Bank of New York Mellon Corp
Should Warren Buffett Be Adding Banking Stocks?
In a regulatory filing, Berkshire Hathaway (BRK-B) revealed that it had increased its stake in Bank of America (BAC).
Berkshire Hathaway’s Banking Holdings in Q1
Among Berkshire Hathaway’s financial holdings, JPMorgan Chase was the worst performer, while Goldman Sachs was the top performer.
How Warren Buffett’s Investment Philosophy Has Evolved
Berkshire Hathaway trimmed stakes in Apple, Wells Fargo, Southwest Airlines, United Continental, Phillips 66, and Charter Communications in the fourth quarter.
Did Buffett Miss the Bus on Apple?
Berkshire Hathaway (BRK-B) is Apple’s second-largest shareholder.
Buffett to Investors: ‘Focus on the Forest, Forget the Trees’
One of the world’s most successful investors of all times, Warren Buffett believes in investing for the long term.
Buffett’s Love for Banking Stocks Continued in Q4
Berkshire Hathaway is the largest shareholder in Wells Fargo (WFC), Bank of America (BAC), U.S. Bancorp (USB), and American Express (AXP).
Key Changes in Berkshire Hathaway’s Holdings in Q3
Looking at Berkshire Hathaway’s third-quarter 13F, the company added more Apple shares and added a new position in JPMorgan Chase.
How Wall Street Rates BlackRock and Asset Managers
Analysts gave BlackRock a price target of $613.15 on an NTM basis.
Apple’s EU Tax Dispute: What You Need to Know Now
Ireland expects to have completed collecting the disputed taxes the EU is demanding from Apple (AAPL) by the end of 3Q18.
Apple in Ireland: Looking beyond the Tax Dispute
iPhone sales accounted for as much as a quarter of Ireland’s economic growth in 2017.
How Analysts View TD Ameritrade after Fiscal 2Q18
Of the 19 analysts covering TD Ameritrade (AMTD) in April 2018, seven have recommended “strong buy,” five have recommended “buy,” six have recommended “hold,” and one has recommended “strong sell.”
ETF Inflows Rebounded despite Rising Geopolitical Concerns
The latest economic data and renewed geopolitical concerns failed to thwart ETF inflows last week.
Analyzing Wall Street’s Views on E*TRADE Financial
E*TRADE Financial Corporation (ETFC) is covered by 16 analysts in March 2018, of which nine are suggesting a “strong buy” and two have given “hold” ratings.
What’s behind the Rise in E*TRADE’s Non-Interest Expenses?
E*TRADE Financial Corporation (ETFC) incurred total non-interest expenses amounting to $1.47 billion in 2017, which implies an increase of 17% YoY (year-over-year).
E*TRADE’s Views on the New Tariffs
Since President Trump has levied tariffs on aluminum and steel imports, they might lead to a trade war if the affected countries take the same road, as China did.
E*TRADE’s Views on the Fed Meeting and Expectations
As expected, the Federal Reserve raised interest rates by 0.25% in March, marking the first increase of 2018.
What Wall Street Has to Say about Charles Schwab
The Charles Schwab Corporation (SCHW) was covered by 20 analysts in February 2018, of whom six suggested a “hold” and one recommended a “sell.”
Analyzing Charles Schwab’s Premium Valuations
The Charles Schwab Corporation’s (SCHW) price-to-book ratio stands at 3.57x on an NTM (next-12-months) basis.
What Charles Schwab Has to Say about the Economy in 2018
The Charles Schwab Corporation’s (SCHW) management reflected positive views of the overall outlook for 2018.
Charles Schwab’s New COO and Client Behavior Report
The Charles Schwab Corporation (SCHW) announced that Joseph R. Martinetto will be its new COO.
Charles Schwab Reports January 2018 Numbers
In January 2018, The Charles Schwab Corporation (SCHW) saw core net new assets of $18.7 billion.
