JPMorgan Chase upgraded the stock to "buy" from "neutral"
Bank of New York Mellon Corp (NYSE:BK) is on the rise following an upgrade from JPMorgan Chase to "buy" from "neutral." The analyst cited a strong return outlook and limited credit risk, sending BK up 3.1% to trade at $40.89 at last look. The note is part of JPMorgan Chase's pre-earnings sweep of the bank sector, with Citibank (C) and M&T Bank (MTB) also highlighted. Bank of New York Mellon will report earnings before the open on Monday, Oct. 17.
BK has managed to find its footing near the $38 level, which served as a ceiling for much of the security's 2020 pandemic-era rout. The stock will have to overcome pressure at almost every long- and short-term moving average if it wants to distance itself from this floor, though, especially the 120-day moving average which has kept a lid on shares since February. Year-to-date, BK has lost 31.7%.
There's plenty of room for bull notes to give the stock a much-needed boost. Coming into today, just three of the 12 in coverage called BK a "strong buy," compared to nine "hold" ratings.
Pessimism among options players could also unwind, as the security sports a 10-day put/call volume ratio of 1.20 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 77% of readings from the past year. In other words, there's been a healthier-than-usual appetite for puts of late.