Applied Finance Capital Management LLC Sells 570,666 Shares of Bank of America Corporation (NYSE:BAC)

Key Points

• Applied Finance Capital Management LLC reduced its holdings in Bank of America by 54.3%, selling 570,666 shares and retaining 479,441 shares, making the stock its 28th largest holding.
• Bank of America announced a quarterly dividend increase to $0.28 per share, with a yield of 2.31% and a payout ratio of 30.41%.
• The company is authorized to repurchase up to $40 billion of its outstanding shares, reflecting a belief by its board that the stock is undervalued.

Applied Finance Capital Management LLC lessened its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 54.3% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 479,441 shares of the financial services provider's stock after selling 570,666 shares during the period. Bank of America accounts for 1.5% of Applied Finance Capital Management LLC's holdings, making the stock its 28th biggest holding. Applied Finance Capital Management LLC's holdings in Bank of America were worth $20,007,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of BAC. Vega Investment Solutions bought a new position in shares of Bank of America during the 4th quarter worth approximately $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of Bank of America in the 4th quarter valued at $31,000. Spurstone Advisory Services LLC acquired a new position in shares of Bank of America during the 4th quarter valued at $34,000. Glass Jacobson Investment Advisors llc lifted its position in shares of Bank of America by 53.0% during the 4th quarter. Glass Jacobson Investment Advisors llc now owns 797 shares of the financial services provider's stock valued at $35,000 after acquiring an additional 276 shares during the period. Finally, Wood Tarver Financial Group LLC bought a new position in Bank of America during the fourth quarter worth $38,000. Institutional investors own 70.71% of the company's stock.

Bank of America Price Performance

Bank of America stock opened at $48.47 on Friday. Bank of America Corporation has a 52 week low of $33.06 and a 52 week high of $49.31. The company's 50 day moving average price is $45.91 and its two-hundred day moving average price is $43.75. The stock has a market cap of $365.09 billion, a P/E ratio of 14.17, a P/E/G ratio of 1.88 and a beta of 1.30. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results 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 business had revenue of ($22,273.00) million for the quarter, compared to analyst estimates of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. Bank of America's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period last year, the company posted $0.83 earnings per share. On average, equities analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Increases Dividend

The business 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. The ex-dividend date is Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.31%. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is presently 30.41%.

Bank of America announced that its Board of Directors has approved a stock repurchase program on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

BAC has been the subject of several research analyst reports. Hsbc Global Res downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. Oppenheimer reduced their target price on Bank of America from $57.00 to $55.00 and set an "outperform" rating for the company in a research note on Thursday, July 17th. Cowen initiated coverage on Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating on the stock. Phillip Securities raised Bank of America from a "moderate buy" rating to a "strong-buy" rating in a research note on Thursday, April 17th. Finally, Wall Street Zen downgraded Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. One research analyst has rated the stock with a sell rating, five have issued a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and an average target price of $50.03.

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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