Asset Managers to See Growth on Diversified Offerings in 1Q18
The recent fall in stocks globally is expected to put some pressure on asset managers’ (VFH) operating performances in 1Q18.
Why Wall Street Is Long on BlackRock Post-Rout
Wall Street analysts are expecting a limited upside for asset managers (VFH) as well as broader indexes in 2018.
BlackRock’s Valuations following the Decline in Global Equities
BlackRock (BLK) stock has risen 27.6% over the past six months and 39.0% over the past year.
BlackRock’s Valuations Stable amid Strong Operating Performance
BlackRock is currently trading at a forward price-to-earnings ratio of 17.6x, compared with the industry average of 18.6x.
BlackRock and Competitors Look at Strong 1Q18 Numbers
Among the major asset managers, BlackRock (BLK) is expected to post sequential and year-over-year growth in earnings per share to $6.38 in 1Q18 and $6.83 in 2Q18.
Wall Street Analysts Long on Asset Managers in 2018
Analysts gave BlackRock a price target of $614.92 on a next-12-month basis.
BlackRock Shareholder Payouts Rise amid Strong Growth
BlackRock’s (BLK) board approved a 15.0% increase in quarterly dividends to $2.88 payable in March 2018.
What’s behind Charles Schwab’s Premium Valuations?
Charles Schwab’s (SCHW) price-to-earnings ratio stood at 24.10x on an NTM (next-12-month) basis compared to its peer average of 14.37x.
What Analysts Suggest for Charles Schwab
Nine of the 20 analysts covering Charles Schwab (SCHW) in January gave the stock a “strong buy” rating, while five recommended a “hold” on SCHW.
Did Charles Schwab’s Total Expenses Rise in 2017?
Charles Schwab (SCHW) incurred professional services expenses of $429 million in 9M17 (the first nine months of 2017) compared to $372 million in 9M16, a rise of 15% mainly due to the expenses related to technology projects.
How Charles Schwab’s Expenses Trended in 2017
Charles Schwab witnessed a marginal increase in its total expenses (excluding interest) from $3.3 billion in 9M16 (or the first nine months of 2016) to $3.6 billion in 9M17.
How Does Charles Schwab’s Balance Sheet Look?
Charles Schwab (SCHW) saw a rise in total assets from $223.3 billion as of December 31, 2016, to $230.7 billion as of September 30, 2017.
How Did Charles Schwab’s November Metrics Look?
As of November 2017, Charles Schwab had total client assets of $3.3 trillion.
How Tax Reform Could Impact Charles Schwab
Charles Schwab (SCHW) is expected to release its 4Q17 earnings on January 17, 2018. Wall Street analysts have given a low estimate of $0.39 and a high estimate of $0.45 on earnings per share (or EPS) for 4Q17.
Why Charles Schwab’s Net Revenues Rose
Charles Schwab’s (SCHW) total net revenues in the first nine months of 2017 stood at $6.4 billion.
How Premium Are BlackRock’s Premium Valuations Going into 2018?
BlackRock’s (BLK) outperformance, estimate beats, and new assets have helped the company command premium valuations.
Wall Street Rates BlackRock High in the Industry for 2018
Asset managers (VFH) have had “buy” to “hold” ratings in recent months since equities are expected to be upbeat in the next few quarters.
State Street’s Earnings Rose, Beating Estimates
In 3Q17, State Street (STT) posted EPS (earnings per share) that was higher than Wall Street analysts’ estimates.
State Street’s Valuation after 3Q17 Results
State Street (STT) has a one-year forward PE (price-to-earnings) ratio of 14.72x, representing a discounted valuation.
Breakdown of State Street’s Assets under Management
State Street (STT) has a total AUM (assets under management) of $2.7 trillion in 3Q17. Of the total AUM, equity contributed $1.6 trillion.
Why Investors Continue to Pay a Premium for BlackRock
BlackRock commands a premium over industry peers and alternative asset managers due to its strong performance across the regions and offerings.
