Bank of America Corporation $BAC is Teza Capital Management LLC's 5th Largest Position

Key Points

• Teza Capital Management LLC increased its investment in Bank of America by 60.1%, making it the company's 5th largest holding, with a total worth of approximately $2.1 million.
• Bank of America has initiated a $40 billion share repurchase program, allowing it to buy back up to 11.1% of its shares, indicating management's belief that the stock is undervalued.
• The company also announced an increase in its quarterly dividend from $0.26 to $0.28, resulting in an annualized dividend of $1.12 and a yield of 2.3%.

Teza Capital Management LLC boosted its holdings in shares of Bank of America Corporation (NYSE:BAC) by 60.1% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 50,353 shares of the financial services provider's stock after acquiring an additional 18,911 shares during the period. Bank of America accounts for about 1.0% of Teza Capital Management LLC's investment portfolio, making the stock its 5th largest holding. Teza Capital Management LLC's holdings in Bank of America were worth $2,101,000 as of its most recent SEC filing.

Other large investors also recently bought and sold shares of the company. Vega Investment Solutions purchased a new position in Bank of America in the fourth quarter worth about $30,000. Spurstone Advisory Services LLC purchased a new position in shares of Bank of America during the fourth quarter valued at approximately $34,000. Wood Tarver Financial Group LLC purchased a new position in shares of Bank of America during the fourth quarter valued at approximately $38,000. Mascagni Wealth Management Inc. bought a new stake in Bank of America during the fourth quarter valued at approximately $40,000. Finally, Cloud Capital Management LLC bought a new stake in Bank of America during the first quarter valued at approximately $40,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the transaction, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. This trade represents a 39.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.30% of the stock is owned by insiders.

Bank of America Stock Down 1.8%

Shares of Bank of America stock opened at $49.69 on Friday. Bank of America Corporation has a 1 year low of $33.06 and a 1 year high of $50.92. The stock has a market cap of $368.07 billion, a price-to-earnings ratio of 14.53, a PEG ratio of 1.93 and a beta of 1.34. 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 firm's 50-day moving average is $47.95 and its two-hundred day moving average is $44.08.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.03. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The business had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations of $26.79 billion. During the same period last year, the business earned $0.83 EPS. The company's revenue was up 4.3% compared to the same quarter last year. As a group, research analysts expect that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America declared that its board has initiated a share repurchase 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 purchase up to 11.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its stock is undervalued.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is 30.41%.

Analysts Set New Price Targets

A number of research firms have weighed in on BAC. Robert W. Baird reiterated a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a research report on Friday, June 27th. Hsbc Global Res lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. The Goldman Sachs Group upped their price target on shares of Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a research note on Tuesday, June 10th. HSBC downgraded shares of Bank of America from a "buy" rating to a "hold" rating and upped their price target for the company from $47.00 to $51.00 in a research note on Monday, July 7th. Finally, Morgan Stanley increased their target price on shares of Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research note on Monday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $50.39.

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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