CreativeOne Wealth LLC Reduces Stock Position in Bank of America Corporation $BAC

Key Points

• CreativeOne Wealth LLC has reduced its stake in Bank of America Corporation by 24.5%, selling 26,750 shares and now owning a total of 82,413 shares valued at approximately $3.44 million.
• Bank of America has announced a $40 billion share buyback plan, allowing the company to repurchase up to 11.1% of its stock, which indicates that the board believes its shares are undervalued.
• The company has declared a quarterly dividend increase to $0.28 per share, with the upcoming payment scheduled for September 26th, representing a 2.2% yield based on the latest annualized rate.

CreativeOne Wealth LLC lowered its position in Bank of America Corporation (NYSE:BAC - Free Report) by 24.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 82,413 shares of the financial services provider's stock after selling 26,750 shares during the quarter. CreativeOne Wealth LLC's holdings in Bank of America were worth $3,439,000 at the end of the most recent quarter.

A number of other hedge funds have also made changes to their positions in BAC. Vega Investment Solutions purchased a new stake in Bank of America during the 4th quarter worth about $30,000. Spurstone Advisory Services LLC purchased a new stake in Bank of America during the 4th quarter worth about $34,000. Wood Tarver Financial Group LLC purchased a new stake in Bank of America during the 4th quarter worth about $38,000. Mascagni Wealth Management Inc. purchased a new stake in Bank of America during the 4th quarter worth about $40,000. Finally, Cloud Capital Management LLC purchased a new stake in Bank of America during the 1st quarter worth about $40,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on 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 report on Thursday, June 26th. HSBC lowered Bank of America from a "buy" rating to a "hold" rating and raised their price target for the stock from $47.00 to $51.00 in a research note on Monday, July 7th. Truist Financial raised their price target on Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Morgan Stanley raised their price target 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. Finally, Oppenheimer raised their price target on Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Seventeen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Trading Up 0.5%

Shares of NYSE BAC traded up $0.27 during midday trading on Friday, hitting $50.76. The stock had a trading volume of 32,491,463 shares, compared to its average volume of 34,794,552. The company has a market capitalization of $375.98 billion, a price-to-earnings ratio of 14.84, a PEG ratio of 1.97 and a beta of 1.31. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $50.92. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The company has a fifty day moving average price of $47.61 and a 200 day moving average price of $43.95.

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

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.2%. Bank of America's dividend payout ratio is presently 32.75%.

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

Insider Buying and Selling

In related news, insider James P. Demare sold 148,391 shares of the business'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 transaction 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. The trade was a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 0.30% of the company's stock.

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.