Bank of America Corporation $BAC is Basswood Capital Management L.L.C.'s 3rd Largest Position

Key Points

• Basswood Capital Management increased its Bank of America stake by 13.5% in the second quarter to 2.1 million shares worth approximately $119.9 million, making BAC its third-largest holding. Institutional investors collectively own 70.71% of the company.
• Bank of America reported quarterly EPS of $1.21, exceeding estimates, while revenue rose 19.6% year over year to $31.56 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $64.08.
• The company raised its quarterly dividend to $0.32 per share, or $1.28 annually for a 2.1% yield, though potential risks include SEC scrutiny of margin lending, higher capital requirements and the loss of a senior technology investment-banking executive.

Basswood Capital Management L.L.C. grew its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 13.5% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 2,103,476 shares of the financial services provider's stock after buying an additional 250,769 shares during the quarter. Bank of America accounts for approximately 4.8% of Basswood Capital Management L.L.C.'s investment portfolio, making the stock its 3rd biggest holding. Basswood Capital Management L.L.C.'s holdings in Bank of America were worth $119,856,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Handelsbanken Fonder AB grew its holdings in Bank of America by 53.0% during the 4th quarter. Handelsbanken Fonder AB now owns 4,629,553 shares of the financial services provider's stock valued at $254,625,000 after buying an additional 1,603,080 shares in the last quarter. E Fund Management Co. Ltd. bought a new position in shares of Bank of America during the 2nd quarter valued at approximately $4,089,000. Bernicke Wealth Management Ltd. bought a new position in shares of Bank of America during the 2nd quarter valued at approximately $2,132,000. Legal & General Group Plc grew its holdings in shares of Bank of America by 3.4% in the fourth quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider's stock valued at $2,497,655,000 after purchasing an additional 1,487,809 shares in the last quarter. Finally, Mondrian Investment Partners LTD grew its holdings in shares of Bank of America by 34.3% in the fourth quarter. Mondrian Investment Partners LTD now owns 2,175,401 shares of the financial services provider's stock valued at $119,647,000 after purchasing an additional 555,063 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America News Roundup

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

• Positive Sentiment: Bank of America’s artificial-intelligence initiatives and branch expansion are expected to improve operating efficiency and customer service. The potential for productivity gains supports the long-term earnings case, although elevated expenses remain a risk. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Positive Sentiment: Strong inflows into gold and cryptocurrency funds reported by BofA suggest elevated client demand for investment products. That activity could benefit the bank’s wealth-management, brokerage and trading businesses, though the impact on BAC’s earnings is indirect.
• Neutral Sentiment: Bank of America disclosed holdings of approximately 4.69% and 5.87% in QIAGEN, reflecting regulatory notifications about its investment position. The disclosures may attract attention but do not materially change BAC’s core banking outlook. Bank of America Discloses 5.87% Stake in QIAGEN
• Neutral Sentiment: BofA strategists warned that global equities could face an autumn “reality check” tied to the U.S. midterm elections and geopolitical developments. A market pullback could weigh on BAC through lower investment-banking, asset-management and trading activity. Bank of America Warns of an Autumn Reality Check
• Negative Sentiment: JPMorgan is hiring senior technology dealmaker David Fishman from Bank of America. Losing an experienced M&A executive could weaken BAC’s technology investment-banking franchise and adds to competitive pressure. JPMorgan Hiring Bank of America’s David Fishman
• Negative Sentiment: The SEC is reportedly investigating margin lending to hedge fund Situational Awareness after a 67% drawdown, with Bank of America among the subpoenaed banks. Potential legal, credit and reputational risks could pressure sentiment. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: BAC is challenging proposed changes to the Federal Reserve’s global systemically important bank capital surcharge. Higher capital requirements could constrain lending, reduce balance-sheet flexibility and pressure returns on equity. Bank of America Joins Clash Over Fed GSIB Capital Rule

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Argus set a $70.00 price target on shares of Bank of America in a research note on Wednesday, July 15th. Barclays lifted their price objective on shares of Bank of America from $71.00 to $72.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. JPMorgan Chase & Co. upped their price objective on Bank of America from $62.50 to $68.00 and gave the company an "overweight" rating in a research report on Wednesday, July 29th. Oppenheimer lowered shares of Bank of America from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. Finally, Morgan Stanley lifted their price target on shares of Bank of America from $61.00 to $67.00 and gave the company an "overweight" rating in a research note on Monday, June 29th. Twenty-one investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and a consensus target price of $64.08.

Bank of America Stock Up 2.0%

NYSE:BAC opened at $62.38 on Friday. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The company's fifty day moving average price is $61.18 and its 200-day moving average price is $54.92. Bank of America Corporation has a 1-year low of $46.12 and a 1-year high of $65.22. The firm has a market capitalization of $436.21 billion, a P/E ratio of 14.31, a PEG ratio of 0.98 and a beta of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to the consensus estimate of $30.78 billion. During the same period in the previous year, the company posted $0.89 earnings per share. Bank of America's revenue for the quarter was up 19.6% on a year-over-year basis. As a group, equities research analysts anticipate that Bank of America Corporation will post 4.68 EPS for the current year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid a $0.32 dividend. The ex-dividend date is Friday, September 4th. This represents a $1.28 annualized dividend and a dividend yield of 2.1%. This is an increase from Bank of America's previous quarterly dividend of $0.28. Bank of America's dividend payout ratio (DPR) is presently 25.69%.

Bank of America Company Profile

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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