Why Does Buffett Still Have Faith in Wells Fargo after the Scandals?
In his recent CNBC interview, billionaire investor Warren Buffett stated that he still believes in Wells Fargo and CEO Timothy J. Sloan.
Why BlackRock Is Trading at a Premium in 2017
Translating into pricing BlackRock (BLK) commands a premium valuation in the asset management industry, mainly due to its stable and strong inflow, diversified offerings, global asset allocation, fund growth, and consistent earnings. The company is now trading at a forward PE (price-to-earnings) ratio of 17.9x, compared with the industry average of 14.5x. Overall, BlackRock’s valuation has improved in recent weeks, with […]
Behind State Street’s Investment Management Division
State Street Corporation (STT) has an enterprise value of $52.8 billion.
T. Rowe’s Dividends to Increase Marginally in 2017
In 2017, T. Rowe Price Group (TROW) is expected to witness a marginal rise of 4.2% in its dividend distribution as compared to 2016.
Inside T. Rowe’s Occupancy and Other Operating Expenses
T. Rowe Price Group’s (TROW) facility and occupancy costs stood at $83.1 million in 2Q17, which includes depreciation costs of $36.3 million.
Insights on Analysts’ ‘Hold’ Ratings for State Street
State Street (STT) is currently covered by 21 analysts. Five of them have rated the stock a “strong buy,” and three have given it a “buy” rating.
State Street’s Dividend to Rise in 2017
State Street (STT) is expected to declare a dividend of $1.62 per share in 2017, which is 15.7% more than its 2016 dividend.
Inside State Street’s Net Interest Income and Employee Benefits
In 2Q17, State Street (STT) posted NII (net interest income) of $617.0 million, which was a substantial rise of 13.0% on a YoY (year-over-year) basis.
State Street Beat Earnings Estimate, Missed Revenue Estimate
State Street (STT) posted EPS (earnings per share) of $1.67 in 2Q17, thus beating analysts’ estimate of $1.57. That’s a 14.0% rise on a YoY basis.
Why BlackRock Continues to Command Premium Valuations
BlackRock (BLK) continues to command a premium valuation on stable and strong inflows, the performance of funds, global asset allocation, and consistent earnings.
Earnings Growth: How BlackRock Compares to Other Managers
Asset managers (XLF) are expected to see marginal or no growth in 3Q17 and 2H17, mainly due to lower expected returns from markets that could translate into lower performance income…
BlackRock’s Retail Division Adds Assets
BlackRock’s (BLK) retail business has seen a rebound in inflows over the past couple of quarters after investors consistently withdrew from active offerings in equities and deployed more money to ETFs and index funds.
Why BlackRock Is Bracing for Subdued Equity Performance
On March 31, 2017, BlackRock was managing a record $3.1 trillion—about 56% of the company’s total AUM—in its Institutional Clients division.
BlackRock on the Street: Analyst Ratings, Macro Concerns
So far in June 2017, ten of the 14 analysts covering BlackRock (BLK) have rated the stock as a “strong buy” or “buy.” Four analysts have rated it as “hold.”
Where BlackRock’s Valuations Are Rising Today
BlackRock continues to command a premium valuation among other traditional and alternative asset managers—thanks to its diversified offerings.
BlackRock Bests Estimates on Earnings, Misses on Revenue in 1Q17
BlackRock (BLK), the world’s largest asset manager, reported its 1Q17 earnings on April 19, 2017. The company beat Wall Street analysts’ adjusted EPS (earnings per share) estimate of $4.89.
BlackRock Institutional Prefers Fixed-Income Offerings
BlackRock (BLK) managed ~$2.9 trillion for its institutional clients on December 31, 2016. These assets made up 57% of the company’s total managed assets.
What the World’s Biggest Asset Manager Earned in 1Q17
BlackRock (BLK), the world’s largest asset manager, is expected to post earnings per share (or EPS) of $4.88 for 1Q17 on April 13, 2017, a rise of 14.8% year-over-year.
