Bank of America Corporation $BAC Shares Sold by Himalaya Capital Management LLC

Key Points

• Himalaya Capital Management LLC reduced its stake in Bank of America by 23.4%, now holding approximately 13.8 million shares, which accounts for 26.1% of their investment portfolio.
• Bank of America recently announced a dividend increase to $0.28 per share and approved a $40 billion share buyback plan, indicating confidence in its stock valuation.
• Analyst ratings for Bank of America show a mix of upgrades and downgrades, with a consensus rating of "Moderate Buy" and an average price target of $50.13.

Himalaya Capital Management LLC lessened its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 23.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 13,846,633 shares of the financial services provider's stock after selling 4,234,500 shares during the period. Bank of America makes up 26.1% of Himalaya Capital Management LLC's investment portfolio, making the stock its largest position. Himalaya Capital Management LLC owned 0.18% of Bank of America worth $577,820,000 as of its most recent SEC filing.

Several other large investors have also modified their holdings of BAC. Focus Partners Advisor Solutions LLC increased its stake in shares of Bank of America by 12.0% during the first quarter. Focus Partners Advisor Solutions LLC now owns 136,846 shares of the financial services provider's stock worth $5,710,000 after buying an additional 14,612 shares during the period. First Financial Bankshares Inc grew its stake in shares of Bank of America by 14.7% in the 1st quarter. First Financial Bankshares Inc now owns 1,663,914 shares of the financial services provider's stock valued at $69,435,000 after purchasing an additional 213,731 shares during the last quarter. Retirement Planning Co of New England Inc. grew its stake in shares of Bank of America by 0.9% in the 1st quarter. Retirement Planning Co of New England Inc. now owns 44,743 shares of the financial services provider's stock valued at $1,867,000 after purchasing an additional 400 shares during the last quarter. Quarry LP acquired a new stake in shares of Bank of America in the 1st quarter valued at approximately $512,000. Finally, Calton & Associates Inc. lifted its holdings in shares of Bank of America by 6.6% in the 1st quarter. Calton & Associates Inc. now owns 18,906 shares of the financial services provider's stock valued at $789,000 after buying an additional 1,166 shares during the period. Institutional investors and hedge funds own 70.71% of the company's stock.

Insider Buying and Selling

In other Bank of America news, insider James P. Demare sold 148,391 shares of the stock in a transaction 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.30% of the stock is owned by insiders.

Bank of America Stock Performance

Shares of NYSE:BAC traded up $0.58 during trading on Thursday, hitting $50.64. 27,140,351 shares of the company traded hands, compared to its average volume of 41,869,313. Bank of America Corporation has a one year low of $33.06 and a one year high of $50.92. The stock has a market capitalization of $375.05 billion, a price-to-earnings ratio of 14.81, a PEG ratio of 1.97 and a beta of 1.34. The business's fifty day moving average is $47.83 and its 200-day moving average is $44.05. 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 (NYSE:BAC - Get Free Report) last issued its quarterly 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. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. During the same period last year, the company posted $0.83 EPS. The firm's quarterly revenue was up 4.3% on a year-over-year basis. As a group, equities analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America announced that its board has authorized a stock buyback 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 reacquire up to 11.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be given a dividend of $0.28 per share. 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. This represents a $1.12 annualized dividend and a yield of 2.2%. Bank of America's dividend payout ratio (DPR) is currently 30.41%.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Truist Financial boosted their price target on Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a report on Wednesday, July 9th. The Goldman Sachs Group lifted their price objective on Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a research report on Tuesday, June 10th. Morgan Stanley lifted their price objective on Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. Cowen assumed coverage on Bank of America in a research report on Wednesday, May 14th. They issued a "buy" rating for the company. Finally, Royal Bank Of Canada set a $53.00 price objective on Bank of America and gave the company an "outperform" rating in a research report on Monday, June 30th. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price 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.