100,000 Shares in Bank of America Corporation $BAC Bought by Ally Financial Inc.

Key Points

• Ally Financial acquired 100,000 Bank of America shares during the second quarter, valued at approximately $5.7 million and representing about 0.7% of Ally’s portfolio. Institutional investors collectively own 70.71% of BAC.
• Bank of America reported quarterly earnings of $1.21 per share, exceeding the $1.13 analyst consensus, while revenue rose 19.6% year over year to $31.56 billion.
• The company raised its quarterly dividend from $0.28 to $0.32 per share, implying a $1.28 annualized payout and a 2.1% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $64.08.

Ally Financial Inc. purchased a new stake in Bank of America Corporation (NYSE:BAC) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 100,000 shares of the financial services provider's stock, valued at approximately $5,698,000. Bank of America comprises approximately 0.7% of Ally Financial Inc.'s portfolio, making the stock its 29th largest holding.

Several other large investors also recently bought and sold shares of the stock. Turim 21 Investimentos Ltda. acquired a new stake in shares of Bank of America during the second quarter worth about $25,000. Abound Financial LLC acquired a new stake in shares of Bank of America in the 4th quarter valued at about $26,000. Wiser Advisor Group LLC acquired a new stake in shares of Bank of America in the 3rd quarter valued at about $27,000. CrossGen Wealth LLC purchased a new position in Bank of America during the 4th quarter worth approximately $30,000. Finally, Joseph Group Capital Management purchased a new position in Bank of America during the 4th quarter worth approximately $32,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Price Performance

Bank of America stock opened at $62.26 on Thursday. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The business has a 50 day simple moving average of $60.96 and a 200-day simple moving average of $54.83. Bank of America Corporation has a 12 month low of $46.12 and a 12 month high of $65.22. The stock has a market capitalization of $435.37 billion, a PE ratio of 14.28, a price-to-earnings-growth ratio of 1.00 and a beta of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.13 by $0.08. The firm had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. Bank of America's quarterly revenue was up 19.6% on a year-over-year basis. During the same period last year, the firm posted $0.89 EPS. Equities analysts predict that Bank of America Corporation will post 4.68 earnings per share for the current year.

Bank of America Increases Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on BAC. Truist Financial boosted their price objective on Bank of America from $64.00 to $65.00 and gave the company a "buy" rating in a research note on Wednesday, July 15th. Oppenheimer lowered shares of Bank of America from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. UBS Group lifted their target price on shares of Bank of America from $68.00 to $70.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Weiss Ratings reiterated a "buy (b)" rating on shares of Bank of America in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada increased their price target on shares of Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Twenty-one research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $64.08.

Bank of America News Summary

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

• Positive Sentiment: Bank of America’s approximately $40 billion share-repurchase authorization could retire as much as 11% of outstanding shares, potentially supporting earnings per share and providing a valuation floor. The buyback is particularly notable following the company’s recent earnings beat and 19.6% year-over-year revenue growth. Bank of America stock information
• Positive Sentiment: Bank of America analysts continue to influence investor views on artificial intelligence, semiconductors and global markets. Positive calls on Nvidia and SK Hynix reinforce the bank’s research franchise and could support investment-banking and trading activity, although these reports do not directly change BAC’s fundamentals. BofA analyst Nvidia outlook
• Neutral Sentiment: The bank issued several senior unsecured medium-term notes in August, including bonds maturing from 2029 through 2046. The issuance adds funding and liquidity but also increases interest expense and leverage, making the net shareholder impact dependent on how the proceeds are used. Bank of America debt issuance and AI research
• Negative Sentiment: SEC subpoenas involving major prime brokers, including Bank of America, create a regulatory overhang. The investigation focuses on leverage and risk controls tied to a heavily leveraged hedge fund; while immediate solvency risk appears limited, tighter margin rules could reduce trading activity and raise compliance costs. SEC subpoena and banking-sector liquidity analysis
• Negative Sentiment: Bank of America expects to spend at least $250 million annually on GLP-1 weight-loss drugs for employees. Management views the benefit as worthwhile, but the expense could pressure operating costs and margins. Bank of America employee GLP-1 spending

Bank of America Profile

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.

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