Wells Fargo Failed the Federal Reserve’s Living Will Test
In another blow to Wells Fargo’s (WFC) plans, the Federal Reserve stated on December 13, 2016, that the embattled bank failed the living will test and would face penalties.
State Street’s Leverage Steady amid Volatile Operating Performance
State Street’s (STT) leverage has remained at similar levels over the past few quarters.
Will BNY Mellon’s Valuations Gap Narrow?
BNY Mellon (BK) trades at a 24% premium to its book value and 18x its one-year forward earnings.
Can BNY Mellon Dividends Please Investors?
In 4Q16, BNY Mellon (BK) repurchased 18.4 million shares for $848 million.
BNY Mellon’s Capital Ratios and Liquidity Position Improved in 4Q16
Bank of New York Mellon’s (BK) Tier 1 Capital ratio was 14.5% compared to 13.6% recorded at the end of its previous quarter.
BNY Mellon Improves Its Profitability despite Tough Global Environment
During 4Q16, BNY Mellon (BK) posted return on equity (or ROE) of 9.3% compared to 7.1% during 4Q15.
Which Segment Drove BNY Mellon’s 4Q16 Earnings?
In 4Q16, Bank of New York Mellon’s (BK) revenues from its Investment Services business rose 5% to $2.7 billion.
BlackRock’s Secret to Strong Margins in 4Q16
In its 4Q16 earnings release, BlackRock reported a 1% rise in total revenues YoY. Notably, its operating expenses fell 4% YoY to ~$1.7 billion in 4Q16.
Will BNY Mellon’s 12% Dividend Hike Please Investors?
BNY Mellon (BK) hiked its dividend to $0.19 after the Federal Reserve approved its capital plans and cleared its stress test results.
What Do Analysts Forecast for BNY Mellon’s 4Q16 Earnings?
According to consensus data accumulated by Reuters, net revenues for BNY Mellon are expected to be $3.8 billion in 4Q16, 3.4% higher year-over-year.
BlackRock iShares Expected to Garner Assets on Equities in 4Q16
BlackRock’s iShares have shown growth for the past few years on diversified, global offerings backed by low costs and technology. It manages ~$1.3 trillion.
PNC’s Payout Ratio Is Expected to Be High in 2017
PNC Financial Services (PNC) is expanding its balance sheet on the back of new assets and expanding offerings.
BlackRock Is Benefiting PNC Financial’s Non-Interest Income
PNC Financial’s non-interest income for 3Q16 rose $167 billion compared to 3Q15. Sequentially, the company’s income rose $8 million.
BlackRock Trends on Higher Operating Margins on Expense Cuts
BlackRock (BLK) has had to deal with lower pricing for its offerings as competitors offer ETFs and other passive products at attractive prices.
Institutional Segment Continues to Be Major Segment for BlackRock
BlackRock (BLK) manages total assets of $2.9 trillion as of September 30, 2016, for its institutional investors.
Why Analysts Think Goldman Sachs’s Valuations Are Attractive
Goldman Sachs trades 5% above its book value and 18 times its one-year forward earnings.
State Street Balance Sheet Is Strong on Acquisitions, Assets
State Street’s ability to expand operations by deploying generating operating flows and expense management should help improve its balance sheet.
State Street Has Higher Fee Revenues on ETFs, GE Asset Management
State Street (STT) reported total fee revenues of $2.1 billion in 3Q16, a rise of 2.0% compared to the previous quarter. Servicing fees rose 5.2%.
State Street Is Targeting Higher Margins through Beacon
In line with the State Street Beacon program, expenses continued to fall YoY. State Street is targeting savings of $550.0 million over the next four to five years.
State Street Adds Assets through ETFs, PIMCO, GE Asset Management
In 3Q16, State Street (STT) saw a rise to $29.2 trillion in assets under custody and administration. That’s a 5.0% rise compared to $27.8 trillion in 2Q16.
