Bank of America (NYSE:BAC) Hits New 1-Year High - Time to Buy?

Key Points

• Bank of America's stock (NYSE:BAC) reached a new 52-week high of $50.96, with significant trading volume of over 9.9 million shares.
• The company announced an increase in its quarterly dividend to $0.28 per share, reflecting a positive change from the previous $0.26, and initiated a $40 billion stock repurchase plan.
• Analyst ratings vary, with 16 giving a Buy rating and 5 Hold, resulting in a consensus rating of "Moderate Buy" and a target price of $50.39.

Bank of America Corporation (NYSE:BAC)'s stock price reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $50.96 and last traded at $50.74, with a volume of 9943087 shares traded. The stock had previously closed at $50.13.

Wall Street Analysts Forecast Growth

BAC has been the subject of a number of research reports. Wall Street Zen lowered Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. TD Cowen initiated coverage on Bank of America in a research note on Thursday, May 15th. They set a "buy" rating and a $53.00 price target for the company. Morgan Stanley lifted their price target on Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a report on Monday, June 23rd. Baird R W downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, Citigroup boosted their price objective on Bank of America from $50.00 to $54.00 and gave the company a "buy" rating in a report on Thursday, June 26th. Sixteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $50.39.

Bank of America Stock Performance

The stock has a market capitalization of $375.79 billion, a PE ratio of 14.83, a price-to-earnings-growth ratio of 1.95 and a beta of 1.34. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The stock has a fifty day moving average of $48.06 and a 200-day moving average of $44.19.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.03. The firm had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm's revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.83 EPS. Equities analysts anticipate that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is currently 32.75%.

Bank of America announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Bank of America

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BAC. American Trust lifted its stake in shares of Bank of America by 64.0% in the 2nd quarter. American Trust now owns 7,939 shares of the financial services provider's stock valued at $376,000 after purchasing an additional 3,099 shares during the last quarter. PVG Asset Management Corp acquired a new position in Bank of America during the 2nd quarter worth about $217,000. Evolution Wealth Management Inc. acquired a new position in Bank of America during the 2nd quarter worth about $281,000. Total Investment Management Inc. bought a new stake in Bank of America during the 2nd quarter worth about $41,000. Finally, Lavaca Capital LLC increased its stake in shares of Bank of America by 41.3% in the 2nd quarter. Lavaca Capital LLC now owns 7,874 shares of the financial services provider's stock valued at $373,000 after acquiring an additional 2,300 shares during the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Company Profile

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. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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