ASR Vermogensbeheer N.V. Takes $31.18 Million Position in Bank of America Corporation (NYSE:BAC)

Key Points

• ASR Vermogensbeheer N.V. has invested approximately $31.18 million in Bank of America, acquiring 747,144 shares of the financial services provider during the first quarter.
• Bank of America has recently declared a quarterly dividend increase to $0.28 per share, up from the previous $0.26, with an annualized yield of 2.5%.
• The company has approved a $40 billion stock buyback program, allowing the repurchase of up to 11.1% of its own shares, indicating strong confidence in its stock valuation.

ASR Vermogensbeheer N.V. purchased a new position in Bank of America Corporation (NYSE:BAC - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 747,144 shares of the financial services provider's stock, valued at approximately $31,180,000.

A number of other large investors have also bought and sold shares of the stock. Price T Rowe Associates Inc. MD increased its stake in Bank of America by 10.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock worth $5,381,126,000 after purchasing an additional 11,691,451 shares during the period. Capital World Investors increased its stake in Bank of America by 23.9% in the 4th quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider's stock worth $3,876,853,000 after purchasing an additional 17,031,143 shares during the period. Northern Trust Corp increased its stake in Bank of America by 17.2% in the 4th quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock worth $2,985,785,000 after purchasing an additional 9,980,859 shares during the period. Bank of New York Mellon Corp increased its stake in Bank of America by 1.3% in the 1st quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock worth $2,521,218,000 after purchasing an additional 803,570 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Bank of America by 12.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,092,517 shares of the financial services provider's stock worth $1,981,816,000 after purchasing an additional 5,092,504 shares during the period. 70.71% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the sale, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.30% of the stock is owned by insiders.

Bank of America Price Performance

Shares of NYSE BAC traded down $0.55 during mid-day trading on Thursday, reaching $44.87. The company's stock had a trading volume of 30,604,012 shares, compared to its average volume of 38,320,360. The firm has a market capitalization of $332.34 billion, a PE ratio of 13.12, a P/E/G ratio of 1.76 and a beta of 1.31. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. The stock has a fifty day moving average of $46.39 and a two-hundred day moving average of $43.78. Bank of America Corporation has a 52 week low of $33.06 and a 52 week high of $49.31.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data 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. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. The business had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the previous year, the company posted $0.83 EPS. The company's revenue was up 4.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America announced that its Board of Directors has initiated a share buyback program on Wednesday, July 23rd that allows the company to buyback $40.00 billion in 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 often a sign that the company's board 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. Stockholders of record on Friday, September 5th will be paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is 30.41%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on BAC shares. Argus reduced their target price on Bank of America from $53.00 to $47.00 and set a "buy" rating on the stock in a research note on Wednesday, April 16th. Hsbc Global Res lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Morgan Stanley lifted their price target on Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. HSBC lowered Bank of America from a "buy" rating to a "hold" rating and lifted their price target for the company from $47.00 to $51.00 in a research report on Monday, July 7th. Finally, Keefe, Bruyette & Woods dropped their price target on Bank of America from $55.00 to $52.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 16th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $50.13.

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.