State Street Stock Rises on New Assets, Performance
State Street (STT) stock has risen 10.0% over the past quarter. That came on the back of two quarters of improved operating performance.
T. Rowe Stock Rose, New Assets Are a Concern
T. Rowe (TROW) stock rose 8% over the past three months mainly due to a strong operating performance in 3Q16.
Broad Market Appreciation Helped T. Rowe’s Assets in 3Q16
T. Rowe Price (TROW) posted growth of $36.3 billion in its AUM (assets under management) in 3Q16, totaling $812.9 billion.
T. Rowe Price’s Managed Assets Rose Due to Market Appreciation
T. Rowe’s mutual funds’ net cash flows after client transfers accounted for net outflows of $0.2 billion from the stocks and blended asset funds in 3Q16.
Moat Investing: Identifying the Winners
Morningstar’s research and investment philosophy is based on the concept of an economic moat (MOAT).
BNY Mellon’s Third Quarter Earnings Top Estimates
Bank of New York Mellon (BK) reported 3Q earnings on October 20. The company’s adjusted earnings of $0.90 per share beat consensus estimates of $0.81 and were 22% higher year-over-year.
BlackRock’s Retail Saw Outflows on US and Europe Equities in 3Q16
BlackRock’s (BLK) Retail business had assets under management of $554 billion as of September 30, 2016, which made up 12% of the company’s total AUM.
BlackRock’s iShares Regains Number One Spot on New Assets in 3Q16
BlackRock’s (BLK) iShares saw strong rebound in 3Q16, with the division regaining its number one position for new assets in and outside of the US.
BlackRock Garners More than $5 Trillion in AUM, Beating Estimates
BlackRock, the world’s largest asset manager, beat Wall Street analysts’ adjusted EPS estimates of $4.98, posting EPS of $5.14 for 3Q16.
How Is BNY Mellon Controlling Expenses?
The Bank of New York Mellon’s (BK) cost-cutting program has been effective, and activist investors are appreciating the measures it’s taking to improve profitability.
What Do Analysts Forecast for BNY Mellon’s 3Q Earnings?
According to Bloomberg, net revenues for BNY Mellon are expected to be $3.9 billion in 3Q16. That’s 1.0% higher year-over-year and 2.0% higher than 2Q16.
More Retail Clients for BlackRock’s Business in 3Q16
Retail contributed almost 12% of BlackRock’s total managed assets with funds of $544 billion as of June 30. It accounts for almost one-third of the total base fees.
Can 3Q16 Boost Goldman Sachs’s Suppressed Valuations?
Goldman Sachs (GS) trades at a 10% discount to its book value and 11.8x its one-year forward earnings.
BlackRock Expects Its Funds to See Retail Contribution in 3Q16
BlackRock is expected to see a rise in retail participation in the current quarter as equities and other asset classes have risen on improving fundamentals.
T. Rowe Price’s Mutual Fund Performance among the Industry’s Best
In 2Q16, T. Rowe Price Group’s (TROW) funds performance, led by market appreciation, contributed to its assets under management growth of $12 billion.
Uncertain Global Markets Not Deterring AMG from Adding Assets
Affiliated Managers Group (AMG) has been consistently adding assets in spite of highly uncertain global markets.
Affiliated Managers Is Doing This to Stabilize Revenues
Affiliated Managers Group (AMG) is expected to post revenues of $567 million in the September quarter. That’s higher than the June quarter but a 7.5% decline YoY.
Blackstone Valuations and Stock Prices Rebounded
The alternative asset management industry’s operating performance fell in 2015 due to falling equities and asset classes.
AMG’s Valuation Gap Widened on Weak Performance in 2Q
Affiliated Managers Group’s discount widened due to weak performance. Earnings for other asset managers have started to pick up at a decent pace.
AMG Generated Solid Results in 2Q despite Market Volatility
On August 1, Affiliated Managers Group (AMG) reported net 2Q16 profits of $107.4 million—compared to $128.7 million for 2Q15.