Ally Financial Inc. Has $6.26 Million Holdings in Bank of America Corporation $BAC

Key Points

• Ally Financial Inc. increased its stake in Bank of America by 226.1% in Q1, owning 150,000 shares worth approximately $6.26 million, making Bank of America its 29th largest holding.
• Bank of America recently announced a $40 billion share buyback program and increased its quarterly dividend from $0.26 to $0.28 per share, reflecting confidence in its stock's value.
• Analysts have mixed views on Bank of America's stock, with target price forecasts ranging from $49.00 to $54.00, and an overall average rating of "Moderate Buy."

Ally Financial Inc. grew its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 226.1% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 150,000 shares of the financial services provider's stock after buying an additional 104,000 shares during the quarter. Bank of America accounts for about 0.7% of Ally Financial Inc.'s investment portfolio, making the stock its 29th biggest holding. Ally Financial Inc.'s holdings in Bank of America were worth $6,260,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of BAC. Vega Investment Solutions acquired a new stake in Bank of America in the 4th quarter valued at approximately $30,000. Marshall & Sterling Wealth Advisors Inc. acquired a new position in Bank of America during the fourth quarter worth $31,000. Spurstone Advisory Services LLC acquired a new position in Bank of America during the fourth quarter worth $34,000. Wood Tarver Financial Group LLC acquired a new position in Bank of America during the fourth quarter worth $38,000. Finally, Mascagni Wealth Management Inc. acquired a new position in Bank of America during the fourth quarter worth $40,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Insider Buying and Selling

In related news, insider James P. Demare sold 148,391 shares of the firm'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 transaction, the insider directly owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on BAC shares. Morgan Stanley increased their target price on shares of Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. Hsbc Global Res cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Royal Bank Of Canada set a $53.00 target price on shares of Bank of America and gave the stock an "outperform" rating in a report on Monday, June 30th. Wall Street Zen lowered shares of Bank of America from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Finally, Citigroup upped their price target on shares of Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. Seventeen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on 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 Stock Performance

NYSE BAC opened at $49.4850 on Friday. The firm has a 50-day moving average of $47.06 and a 200-day moving average of $43.83. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The stock has a market cap of $366.53 billion, a PE ratio of 14.47, a P/E/G ratio of 1.92 and a beta of 1.31. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $49.66.

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

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

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. This is a positive change from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Friday, September 5th. Bank of America's payout ratio is 30.41%.

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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