AustralianSuper Pty Ltd Raises Stake in Bank of America Corporation $BAC

Key Points

• AustralianSuper Pty Ltd increased its Bank of America stake by 424.4% in the fourth quarter, buying an additional 438,390 shares and bringing its holding to 541,677 shares worth about $29.8 million.
• Bank of America reported better-than-expected quarterly earnings, posting $1.11 EPS versus the $1.00 estimate and $30.27 billion in revenue, with revenue up 10.7% year over year.
• The company also declared a quarterly dividend of $0.28 per share, implying a 2.3% yield; meanwhile, analysts remain broadly positive with a consensus rating of Moderate Buy and an average target price of about $61.06.

AustralianSuper Pty Ltd lifted its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 424.4% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 541,677 shares of the financial services provider's stock after buying an additional 438,390 shares during the quarter. AustralianSuper Pty Ltd's holdings in Bank of America were worth $29,792,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the business. Wiser Advisor Group LLC purchased a new position in Bank of America during the third quarter worth about $27,000. Legacy Bridge LLC lifted its position in Bank of America by 182.3% during the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider's stock worth $28,000 after buying an additional 330 shares during the period. Collier Financial purchased a new position in Bank of America during the third quarter worth about $30,000. Joseph Group Capital Management purchased a new position in Bank of America during the fourth quarter worth about $32,000. Finally, Coston McIsaac & Partners lifted its position in Bank of America by 90.2% during the fourth quarter. Coston McIsaac & Partners now owns 662 shares of the financial services provider's stock worth $36,000 after buying an additional 314 shares during the period. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Bank of America Trading Down 0.2%

NYSE BAC opened at $49.77 on Friday. Bank of America Corporation has a one year low of $42.35 and a one year high of $57.55. The company's 50 day moving average price is $50.40 and its 200 day moving average price is $52.44. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.81 and a current ratio of 0.81. The firm has a market capitalization of $353.18 billion, a price-to-earnings ratio of 12.32, a PEG ratio of 0.84 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.11. The business had revenue of $30.27 billion for the quarter, compared to analyst estimates of $29.72 billion. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The business's quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.90 EPS. On average, sell-side analysts predict that Bank of America Corporation will post 4.46 EPS for the current year.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 5th will be issued a dividend of $0.28 per share. The ex-dividend date is Friday, June 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.3%. Bank of America's payout ratio is presently 27.72%.

Insider Buying and Selling at Bank of America

In other news, insider Bernard A. Mensah sold 94,000 shares of the company's stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $46.94, for a total value of $4,412,360.00. Following the completion of the sale, the insider owned 170,184 shares of the company's stock, valued at $7,988,436.96. This represents a 35.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Thomas M. Scrivener sold 50,000 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $49.82, for a total value of $2,491,000.00. Following the completion of the sale, the insider directly owned 227,973 shares of the company's stock, valued at $11,357,614.86. The trade was a 17.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 354,588 shares of company stock worth $17,814,296. Insiders own 0.27% of the company's stock.

Bank of America News Summary

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

• Positive Sentiment: Bank of America is being highlighted as a potential beneficiary of a “higher-for-longer” or steeper yield-curve environment, which could support lending margins and fixed-rate asset repricing for large banks. Article Title
• Positive Sentiment: Investors are also viewing Bank of America as one of the better-value large banks, with commentary pointing to its relatively attractive valuation and Buffett-backed reputation as reasons it could hold up well versus peers. Article Title
• Neutral Sentiment: Analysts are also using Bank of America’s research platform to make calls on other stocks, including Alphabet, Taiwan Semiconductor, ASML, Nvidia, Akamai, IQVIA, and VNET. These notes reinforce BofA’s influence on markets, but they do not directly change BAC’s fundamentals. Article Title
• Negative Sentiment: Evercore lowered its price target on Bank of America from $70 to $61, which is a modest caution signal even though the firm kept an Outperform rating. Article Title

Wall Street Analyst Weigh In

Several research firms recently issued reports on BAC. HSBC raised their target price on shares of Bank of America from $55.00 to $60.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Wall Street Zen raised shares of Bank of America from a "sell" rating to a "hold" rating in a research report on Saturday, February 14th. Robert W. Baird boosted their price objective on shares of Bank of America from $56.00 to $58.00 and gave the company a "neutral" rating in a research note on Thursday, April 16th. Truist Financial boosted their price objective on shares of Bank of America from $57.00 to $61.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Finally, Daiwa Securities Group boosted their price objective on shares of Bank of America from $58.00 to $61.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $61.06.

About Bank of America

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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