Andra AP fonden Has $62.41 Million Position in Bank of America Corporation $BAC

Key Points

• Andra AP fonden increased its Bank of America stake by 34.4% in the second quarter, acquiring 280,365 additional shares for a total position worth approximately $62.4 million.
• Bank of America reported quarterly EPS of $1.21, exceeding estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion.
• The company raised its quarterly dividend to $0.32 per share, equivalent to a 2.3% yield; analysts maintain a “Moderate Buy” consensus with an average price target of $64.08.

Andra AP fonden increased its stake in Bank of America Corporation (NYSE:BAC) by 34.4% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,095,383 shares of the financial services provider's stock after purchasing an additional 280,365 shares during the period. Bank of America accounts for 0.7% of Andra AP fonden's portfolio, making the stock its 26th largest holding. Andra AP fonden's holdings in Bank of America were worth $62,415,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently bought and sold shares of BAC. Bamco Inc. NY increased its holdings in shares of Bank of America by 45.4% in the second quarter. Bamco Inc. NY now owns 40,994 shares of the financial services provider's stock worth $2,336,000 after acquiring an additional 12,794 shares in the last quarter. E Fund Management Co. Ltd. acquired a new position in shares of Bank of America in the 2nd quarter valued at approximately $4,089,000. Bernicke Wealth Management Ltd. bought a new stake in Bank of America during the 2nd quarter worth approximately $2,132,000. Legal & General Group Plc increased its stake in Bank of America by 3.4% during the 4th quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider's stock worth $2,497,655,000 after purchasing an additional 1,487,809 shares in the last quarter. Finally, Renaissance Technologies LLC acquired a new stake in Bank of America during the 1st quarter worth approximately $67,507,000. 70.71% of the stock is currently owned by institutional investors.

Bank of America Stock Down 2.8%

NYSE BAC traded down $1.62 during trading hours on Tuesday, hitting $56.34. 19,479,245 shares of the company traded hands, compared to its average volume of 37,117,324. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The business's 50-day moving average is $61.98 and its 200-day moving average is $55.91. The stock has a market capitalization of $393.94 billion, a price-to-earnings ratio of 12.93, a P/E/G ratio of 0.92 and a beta of 1.15. Bank of America Corporation has a twelve month low of $46.12 and a twelve month high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The company had revenue of $31.56 billion for the quarter, compared to analysts' expectations of $30.78 billion. During the same quarter in the prior year, the business posted $0.89 EPS. The business's revenue was up 19.6% compared to the same quarter last year. Sell-side analysts anticipate that Bank of America Corporation will post 4.67 earnings per share for the current year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.32 per share. The ex-dividend date is Friday, September 4th. This represents a $1.28 annualized dividend and a dividend yield of 2.3%. This is a boost from Bank of America's previous quarterly dividend of $0.28. Bank of America's dividend payout ratio (DPR) is presently 29.36%.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Morgan Stanley reiterated an "overweight" rating on shares of Bank of America in a report on Tuesday, September 15th. JPMorgan Chase & Co. upped their price objective on Bank of America from $62.50 to $68.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Keefe, Bruyette & Woods increased their price objective on Bank of America from $67.00 to $70.00 and gave the stock an "outperform" rating in a report on Wednesday, July 15th. Argus set a $70.00 target price on Bank of America in a research note on Wednesday, July 15th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $75.00 price target on shares of Bank of America in a research note on Tuesday, July 14th. Twenty-one equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $64.08.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Higher rates could support net interest income. The Federal Reserve’s rate hike may improve lending yields and help BAC expand net interest income, although rising deposit costs could limit the benefit. Fed Rate Hike: What it Means for Wells Fargo's NII Outlook
• Positive Sentiment: AI could become a longer-term efficiency driver. Bank of America is increasing investments in artificial-intelligence ventures and expanding AI across its workforce, with potential benefits from higher productivity, lower servicing costs and new infrastructure-related revenue. Execution and spending requirements remain important risks. Will AI Become BAC's Next Major Efficiency & Growth Lever?
• Neutral Sentiment: Funding and valuation are receiving increased attention. BAC has issued new fixed-income securities and declared a preferred-stock dividend while its shares have recently weakened. These moves may reinforce capital flexibility, but investors are also assessing funding costs and whether the stock’s valuation adequately reflects slower near-term growth. Is Bank of America (BAC) A Bargain As New Debt Deals Test Its Valuation?
• Negative Sentiment: Investment-banking guidance is the main immediate headwind. CEO Brian Moynihan reportedly indicated that third-quarter investment-banking fees could decline by more than 10% year over year, contributing to a sharp recent selloff and prompting at least one analyst to reduce BAC’s fiscal-year EPS estimate. Bank of America Stock Fell 8% Last Week After Its CEO Spoke at an Industry Conference
• Negative Sentiment: Macro risks could offset rate-related benefits. Bank of America strategists warned that prolonged Middle East disruptions could push oil above $150 per barrel, raising inflation and economic-growth concerns. A more hawkish rate cycle could also increase funding costs and credit risks for banks. Oil Could Top $150 a Barrel if Supplies Further Tighten

Bank of America Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, businesses, institutional investors and governments. Its operations include consumer banking, credit and debit cards, mortgages, small-business banking, commercial banking, investment banking, securities trading and investment management.

The company provides consumer and wealth-management services through Bank of America and Merrill, including deposit accounts, lending, brokerage, retirement planning, financial advice and private banking.

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