Bank of America Corporation $BAC Shares Sold by Parkside Investments LLC

Key Points

• Parkside Investments cut its Bank of America position by 77.5% in the third quarter, selling 31,000 shares and retaining 9,000 shares valued at approximately $490,000. Institutional investors and hedge funds still own 70.71% of BAC, with several major firms recently building stakes.
• Analysts maintain a generally positive outlook, with 20 Buy ratings and six Holds producing a consensus “Moderate Buy” rating and an average price target of $62.82, despite several recent target-price reductions.
• Bank of America’s latest quarter slightly missed earnings and revenue estimates, although revenue rose 3.2% year over year. The bank increased its quarterly dividend to $0.32 per share, implying a 2.5% annualized yield, while regulatory penalties and related litigation remain key risks.

Parkside Investments LLC cut its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 77.5% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,000 shares of the financial services provider's stock after selling 31,000 shares during the period. Parkside Investments LLC's holdings in Bank of America were worth $490,000 as of its most recent SEC filing.

Several other institutional investors have also made changes to their positions in BAC. Legal & General Group Plc bought a new stake in shares of Bank of America in the 2nd quarter valued at approximately $2,571,060,000. Deutsche Bank AG bought a new position in Bank of America during the second quarter valued at approximately $2,359,172,000. Bank of New York Mellon Corp bought a new position in Bank of America during the second quarter valued at approximately $2,313,953,000. Amundi lifted its stake in Bank of America by 12.5% in the first quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock valued at $2,066,274,000 after acquiring an additional 4,721,969 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Bank of America by 1.8% in the first quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock valued at $1,517,599,000 after acquiring an additional 561,413 shares during the last quarter. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Barclays decreased their target price on shares of Bank of America from $72.00 to $68.00 and set an "overweight" rating for the company in a research report on Thursday, October 15th. HSBC began coverage on shares of Bank of America in a report on Monday, September 28th. They set a "buy" rating and a $65.00 price target on the stock. Morgan Stanley reduced their price objective on shares of Bank of America from $67.00 to $61.00 and set an "overweight" rating for the company in a research note on Thursday, October 15th. Citigroup reduced their price objective on shares of Bank of America from $66.00 to $60.00 and set a "buy" rating for the company in a research note on Thursday, October 15th. Finally, TD Cowen decreased their price objective on shares of Bank of America from $60.00 to $56.00 and set a "hold" rating for the company in a report on Thursday, October 15th. Twenty investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and a consensus price target of $62.82.

Key Headlines Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America’s second-quarter average loans rose 8% year over year while deposits increased 2%. Despite the uneven growth, net interest income climbed 9%, suggesting the bank is generating stronger returns from its deposit base and lending franchise. Bank of America Deposit Franchise Article
• Positive Sentiment: Bank of America was upgraded to a Buy rating by JLPascual. Other recent commentary indicated that the previously announced regulatory fine and earnings-related weakness may already be reflected in the stock, supporting the potential for a recovery. Bank of America Buy Upgrade
• Neutral Sentiment: The bank launched another investment-grade bond offering, including perpetual notes, shortly after raising $8 billion. The issuance may strengthen funding and capital flexibility, although it also adds financing costs and highlights continued reliance on wholesale markets. Bank of America Bond Sale
• Neutral Sentiment: Bank of America disclosed higher indirect stakes in Qiagen, ICU Girişim Sermayesi and Link Bilgisayar. These appear to be investment or regulatory ownership disclosures rather than changes to the core banking business. Qiagen Stake Disclosure
• Negative Sentiment: Multiple law firms announced or promoted securities-fraud investigations and class actions tied to alleged investor misstatements concerning anti-money-laundering and sanctions-compliance failures. The litigation follows more than $1.2 billion in federal penalties and creates potential legal costs and reputational damage. BAC Securities Class Action Alert
• Negative Sentiment: The latest reported quarter missed consensus estimates on both earnings and revenue, while broad bank stocks remain under pressure from rising Treasury yields and uncertainty over Federal Reserve policy. Bank Stocks Under Pressure

Bank of America Stock Performance

NYSE:BAC opened at $50.59 on Wednesday. The firm has a market capitalization of $353.77 billion, a PE ratio of 12.02, a PEG ratio of 0.86 and a beta of 1.21. Bank of America Corporation has a 1 year low of $46.12 and a 1 year high of $65.22. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 1.17. The firm's fifty day simple moving average is $58.52 and its 200 day simple moving average is $56.77.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share for the quarter, missing the consensus estimate of $1.10 by ($0.02). Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The business had revenue of $29.96 billion for the quarter, compared to the consensus estimate of $30.58 billion. During the same quarter in the previous year, the company earned $1.06 EPS. Bank of America's revenue for the quarter was up 3.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Bank of America Corporation will post 4.54 EPS for the current year.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were paid a $0.32 dividend. The ex-dividend date was Friday, September 4th. This is a positive change from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.5%. Bank of America's dividend payout ratio is 30.40%.

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company's consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.

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