First Financial Bankshares Inc Boosts Stock Holdings in Bank of America Corporation $BAC

Key Points

• First Financial Bankshares Inc increased its stake in Bank of America by 14.7%, owning approximately 1.66 million shares valued at $69.4 million.
• Bank of America recently announced a $40 billion stock buyback plan and declared a dividend increase to $0.28 per share, reflecting a 7.7% rise from the previous quarter.
• Bank of America reported a quarterly EPS of $0.89, exceeding analysts' expectations, despite revenues falling short of estimates at $22.27 billion.

First Financial Bankshares Inc grew its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 14.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,663,914 shares of the financial services provider's stock after acquiring an additional 213,731 shares during the period. Bank of America comprises about 1.5% of First Financial Bankshares Inc's investment portfolio, making the stock its 18th biggest position. First Financial Bankshares Inc's holdings in Bank of America were worth $69,435,000 at the end of the most recent quarter.

A number of other hedge funds have also bought and sold shares of BAC. Nicholas Hoffman & Company LLC. lifted its stake in shares of Bank of America by 121.0% during the 1st quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider's stock worth $2,589,000 after purchasing an additional 33,963 shares during the last quarter. Gradient Investments LLC lifted its holdings in Bank of America by 7.8% in the first quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock valued at $29,061,000 after acquiring an additional 50,296 shares during the last quarter. Prosperity Wealth Management Inc. purchased a new stake in shares of Bank of America in the 1st quarter valued at $998,000. Alpha Cubed Investments LLC raised its holdings in shares of Bank of America by 37.2% in the 1st quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock valued at $2,714,000 after purchasing an additional 17,619 shares in the last quarter. Finally, International Assets Investment Management LLC lifted its position in Bank of America by 170.5% in the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock valued at $9,951,000 after acquiring an additional 150,299 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Insiders Place Their Bets

In related news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction that occurred 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 transaction, the insider directly owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.30% of the stock is currently owned by company insiders.

Bank of America Price Performance

Shares of NYSE:BAC traded down $0.38 during midday trading on Wednesday, hitting $50.05. The stock had a trading volume of 34,135,329 shares, compared to its average volume of 32,251,908. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a fifty-two week low of $33.06 and a fifty-two week high of $50.92. The company has a market capitalization of $370.68 billion, a P/E ratio of 14.84, a price-to-earnings-growth ratio of 1.97 and a beta of 1.34. The company's 50-day moving average price is $47.77 and its 200-day moving average price is $44.00.

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

Bank of America announced that its board has initiated a stock repurchase plan on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in shares. This repurchase authorization authorizes the financial services provider to purchase up to 11.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is presently 30.41%.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on BAC. Wall Street Zen lowered Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Phillip Securities downgraded Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Morgan Stanley boosted their price target on shares of Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a research report on Monday, June 23rd. Robert W. Baird restated a "neutral" rating and set a $52.00 price target on shares of Bank of America in a report on Friday, June 27th. Finally, Baird R W downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Sixteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $50.39.

Bank of America 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.