213,507 Shares in Bank of America Corporation $BAC Purchased by Redwood Grove Capital LLC

Key Points

• Redwood Grove Capital initiated a Bank of America stake of 213,507 shares worth approximately $12.2 million, making BAC about 3.1% of its portfolio. Institutional investors and hedge funds collectively own 70.71% of the stock.
• Bank of America exceeded quarterly expectations, reporting $1.21 in earnings per share and $31.56 billion in revenue, with revenue up 19.6% year over year. The bank also raised its quarterly dividend from $0.28 to $0.32 per share, implying a 2.1% yield.
• Analysts maintain a generally positive outlook, with 21 Buy ratings and six Holds producing a consensus “Moderate Buy” rating and an average price target of $64.08. Potential risks include operating-cost pressure and an SEC inquiry into margin lending tied to a hedge fund’s losses.

Redwood Grove Capital LLC bought a new stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 213,507 shares of the financial services provider's stock, valued at approximately $12,166,000. Bank of America accounts for approximately 3.1% of Redwood Grove Capital LLC's portfolio, making the stock its 18th biggest holding.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Turim 21 Investimentos Ltda. acquired a new position in 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 approximately $26,000. Wiser Advisor Group LLC acquired a new stake in shares of Bank of America in the 3rd quarter valued at approximately $27,000. CrossGen Wealth LLC bought a new stake in shares of Bank of America during the 4th quarter valued at approximately $30,000. Finally, Joseph Group Capital Management bought a new stake in shares of Bank of America during the 4th quarter valued at approximately $32,000. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Bank of America Price Performance

BAC stock opened at $61.17 on Friday. The company has a market capitalization 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 fifty day moving average price of $61.06 and a 200-day moving average price of $54.86. 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 52-week low of $46.12 and a 52-week high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.08. The company had revenue of $31.56 billion for the quarter, compared to analysts' expectations 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 revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.89 earnings per share. As a group, equities analysts expect that Bank of America Corporation will post 4.68 EPS for the current year.

Bank of America Increases Dividend

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

Analysts Set New Price Targets

A number of analysts have weighed in on BAC shares. Royal Bank Of Canada boosted their target price 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. Oppenheimer downgraded Bank of America from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Weiss Ratings restated a "buy (b)" rating on shares of Bank of America in a research report on Tuesday, July 21st. Jefferies Financial Group reaffirmed a "buy" rating and issued a $75.00 target price on shares of Bank of America in a report on Tuesday, July 14th. Finally, Citigroup increased their target price on Bank of America from $62.00 to $66.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. Twenty-one analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $64.08.

Trending Headlines about Bank of America

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.

Bank of America Company 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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