Palisade Capital Management LP Takes Position in Bank of America Corporation $BAC

Palisade Capital Management LP bought a new stake in Bank of America Corporation (NYSE:BAC) in the second quarter, HoldingsChannel reports. The fund bought 29,408 shares of the financial services provider’s stock, valued at approximately $1,532,000.

A number of other hedge funds have also recently added to or reduced their stakes in BAC. Norges Bank purchased a new stake in Bank of America in the fourth quarter valued at approximately $4,774,210,000. Legal & General Group Plc purchased a new position in shares of Bank of America during the second quarter worth approximately $2,571,060,000. Capital International Investors purchased a new position in shares of Bank of America during the fourth quarter worth approximately $2,357,461,000. Deutsche Bank AG acquired a new position in shares of Bank of America in the 2nd quarter valued at $2,359,172,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Bank of America in the 2nd quarter valued at $2,313,953,000. Hedge funds and other institutional investors own 70.71% of the company’s stock.

Bank of America Stock Down 1.7%

Shares of Bank of America stock opened at $61.17 on Friday. The company has a market cap of $427.73 billion, a P/E ratio of 14.03, a PEG ratio of 0.99 and a beta of 1.17. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. Bank of America Corporation has a one year low of $46.12 and a one year high of $65.22. The firm has a fifty day moving average of $61.06 and a two-hundred day moving average of $54.86.

Bank of America (NYSE:BAC) last issued its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $30.78 billion. During the same quarter in the previous year, the firm earned $0.89 earnings per share. The business’s quarterly revenue was up 19.6% compared to the same quarter last year. On average, analysts forecast that Bank of America Corporation will post 4.68 earnings per share for the current year.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, September 4th. This is a positive change from Bank of America’s previous quarterly dividend of $0.28. Bank of America’s payout ratio is presently 25.69%.

Wall Street Analysts Forecast Growth

BAC has been the subject of a number of recent research reports. UBS Group increased their price target on shares of Bank of America from $68.00 to $70.00 and gave the stock a “buy” rating in a research note on Monday, August 3rd. Barclays lifted their price objective on shares of Bank of America from $71.00 to $72.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Evercore set a $63.00 target price on shares of Bank of America and gave the company an “outperform” rating in a report on Monday, July 6th. Morgan Stanley increased their target price on shares of Bank of America from $61.00 to $67.00 and gave the stock an “overweight” rating in a research note on Monday, June 29th. Finally, Keefe, Bruyette & Woods raised their price target on Bank of America from $67.00 to $70.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. Twenty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Bank of America currently has a consensus rating of “Moderate Buy” and a consensus target price of $64.08.

Bank of America News Roundup

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America’s AI initiatives, including branch expansion and automation, may improve operating efficiency and customer service over time. However, continued expense growth could limit the near-term benefit. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Positive Sentiment: BofA Securities continues to demonstrate a constructive view on major growth and technology markets, reiterating Buy ratings on Alibaba, Nvidia, Prudential and Elbit Systems. The activity supports the visibility of BAC’s investment-banking and research franchise, although it has limited direct impact on earnings. Alibaba Raises $10 Billion for AI — Why BofA Is Looking Past the Dilution
• Neutral Sentiment: Bank of America issued several senior unsecured notes in August, with maturities extending from 2029 to 2046. The issuance supports liquidity and funding flexibility, but adds to interest obligations and offers no immediate change to the company’s earnings outlook. What Bank of America (BAC)’s New Debt Issuance and AI Credit Research Push Means For Shareholders
• Negative Sentiment: The SEC reportedly subpoenaed Bank of America, Goldman Sachs, JPMorgan and Citigroup regarding margin lending to hedge fund Situational Awareness, which suffered a 67% drawdown during an AI-stock sell-off. The investigation raises potential legal, compliance and credit-loss risks, particularly if leveraged clients cannot meet obligations. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: Persistent operating-cost pressure remains a concern for BAC investors. While AI and branch expansion could boost productivity, elevated expenses may weigh on margins and reduce the benefit of the bank’s recent revenue growth.

About Bank of America

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.