Bank of America Corp DE Invests $219.07 Million in Regions Financial Corporation $RF

Key Points

• Bank of America initiated a $219.1 million position in Regions Financial, purchasing 7.25 million shares and owning approximately 0.85% of the company. Institutional investors collectively hold 79.39% of Regions Financial’s stock.
• Analysts maintain a generally cautious outlook, with an average rating of “Hold” and an average price target of $32.29. Recent ratings range from “Buy” to “Sell,” while Regions shares opened at $28.46 after declining 4.1%.
• Regions Financial exceeded quarterly earnings expectations, reporting $0.68 in EPS versus the $0.63 consensus estimate, and raised its quarterly dividend from $0.27 to $0.30 per share, representing a 4.2% annualized yield.

Bank of America Corp DE bought a new position in shares of Regions Financial Corporation (NYSE:RF - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund bought 7,253,906 shares of the bank's stock, valued at approximately $219,068,000. Bank of America Corp DE owned about 0.85% of Regions Financial at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in RF. Norges Bank bought a new stake in shares of Regions Financial during the 4th quarter worth about $254,564,000. Victory Capital Management Inc. lifted its position in Regions Financial by 68.9% during the fourth quarter. Victory Capital Management Inc. now owns 22,836,163 shares of the bank's stock worth $618,860,000 after acquiring an additional 9,312,449 shares during the last quarter. First Trust Advisors LP boosted its holdings in shares of Regions Financial by 75.7% during the first quarter. First Trust Advisors LP now owns 13,358,969 shares of the bank's stock worth $348,936,000 after acquiring an additional 5,754,487 shares during the period. Legal & General Group Plc bought a new stake in shares of Regions Financial during the second quarter worth approximately $163,654,000. Finally, Korea Investment CORP acquired a new position in shares of Regions Financial in the second quarter valued at approximately $99,190,000. Institutional investors own 79.39% of the company's stock.

Analyst Ratings Changes

RF has been the topic of a number of recent research reports. Robert W. Baird reiterated an "underperform" rating and set a $28.00 target price on shares of Regions Financial in a research note on Monday, July 6th. Stephens began coverage on Regions Financial in a research note on Monday, June 15th. They issued an "equal weight" rating and a $31.00 price target for the company. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Regions Financial in a report on Friday, July 17th. JPMorgan Chase & Co. increased their price objective on Regions Financial from $31.50 to $32.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Finally, DA Davidson lifted their target price on Regions Financial from $33.00 to $34.00 and gave the stock a "neutral" rating in a report on Monday, July 20th. Six research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, Regions Financial presently has an average rating of "Hold" and an average price target of $32.29.

Regions Financial Stock Down 4.1%

Shares of NYSE RF opened at $28.46 on Thursday. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.81 and a current ratio of 0.81. Regions Financial Corporation has a 52 week low of $22.70 and a 52 week high of $32.47. The stock has a market capitalization of $24.25 billion, a P/E ratio of 11.62, a PEG ratio of 1.21 and a beta of 0.99. The stock's fifty day moving average is $30.81 and its 200 day moving average is $28.82.

Regions Financial (NYSE:RF - Get Free Report) last posted its quarterly earnings data on Friday, July 17th. The bank reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.05. The business had revenue of $1.95 billion during the quarter, compared to analysts' expectations of $1.94 billion. Regions Financial had a net margin of 23.33% and a return on equity of 12.88%. Regions Financial's revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.60 earnings per share. Sell-side analysts forecast that Regions Financial Corporation will post 2.63 earnings per share for the current fiscal year.

Regions Financial Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.30 per share. This is a boost from Regions Financial's previous quarterly dividend of $0.27. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.2%. Regions Financial's payout ratio is currently 48.98%.

About Regions Financial

Regions Financial Corporation NYSE: RF is a financial services company headquartered in Birmingham, Alabama. Through its principal subsidiary, Regions Bank, the company provides banking and related financial services to consumer, commercial and institutional customers.

Regions Bank offers checking and savings accounts, consumer loans, credit cards, mortgages, home equity products and other personal banking services. Its commercial and corporate offerings include business loans, treasury management, equipment financing, capital markets services and other solutions for companies, municipalities and institutions.

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