Bank of America Corporation $BAC Shares Sold by MassMutual Private Wealth & Trust FSB

Key Points

• MassMutual Private Wealth & Trust FSB reduced its stake in Bank of America by 1.4% during the second quarter, holding approximately 694,264 shares valued at $32.85 million.
• Bank of America announced a $40 billion share buyback program and increased its quarterly dividend to $0.28 per share, reflecting confidence in its stock value.
• Despite a positive earnings report with $0.89 earnings per share, several analysts have revised their ratings, with a consensus of Moderate Buy and a price target of $50.39.

MassMutual Private Wealth & Trust FSB lessened its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 1.4% in the second quarter, according to its most recent filing with the SEC. The firm owned 694,264 shares of the financial services provider's stock after selling 9,765 shares during the quarter. Bank of America comprises approximately 0.9% of MassMutual Private Wealth & Trust FSB's holdings, making the stock its 28th largest position. MassMutual Private Wealth & Trust FSB's holdings in Bank of America were worth $32,853,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in the business. Nova Wealth Management Inc. lifted its holdings in shares of Bank of America by 75.2% in the second quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock valued at $25,000 after buying an additional 227 shares during the period. Vega Investment Solutions acquired a new stake in shares of Bank of America in the fourth quarter valued at $30,000. Spurstone Advisory Services LLC acquired a new stake in shares of Bank of America in the fourth quarter valued at $34,000. Wood Tarver Financial Group LLC acquired a new stake in shares of Bank of America in the fourth quarter valued at $38,000. Finally, Mascagni Wealth Management Inc. acquired a new stake in shares of Bank of America in the fourth quarter valued at $40,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Price Performance

Shares of NYSE:BAC opened at $50.60 on Tuesday. The business has a 50 day moving average price of $48.17 and a 200 day moving average price of $44.31. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $51.09. The company has a market cap of $374.79 billion, a price-to-earnings ratio of 14.80, a PEG ratio of 1.96 and a beta of 1.34. 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 announced its earnings results 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. 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 the consensus estimate of $26.79 billion. During the same quarter in the prior year, the company earned $0.83 EPS. The firm's revenue for the quarter was up 4.3% compared to the same quarter last year. Research analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America announced that its Board of Directors has approved a share buyback program on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's management believes its shares are undervalued.

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 given a $0.28 dividend. The ex-dividend date is Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is 32.75%.

Insider Activity at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the firm'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 completion of the sale, the insider owned 223,407 shares in the company, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on BAC shares. Baird R W lowered Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Citigroup boosted their target price 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. Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 target price on shares of Bank of America in a report on Friday, June 27th. Wall Street Zen raised Bank of America from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Oppenheimer upped their target price on Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Sixteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. 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 Company 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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