ABC Arbitrage SA Makes New $1.71 Million Investment in Bank of America Corporation $BAC

Key Points

• ABC Arbitrage SA opened a new position in Bank of America in the fourth quarter, buying 31,048 shares worth about $1.71 million.
• Institutional interest remains strong, with 70.71% of Bank of America shares now held by institutional investors and hedge funds, even as some insiders recently sold stock.
• Analyst sentiment is still favorable: recent price target increases lifted the consensus target to $61.06, and the stock currently carries a Moderate Buy rating.

ABC Arbitrage SA purchased a new stake in Bank of America Corporation (NYSE:BAC - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor purchased 31,048 shares of the financial services provider's stock, valued at approximately $1,708,000.

A number of other large investors have also recently added to or reduced their stakes in BAC. Meridian Wealth Management LLC boosted its position in Bank of America by 54.6% in the 3rd quarter. Meridian Wealth Management LLC now owns 58,308 shares of the financial services provider's stock valued at $3,008,000 after buying an additional 20,591 shares during the period. Lockheed Martin Investment Management Co. increased its position in shares of Bank of America by 15.9% during the third quarter. Lockheed Martin Investment Management Co. now owns 629,610 shares of the financial services provider's stock worth $32,482,000 after acquiring an additional 86,290 shares during the period. AdvisorShares Investments LLC acquired a new stake in shares of Bank of America in the third quarter valued at $482,000. Mufg Securities Americas Inc. raised its stake in shares of Bank of America by 26.6% in the third quarter. Mufg Securities Americas Inc. now owns 198,918 shares of the financial services provider's stock valued at $10,262,000 after acquiring an additional 41,809 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. AG boosted its holdings in Bank of America by 11.2% in the third quarter. B. Metzler seel. Sohn & Co. AG now owns 677,919 shares of the financial services provider's stock valued at $34,974,000 after purchasing an additional 68,093 shares during the period. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Bank of America

In other news, insider Geoffrey S. Greener sold 126,756 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the transaction, the insider directly owned 1,373,397 shares of the company's stock, valued at $72,803,774.97. This represents a 8.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Thomas M. Scrivener sold 50,000 shares of the company's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $49.82, for a total value of $2,491,000.00. Following the completion of the sale, the insider directly owned 227,973 shares in the company, valued at $11,357,614.86. This trade represents a 17.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 354,588 shares of company stock valued at $17,814,296 over the last 90 days. Company insiders own 0.27% of the company's stock.

Analysts Set New Price Targets

BAC has been the topic of several recent research reports. Argus upped their price target on Bank of America from $59.00 to $62.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. UBS Group lifted their price objective on Bank of America from $62.00 to $63.00 in a research note on Wednesday, May 6th. Royal Bank Of Canada reissued an "outperform" rating and set a $59.00 price objective on shares of Bank of America in a research report on Thursday, April 16th. Keefe, Bruyette & Woods increased their price objective on shares of Bank of America from $63.00 to $64.00 and gave the company an "outperform" rating in a research report on Thursday, April 16th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Bank of America in a report on Friday, April 24th. Twenty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $61.06.

Trending Headlines about Bank of America

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

• Neutral Sentiment: Bank of America’s own fair value estimate was nudged slightly higher to $62.98 from $62.72, but the move was described as a minor adjustment rather than a major change in outlook. How The Bank Of America (BAC) Investment Story Is Shifting As Analyst Views Rebalance
• Neutral Sentiment: Street commentary remains split, with some analysts raising targets modestly while others cut estimates, signaling uncertainty around BAC’s valuation rather than a clear fundamental shock. How The Bank Of America (BAC) Investment Story Is Shifting As Analyst Views Rebalance
• Neutral Sentiment: Bank of America also settled a SEBI allegation in India related to an alleged insider-trading recordkeeping violation; while not described as a major financial penalty, it adds a small compliance overhang. BofA settles allegation of insider trading rule violation with Sebi
• Neutral Sentiment: Separately, BofA’s role in Brazilian payments firm Elo’s planned U.S. IPO is a positive sign for investment banking activity, but it is not likely to move the stock on its own. Brazil’s Mastercard Rival Elo Taps Bank of America, Other Banks for US IPO

Bank of America Price Performance

Shares of NYSE:BAC opened at $50.53 on Tuesday. Bank of America Corporation has a one year low of $42.35 and a one year high of $57.55. The stock has a market capitalization of $358.56 billion, a price-to-earnings ratio of 12.51, a PEG ratio of 0.87 and a beta of 1.21. The company has a 50-day simple moving average of $50.39 and a 200-day simple moving average of $52.49. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.81 and a current ratio of 0.81.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.11. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The firm had revenue of $30.27 billion for the quarter, compared to analysts' expectations of $29.72 billion. During the same quarter in the previous year, the firm posted $0.90 EPS. The firm's revenue for the quarter was up 10.7% on a year-over-year basis. On average, analysts predict that Bank of America Corporation will post 4.46 EPS for the current year.

Bank of America Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 5th will be paid a $0.28 dividend. The ex-dividend date is Friday, June 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. Bank of America's payout ratio is 27.72%.

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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