AA Financial Advisors LLC Buys New Position in Bank of America Corporation $BAC

Key Points

• AA Financial Advisors LLC purchased 8,020 shares of Bank of America Corporation valued at approximately $380,000 in the second quarter, marking a significant new investment by the firm.
• Bank of America announced an increase in its quarterly dividend to $0.28 per share, with a yield of 2.1%, reflecting a positive adjustment from its previous dividend of $0.26.
• The company initiated a $40 billion stock buyback program, indicating confidence from the board in the undervalue of its shares.

AA Financial Advisors LLC acquired a new stake in shares of Bank of America Corporation (NYSE:BAC) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 8,020 shares of the financial services provider's stock, valued at approximately $380,000.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Bank of New York Mellon Corp raised its stake in shares of Bank of America by 1.3% during the first quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock valued at $2,521,218,000 after purchasing an additional 803,570 shares during the period. Deutsche Bank AG lifted its stake in Bank of America by 45.1% during the first quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock worth $2,007,718,000 after purchasing an additional 14,960,086 shares during the last quarter. Amundi lifted its stake in Bank of America by 3.7% during the first quarter. Amundi now owns 39,233,293 shares of the financial services provider's stock worth $1,637,205,000 after purchasing an additional 1,413,313 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Bank of America by 0.6% during the first quarter. Dimensional Fund Advisors LP now owns 31,956,699 shares of the financial services provider's stock worth $1,333,351,000 after purchasing an additional 188,638 shares during the last quarter. Finally, National Pension Service lifted its stake in Bank of America by 2.4% during the first quarter. National Pension Service now owns 12,970,274 shares of the financial services provider's stock worth $541,250,000 after purchasing an additional 300,944 shares during the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Trading Up 0.3%

Shares of NYSE BAC opened at $52.27 on Friday. Bank of America Corporation has a one year low of $33.06 and a one year high of $52.66. The firm has a market capitalization of $387.16 billion, a PE ratio of 15.28, a PEG ratio of 2.02 and a beta of 1.34. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The business has a 50-day moving average price of $48.55 and a two-hundred day moving average price of $44.52.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. During the same period last year, the company posted $0.83 EPS. The business's quarterly revenue was up 4.3% compared to the same quarter last year. As a group, analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.1%. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is presently 32.75%.

Bank of America declared that its board has authorized a stock repurchase program on Wednesday, July 23rd that permits the company to buyback $40.00 billion in shares. This buyback authorization permits the financial services provider to repurchase up to 11.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

BAC has been the topic of a number of recent research reports. Phillip Securities cut Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, July 25th. HSBC cut Bank of America from a "buy" rating to a "hold" rating and raised their target price for the company from $47.00 to $51.00 in a research note on Monday, July 7th. Wells Fargo & Company lifted their target price on Bank of America from $56.00 to $60.00 and gave the stock an "overweight" rating in a report on Tuesday. Oppenheimer lifted their price target on Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Finally, Truist Financial lifted their price target on Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Sixteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $50.82.

Insider Buying and Selling

In other Bank of America news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $45.57, for a total value 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. The trade was a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.30% of the stock is currently owned by corporate insiders.

About Bank of America

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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