Point72 Asset Management L.P. acquired a new position in Bank of America Co. (NYSE:BAC) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 964,152 shares of the financial services provider’s stock, valued at approximately $37,303,000.
A number of other hedge funds and other institutional investors also recently modified their holdings of BAC. Geode Capital Management LLC grew its position in shares of Bank of America by 1.6% in the 1st quarter. Geode Capital Management LLC now owns 116,039,367 shares of the financial services provider’s stock worth $4,476,618,000 after buying an additional 1,841,155 shares during the period. Norges Bank purchased a new stake in shares of Bank of America in the 4th quarter worth about $2,901,869,000. Bank of New York Mellon Corp grew its position in shares of Bank of America by 7.3% in the 1st quarter. Bank of New York Mellon Corp now owns 71,304,753 shares of the financial services provider’s stock worth $2,758,781,000 after buying an additional 4,822,558 shares during the period. Ameriprise Financial Inc. grew its position in shares of Bank of America by 15.1% in the 1st quarter. Ameriprise Financial Inc. now owns 62,923,315 shares of the financial services provider’s stock worth $2,434,589,000 after buying an additional 8,271,853 shares during the period. Finally, Morgan Stanley grew its position in shares of Bank of America by 5.4% in the 1st quarter. Morgan Stanley now owns 62,800,608 shares of the financial services provider’s stock worth $2,429,754,000 after buying an additional 3,240,323 shares during the period. Institutional investors and hedge funds own 70.17% of the company’s stock.
A number of analysts have recently weighed in on BAC shares. Barclays upped their target price on shares of Bank of America from $40.00 to $45.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 7th. Keefe, Bruyette & Woods began coverage on shares of Bank of America in a research report on Wednesday, July 7th. They issued a “market perform” rating and a $43.87 target price on the stock. Royal Bank of Canada set a $37.69 price objective on shares of Bank of America and gave the company a “buy” rating in a research report on Wednesday. Zacks Investment Research raised shares of Bank of America from a “hold” rating to a “buy” rating and set a $42.00 price objective on the stock in a research report on Friday, June 18th. Finally, Evercore ISI reissued a “buy” rating and set a $43.00 price objective on shares of Bank of America in a research report on Friday, July 2nd. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and fifteen have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $39.83.
Bank of America (NYSE:BAC) last issued its quarterly earnings data on Wednesday, July 14th. The financial services provider reported $1.03 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.77 by $0.26. Bank of America had a net margin of 30.82% and a return on equity of 11.08%. The firm had revenue of $21.50 billion for the quarter, compared to analysts’ expectations of $21.77 billion. During the same quarter in the prior year, the business earned $0.37 EPS. The business’s quarterly revenue was down 3.6% on a year-over-year basis. As a group, equities research analysts forecast that Bank of America Co. will post 3.3 EPS for the current fiscal year.
Bank of America announced that its board has approved a share repurchase program on Thursday, April 15th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the financial services provider to reacquire up to 7.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 24th. Stockholders of record on Friday, September 3rd will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 2.20%. This is a boost from Bank of America’s previous quarterly dividend of $0.18. Bank of America’s dividend payout ratio is 38.50%.
About Bank of America
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans.
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