauge and filter a stock’s expected performance.
Wealth Management
So they generally do consider buying larger companies that are included in the relevant benchmark index. As of the end of 2022, BNY Mellon partnered with companies from over 50 countries, making it one of the largest providers of depositary receipt services worldwide. And our employees regularly devote their time and expertise to community-focused work. We’re proud of the trust our clients place in us, and we’re relentlessly focused on helping them achieve their objectives. Our most recent data indicates that insiders own less than 1% of The Bank of New York Mellon Corporation.
Garden City
The Bank of New York Mellon Corporation, doing business as BNY, is an American banking and financial services corporation headquartered in New York City. The bank offers investment management, investment services, and wealth management services.[2] BNY was formed from the merger of The Bank of New York and the Mellon Financial Corporation in 2007. Following the merger, it adopted the brand name The Bank of New York Mellon, which was later simplified to BNY Mellon and later again to BNY. BNY Mellon’s core business encompasses a diverse range of financial services.
Personal data breach
With a dedicated business presence on six continents and in 35 countries, BNY Mellon delivers global scale at the local level. It’s always worth thinking about the different groups who own shares in a company. But to understand Bank of New York Mellon better, we need to consider many other factors. A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. Institutional investors commonly compare their own returns to the returns of a commonly followed index.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Bank of New York Mellon. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Additionally, the Investment Management arm provides passive products and cash management services. Notable majority-owned investment firms include ARX, Dreyfus, Insight Investment, Mellon, Newton Investment Management, and Walter Scott.
Bank of New York Mellon’s Securities Services department provides a range of essential financial services to institutional clients. These services primarily revolve around the custody and administration of securities. BNY Mellon acts as a custodian, safeguarding clients’ financial assets such as stocks and bonds while also offering asset servicing, clearing and settlement, fund accounting, and securities lending. BNY Mellon competes with other major financial institutions and banks, including JPMorgan Chase, State Street Corporation, Citigroup, and several others. Our clients range from governments and unions to corporations, individual investors and other financial services firms.
Our teams make the lifecycle work on a unique, global scale, helping clients capture opportunity and transform. This business line specializes in clearing and settling equity and fixed-income transactions on a global scale. BNY Mellon is a primary provider of U.S. government securities clearance and provides clearance services for non-U.S. Pershing offers execution, clearing, custody, and comprehensive business and technology solutions. It plays a vital role in delivering operational support to broker-dealers, wealth managers, and registered investment advisors on a global scale. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature.
The firm’s net interest revenue is driven by loan and deposit volumes and interest rate spreads. Expenses in this segment are primarily related to staff and distribution and servicing expenses. We can see that Bank of New York Mellon does have institutional investors; and they hold a good portion of the company’s stock.
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. BNY Mellon Investment Management is a leading global asset manager consisting of several specialist investment firms and a global distribution network. Each of these firms has its own unique culture, investment philosophy, and proprietary investment process.
The Issuer Services business encompasses Corporate Trust and Depositary Receipts. The Corporate Trust business delivers various issuer and investor services such as trustee, fiduciary, escrow, and other financial services. The Depositary Receipts business facilitates global investing by offering services that enable cross-border trading, clearing, settlement, and ownership enhancement. We make money work for our clients across the entire financial lifecycle, from creating assets to selling them, offering technology, services and expertise across our platforms.
There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. BNY sits in a unique position at the center of the world’s financial system. We touch nearly 20% of the world’s investable assets, giving clients unsurpassed insight into the financial system and how it is changing.
This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. You can see Bank of New York Mellon’s historic earnings and revenue below, but keep in mind there’s always more to the story.
For 240 years, we have been at the forefront of financial innovation and change. We were founded by Alexander Hamilton, who established the U.S. banking system, and Andrew Mellon, a pioneer of industry. Driven by this spirit of leadership, our teams create solutions for businesses, communities and people everywhere while earning client trust through our resilience and innovation.
Every client has unique challenges and we help put their money to work. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 9.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.6% and 7.5%, of the shares outstanding, respectively. The performance of the Investment and Wealth Management segment is influenced by factors such as assets under management levels, net asset flows, market conditions, and fee structures.
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