130,689 Bank of America Corporation $BAC Shares Acquired by Avity Investment Management Inc.

Key Points

• Avity Investment Management increased its Bank of America position by 452.2% in the third quarter, acquiring 130,689 shares and bringing its holdings to 159,589 shares valued at approximately $8.7 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America reported quarterly EPS of $1.21, exceeding the $1.13 consensus estimate, while revenue rose 19.6% year over year to $31.56 billion.
• The company raised its quarterly dividend to $0.32 per share, equating to an annualized dividend of $1.28 and a 2.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $64.22, above the reported share price of $54.27.

Avity Investment Management Inc. increased its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 452.2% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 159,589 shares of the financial services provider's stock after purchasing an additional 130,689 shares during the period. Avity Investment Management Inc.'s holdings in Bank of America were worth $8,686,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of BAC. Legal & General Group Plc purchased a new position in shares of Bank of America in the second quarter valued at about $2,571,060,000. Deutsche Bank AG purchased a new stake in shares of Bank of America during the second quarter worth about $2,359,172,000. Bank of New York Mellon Corp bought a new stake in Bank of America during the 2nd quarter valued at approximately $2,313,953,000. Amundi lifted its holdings in Bank of America by 12.5% in the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock worth $2,066,274,000 after purchasing an additional 4,721,969 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in Bank of America by 1.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock worth $1,517,599,000 after purchasing an additional 561,413 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Price Performance

Shares of Bank of America stock traded up $0.66 during trading hours on Friday, reaching $54.27. The company's stock had a trading volume of 28,734,400 shares, compared to its average volume of 37,220,086. The firm has a 50 day moving average price of $60.25 and a 200-day moving average price of $56.54. 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 stock has a market cap of $379.49 billion, a P/E ratio of 12.45, a P/E/G ratio of 0.86 and a beta of 1.21. Bank of America Corporation has a one year low of $46.12 and a one year high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. During the same quarter last year, the firm earned $0.89 EPS. The firm's revenue for the quarter was up 19.6% compared to the same quarter last year. On average, analysts predict that Bank of America Corporation will post 4.61 EPS for the current year.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were issued a $0.32 dividend. This is a positive change from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date was Friday, September 4th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.4%. Bank of America's dividend payout ratio (DPR) is presently 29.36%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Bank of America in a research report on Tuesday, July 21st. Robert W. Baird lifted their target price on Bank of America from $58.00 to $62.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th. Oppenheimer downgraded Bank of America from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. Evercore set a $62.00 price target on Bank of America in a research note on Thursday, October 1st. Finally, Jefferies Financial Group cut their price target on Bank of America from $75.00 to $70.00 and set a "buy" rating for the company in a report on Thursday, September 24th. Nineteen equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $64.22.

Bank of America News Summary

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

• Positive Sentiment: Analysts expect higher net interest income and solid trading performance to support third-quarter results. A recent analysis also argues that a Federal Reserve policy shift could create additional NII upside for Bank of America. Bank of America: Fed Policy Shift Creates NII Upside
• Positive Sentiment: TD Cowen began coverage with a $60 price target, implying potential upside from recent trading levels, although it assigned a Hold rating. TD Cowen coverage of Bank of America
• Positive Sentiment: Bank of America’s continued use of artificial intelligence to personalize customer service and improve operating efficiency could provide longer-term competitive benefits. How Bank of America is using AI
• Neutral Sentiment: Wall Street’s third-quarter estimates point to a mixed report: stronger NII and trading may be offset by weaker investment-banking fees and higher credit risks. Investors are focused on whether management can maintain earnings momentum as year-over-year EPS growth is expected to slow sharply from the prior period. BAC shares ahead of Q3 earnings
• Neutral Sentiment: The appointment of Jeff Crabtree as president of the Sarasota/Manatee region is a routine leadership change with limited near-term earnings impact. Bank of America names Jeff Crabtree president
• Negative Sentiment: Bank of America agreed to a $39 million Merrill cash-sweep settlement, creating a modest legal and regulatory expense. Merrill cash sweep settlement
• Negative Sentiment: Chief equity strategist Michael Hartnett said investors are keeping substantial cash in money-market funds until sustained Fed rate cuts begin, signaling cautious risk appetite that could limit near-term support for bank shares. Investors need sustained Fed cuts

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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