Allstate Corp Cuts Holdings in Bank of America Corporation $BAC

Key Points

• Allstate Corp has reduced its holdings in Bank of America by 15.1%, owning 176,200 shares valued at approximately $7.35 million after selling 31,439 shares in the first quarter.
• Bank of America recently announced a new share repurchase program allowing for up to $40 billion in buybacks, which indicates the board believes the stock is undervalued.
• The company has increased its quarterly dividend from $0.26 to $0.28, representing a 2.3% yield, with the dividend set to be paid on September 26 to shareholders of record as of September 5.

Allstate Corp decreased its position in Bank of America Corporation (NYSE:BAC - Free Report) by 15.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 176,200 shares of the financial services provider's stock after selling 31,439 shares during the quarter. Allstate Corp's holdings in Bank of America were worth $7,353,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in BAC. Vega Investment Solutions purchased a new position in shares of Bank of America in the 4th quarter valued at $30,000. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in shares of Bank of America in the fourth quarter valued at about $31,000. Spurstone Advisory Services LLC acquired a new position in Bank of America during the 4th quarter worth approximately $34,000. Wood Tarver Financial Group LLC purchased a new position in Bank of America in the fourth quarter worth $38,000. Finally, Mascagni Wealth Management Inc. purchased a new position in shares of Bank of America in the 4th quarter valued at about $40,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the transaction, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. The trade was a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.30% of the stock is owned by insiders.

Bank of America Stock Down 0.2%

Shares of Bank of America stock opened at $48.2350 on Friday. The stock has a market capitalization of $357.27 billion, a price-to-earnings ratio of 14.10, a PEG ratio of 1.88 and a beta of 1.31. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $49.31. 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's 50 day simple moving average is $46.95 and its 200-day simple moving average is $43.84.

Bank of America (NYSE:BAC - Get Free Report) last issued 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. The firm had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm's revenue was up 4.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.83 EPS. Equities research analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current year.

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

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a $0.28 dividend. The ex-dividend date is Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.3%. This is a boost from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is 32.75%.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Cowen initiated coverage on Bank of America in a research report on Wednesday, May 14th. They set a "buy" rating on the stock. Morgan Stanley raised their price objective on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. TD Cowen initiated coverage on shares of Bank of America in a research report on Thursday, May 15th. They set a "buy" rating and a $53.00 price target for the company. Hsbc Global Res lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. Finally, Oppenheimer upped their price target on shares of Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Seventeen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Company Profile

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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