Bank of America Corporation $BAC Shares Newly Acquired by B.A. Schrock Wealth Management Inc.

Key Points

• B.A. Schrock Wealth Management acquired 25,515 Bank of America shares in the third quarter, valued at approximately $1.39 million. Institutional investors collectively own 70.71% of BAC’s outstanding stock.
• Bank of America shares fell 4.7% to $51.40, while quarterly results missed expectations: adjusted EPS was $1.08 versus $1.10 expected, and revenue was about $30.0 billion versus $30.6 billion estimated.
• The bank raised its quarterly dividend to $0.32 per share, representing a $1.28 annualized payout and a 2.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $64.22.

B.A. Schrock Wealth Management Inc. bought a new position in shares of Bank of America Corporation (NYSE:BAC) in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 25,515 shares of the financial services provider's stock, valued at approximately $1,389,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Legal & General Group Plc purchased a new position in shares of Bank of America in the 2nd quarter valued at approximately $2,571,060,000. Amundi increased its holdings in shares of Bank of America by 12.5% in the first quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock valued at $2,066,274,000 after purchasing an additional 4,721,969 shares during the period. Deutsche Bank AG purchased a new stake in shares of Bank of America during the second quarter worth approximately $2,359,172,000. Bank of New York Mellon Corp purchased a new stake in shares of Bank of America during the second quarter worth approximately $2,313,953,000. Finally, Dimensional Fund Advisors LP raised its stake in shares of Bank of America by 1.8% during the first quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock worth $1,517,599,000 after purchasing an additional 561,413 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Trading Down 4.7%

NYSE:BAC opened at $51.40 on Thursday. Bank of America Corporation has a 52-week low of $46.12 and a 52-week high of $65.22. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. The stock has a fifty day simple moving average of $59.51 and a 200-day simple moving average of $56.69. The company has a market capitalization of $359.45 billion, a PE ratio of 11.79, a price-to-earnings-growth ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings data on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.10 by ($0.02). Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $29.96 billion during the quarter, compared to analyst estimates of $30.58 billion. During the same period in the previous year, the company posted $1.06 earnings per share. Bank of America's revenue was up 3.2% on a year-over-year basis. On average, equities research analysts expect that Bank of America Corporation will post 4.60 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were given a $0.32 dividend. This is a boost from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Friday, September 4th. Bank of America's dividend payout ratio (DPR) is currently 29.36%.

Key Stories Impacting Bank of America

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

• Positive Sentiment: Underlying banking activity remained healthy: net interest income increased 8% year over year to $16.4 billion, consumer banking revenue rose 4%, wealth-management revenue climbed 13%, average loans grew 6%, and deposits increased 2%. The bank also returned $8.3 billion to shareholders through dividends and share repurchases. Bank of America Reports Third-Quarter Results
• Positive Sentiment: Some market commentary argued that the selloff could create a long-term buying opportunity, while options activity and a reported institutional purchase of long-dated BAC call options pointed to bullish interest among some investors. Unusual Long-Dated BAC Call Options
• Neutral Sentiment: CEO Brian Moynihan said Bank of America is addressing regulatory requirements and expects elevated remediation and software-patching expenses to decline over time. The bank hired about 1,000 contractors to help fix software vulnerabilities identified through Anthropic’s Mythos testing. Bank of America Software-Patching Costs
• Negative Sentiment: Adjusted EPS was $1.08 versus the $1.10 consensus, while revenue of roughly $30.0 billion missed estimates near $30.6 billion. Reported net income fell 17% to $6.9 billion, or $0.91 per share, after the regulatory charge. Bank of America Earnings Miss
• Negative Sentiment: Regulators imposed approximately $1.21 billion in penalties over anti-money-laundering, Bank Secrecy Act, and sanctions-compliance failures, including failures to timely report more than $5 billion in suspicious transactions. The non-tax-deductible charge reduced quarterly earnings by about $0.17 per share and intensified concerns that compliance problems may persist. Bank of America Regulatory Penalties
• Negative Sentiment: Expenses rose faster than revenue, pushing the adjusted efficiency ratio to about 62% from 60%. Bond-trading revenue fell 17%, investment-banking and trading results disappointed, and provisions for credit losses reached $1.3 billion. Hotter-than-expected inflation and several shareholder-law-firm investigations added to the cautious backdrop.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on BAC shares. Rothschild & Co Redburn set a $72.00 price objective on shares of Bank of America in a research report on Tuesday, October 6th. Jefferies Financial Group dropped their price objective on shares of Bank of America from $75.00 to $70.00 and set a "buy" rating on the stock in a research note on Thursday, September 24th. Evercore set a $62.00 price objective on shares of Bank of America in a research report on Thursday, October 1st. Wells Fargo & Company raised their target price on shares of Bank of America from $67.00 to $69.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Bank of America in a research note on Tuesday, July 21st. Nineteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $64.22.

Bank of America Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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