Amundi Acquires 1,413,313 Shares of Bank of America Corporation $BAC

Key Points

• Amundi increased its stake in Bank of America by 3.7%, acquiring an additional 1,413,313 shares in the first quarter, now owning a total of 39,233,293 shares.
• Bank of America announced a $40.00 billion share repurchase plan, allowing it to buy back up to 11.1% of its shares, indicating the board's belief that the stock may be undervalued.
• The company recently increased its quarterly dividend from $0.26 to $0.28, representing a 2.2% yield, which highlights a positive change in its financial performance.

Amundi grew its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 3.7% in the first quarter, according to its most recent filing with the SEC. The fund owned 39,233,293 shares of the financial services provider's stock after acquiring an additional 1,413,313 shares during the period. Bank of America comprises about 0.6% of Amundi's portfolio, making the stock its 24th largest holding. Amundi owned 0.52% of Bank of America worth $1,637,205,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently modified their holdings of the company. Continuum Advisory LLC boosted its holdings in shares of Bank of America by 1.4% in the 4th quarter. Continuum Advisory LLC now owns 16,707 shares of the financial services provider's stock worth $734,000 after buying an additional 237 shares during the last quarter. Menard Financial Group LLC lifted its holdings in Bank of America by 1.2% during the fourth quarter. Menard Financial Group LLC now owns 20,620 shares of the financial services provider's stock valued at $906,000 after purchasing an additional 240 shares during the last quarter. Maia Wealth LLC lifted its holdings in Bank of America by 1.4% during the first quarter. Maia Wealth LLC now owns 17,334 shares of the financial services provider's stock valued at $723,000 after purchasing an additional 240 shares during the last quarter. Northern Financial Advisors Inc lifted its holdings in Bank of America by 1.8% during the first quarter. Northern Financial Advisors Inc now owns 14,383 shares of the financial services provider's stock valued at $600,000 after purchasing an additional 252 shares during the last quarter. Finally, Bank of Jackson Hole Trust lifted its holdings in Bank of America by 1.4% during the first quarter. Bank of Jackson Hole Trust now owns 18,053 shares of the financial services provider's stock valued at $832,000 after purchasing an additional 257 shares during the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the transaction, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.30% of the company's stock.

Bank of America Price Performance

Shares of BAC stock traded down $0.93 during trading on Friday, hitting $49.69. The company had a trading volume of 40,059,616 shares, compared to its average volume of 33,925,288. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The stock's 50-day moving average is $47.95 and its two-hundred day moving average is $44.07. The stock has a market capitalization of $368.07 billion, a price-to-earnings ratio of 14.53, a price-to-earnings-growth ratio of 1.93 and a beta of 1.34. Bank of America Corporation has a 52 week low of $33.06 and a 52 week high of $50.92.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.03. The company had revenue of ($22,273.00) million for 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 revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.83 earnings per share. As a group, analysts predict that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America declared that its Board of Directors has approved a share repurchase plan 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 purchase up to 11.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Bank of America Increases Dividend

The business 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. This represents a $1.12 annualized dividend and a dividend yield of 2.3%. This is a positive change from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is currently 32.75%.

Analyst Ratings Changes

Several research firms have commented on BAC. Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price objective on shares of Bank of America in a report on Friday, June 27th. TD Cowen assumed coverage on Bank of America in a research report on Thursday, May 15th. They set a "buy" rating and a $53.00 price target on the stock. Phillip Securities cut Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Citigroup upped their price target on Bank of America from $50.00 to $54.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. Finally, Baird R W cut Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 27th. Sixteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Bank of America presently has an average rating of "Moderate Buy" and an average target price of $50.39.

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.