Bank of America Corporation $BAC Shares Purchased by HMS Capital Management LLC

Key Points

• HMS Capital Management LLC significantly increased its stake in Bank of America by 674.3% during the first quarter, owning 47,273 shares valued at approximately $1.97 million.
• Bank of America recently authorized a stock buyback plan of up to $40 billion, indicating the board's belief that the stock is undervalued.
• The company announced an increase in its quarterly dividend from $0.26 to $0.28, resulting in a yield of 2.3%.

HMS Capital Management LLC lifted its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 674.3% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 47,273 shares of the financial services provider's stock after buying an additional 41,168 shares during the quarter. Bank of America accounts for approximately 1.0% of HMS Capital Management LLC's holdings, making the stock its 26th largest holding. HMS Capital Management LLC's holdings in Bank of America were worth $1,973,000 at the end of the most recent reporting period.

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

Bank of America Price Performance

Shares of NYSE BAC opened at $48.0650 on Wednesday. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $49.31. The firm has a market capitalization of $356.02 billion, a P/E ratio of 14.05, a P/E/G ratio of 1.86 and a beta of 1.31. The firm's 50-day moving average price is $46.81 and its 200-day moving average price is $43.79.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping 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 company had revenue of ($22,273.00) million for the quarter, compared to analyst estimates of $26.79 billion. During the same quarter in the prior year, the business posted $0.83 EPS. The firm's revenue was up 4.3% compared to the same quarter last year. Equities research analysts anticipate that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be paid a $0.28 dividend. This is a positive change from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.3%. Bank of America's dividend payout ratio (DPR) is 30.41%.

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

Wall Street Analyst Weigh In

BAC has been the topic of a number of research analyst reports. The Goldman Sachs Group lifted their price target on Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a report on Tuesday, June 10th. HSBC downgraded Bank of America from a "buy" rating to a "hold" rating and increased their target price for the company from $47.00 to $51.00 in a research note on Monday, July 7th. Hsbc Global Res cut Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. TD Cowen assumed coverage on Bank of America in a report on Thursday, May 15th. They issued a "buy" rating and a $53.00 target price for the company. Finally, Robert W. Baird reissued a "neutral" rating and issued a $52.00 target price on shares of Bank of America in a report on Friday, June 27th. Seventeen equities 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.com, Bank of America presently has an average rating of "Moderate Buy" and an average price target of $50.13.

Insider Buying and Selling at Bank of America

In other 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 transaction 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 represents a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.30% of the stock is owned by corporate insiders.

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.

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