We're buying the dip in one of our newest stocks
Nothing has changed in this bank's positive operating-leverage story.
Investment Move in Bank of New York
The investment firm Jim Cramer’s Charitable Trust is increasing its stake in Bank of New York (BNY) by purchasing 80 shares at approximately $153 each. This acquisition brings the total holdings to 320 shares, representing about 1.25% of the trust's portfolio, up from 0.95%. This move follows a 5.5% decline in BNY shares over the past two sessions.
Context of the Purchase
The decision to buy more shares of BNY comes after a decline in the financial sector, particularly following comments from Bank of America CEO Brian Moynihan at the Barclays Global Financial Services Conference. Moynihan lowered expectations for investment banking and markets revenue, causing Bank of America shares to drop about 5% on Monday. This decline had a ripple effect, impacting other financial stocks.
Bny's Performance and Outlook
BNY's Chief Financial Officer, Dermot McDonogh, also spoke at the conference but did not issue a negative outlook like Bank of America. McDonogh noted that third-quarter revenue was slightly slower compared to the strong second quarter but remained within the guidance provided by management. He highlighted that capital markets volumes have strengthened and "kicked back into September," which is a positive indicator given BNY's fee-heavy revenue structure, with about 70% of its revenue coming from fees.
Expense and Revenue Growth
McDonogh reiterated the bank's full-year expense growth outlook of 6%-7%. Some of the higher expenses are tied to stronger revenues, which supports BNY's guidance for 400 basis points of positive operating leverage in 2026. This is based on a total revenue growth projection of 10% to 11% year over year, with expense growth expected to be 6% to 7% year over year. The bank remains committed to delivering positive operating leverage in 2026 and is working on its 2027 budgeting plans.
Investment Strategy
The recent decline in BNY shares, influenced by Bank of America's lowered expectations, is seen as an opportunity to acquire more shares. According to Jim Cramer's strategy, the weakness in BNY's stock price, without a change in its positive operating-leverage story, makes it an attractive buy. As a part of the CNBC Investing Club, subscribers receive trade alerts before Jim Cramer makes a trade, with specific waiting periods before executing trades in his charitable trust's portfolio.
Conclusion
The investment move by Jim Cramer’s Charitable Trust in BNY reflects a strategic decision to capitalize on short-term market fluctuations and sector-specific challenges. By increasing its stake in BNY, the trust is signaling confidence in the bank's long-term growth prospects and its ability to maintain positive operating leverage. This decision aligns with the trust's investment strategy of taking advantage of market opportunities presented by temporary setbacks in specific stocks or sectors.
Source: CNBC · 2026-09-15