First Manhattan CO. LLC. Buys 37,593 Shares of Bank of America Corporation $BAC

Key Points

• First Manhattan Co. LLC increased its position in Bank of America by 34.7%, acquiring an additional 37,593 shares, valuing its holdings at approximately $6.08 million.
• Bank of America recently announced a quarterly dividend increase to $0.28 per share, reflecting a 2.2% yield, and a significant $40 billion stock buyback program was approved by its Board of Directors.
• Bank of America has received mixed ratings from analysts, with a consensus rating of "Moderate Buy" and a price target ranging around $50.13.

First Manhattan CO. LLC. lifted its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 34.7% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 145,807 shares of the financial services provider's stock after purchasing an additional 37,593 shares during the period. First Manhattan CO. LLC.'s holdings in Bank of America were worth $6,085,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of BAC. Vega Investment Solutions bought a new stake in shares of Bank of America during the 4th quarter worth about $30,000. Spurstone Advisory Services LLC acquired a new stake in Bank of America during the 4th quarter valued at $34,000. Wood Tarver Financial Group LLC acquired a new stake in Bank of America during the 4th quarter valued at $38,000. Mascagni Wealth Management Inc. acquired a new stake in shares of Bank of America in the 4th quarter valued at $40,000. Finally, Cloud Capital Management LLC acquired a new stake in shares of Bank of America in the 1st quarter valued at $40,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

BAC has been the subject of several research reports. TD Cowen initiated coverage on Bank of America in a research note on Thursday, May 15th. They issued a "buy" rating and a $53.00 target price for the company. Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price objective on shares of Bank of America in a research note on Friday, June 27th. Cowen assumed coverage on Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating for the company. Citigroup lifted their price objective on Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a research note on Thursday, June 26th. Finally, Morgan Stanley lifted their price objective on Bank of America from $47.00 to $49.00 and gave the stock 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 given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $50.39.

Bank of America Stock Performance

NYSE:BAC traded up $0.60 on Thursday, hitting $50.66. The company's stock had a trading volume of 23,852,053 shares, compared to its average volume of 41,864,086. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The stock has a fifty day moving average of $47.83 and a two-hundred day moving average of $44.05. The firm has a market capitalization of $375.24 billion, a P/E ratio of 14.81, a price-to-earnings-growth ratio of 1.97 and a beta of 1.34. Bank of America Corporation has a one year low of $33.06 and a one year high of $50.92.

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

Bank of America Increases Dividend

The company also recently declared 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 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date 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 currently 30.41%.

Bank of America announced that its Board of Directors has approved a stock buyback plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the stock in a transaction on Friday, August 1st. The stock was 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 in the company, valued at approximately $10,180,656.99. This 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 this hyperlink. Insiders own 0.30% of the company's stock.

About Bank of America

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.