AlphaQuest LLC Increases Stake in Bank of America Corporation $BAC

Key Points

• AlphaQuest LLC significantly increased its stake in Bank of America by 808,400% during the first quarter, owning 8,085 shares valued at $337,000 as per its latest SEC filing.
• Bank of America recently announced a quarterly dividend hike to $0.28 per share, representing an annualized yield of 2.2%, and its payout ratio stands at 30.41%.
• The company also authorized a $40 billion share repurchase program, suggesting the board's belief that the stock is undervalued.

AlphaQuest LLC lifted its stake in Bank of America Corporation (NYSE:BAC) by 808,400.0% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 8,085 shares of the financial services provider's stock after purchasing an additional 8,084 shares during the quarter. AlphaQuest LLC's holdings in Bank of America were worth $337,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Vega Investment Solutions purchased a new position in Bank of America during the 4th quarter worth approximately $30,000. Spurstone Advisory Services LLC purchased 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 during the 4th quarter worth approximately $38,000. Mascagni Wealth Management Inc. purchased a new position in Bank of America during the 4th quarter worth approximately $40,000. Finally, Cloud Capital Management LLC purchased a new position in Bank of America during the 1st quarter worth approximately $40,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Price Performance

Bank of America stock opened at $50.43 on Thursday. The company's fifty day moving average price is $47.39 and its 200 day moving average price is $43.91. Bank of America Corporation has a 1 year low of $33.06 and a 1 year high of $50.63. The stock has a market capitalization of $373.50 billion, a P/E ratio of 14.74, a P/E/G ratio of 1.95 and a beta of 1.31. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80.

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

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is 30.41%.

Bank of America declared that its Board of Directors has authorized a share repurchase plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on BAC shares. Morgan Stanley raised their price target on shares of Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a research report on Monday, June 23rd. TD Cowen started 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. Citigroup raised 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. Baird R W cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, Wall Street Zen cut shares of Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Seventeen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $50.13.

Insiders Place Their Bets

In other Bank of America news, insider James P. Demare sold 148,391 shares of the firm'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 in the company, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Bank of America 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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