SVB Wealth LLC Sells 19,201 Shares of Bank of America Corporation $BAC

Key Points

• SVB Wealth LLC reduced its stake in Bank of America by 15.8%, selling 19,201 shares, while other hedge funds like Deutsche Bank and Northern Trust increased their holdings significantly during the same period.
• Bank of America announced a quarterly dividend increase to $0.28 per share and approved a stock buyback program allowing up to $40 billion in share repurchases, indicating confidence in the company's valuation.
• Despite recent rating changes, Bank of America has an average rating of "Moderate Buy" from analysts, with 17 ratings of "Buy" and an average target price of $50.13.

SVB Wealth LLC lessened its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 15.8% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 102,449 shares of the financial services provider's stock after selling 19,201 shares during the quarter. SVB Wealth LLC's holdings in Bank of America were worth $4,275,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in BAC. Brighton Jones LLC increased its position in Bank of America by 30.0% during the 4th quarter. Brighton Jones LLC now owns 108,872 shares of the financial services provider's stock valued at $4,785,000 after purchasing an additional 25,143 shares during the period. Bank Pictet & Cie Europe AG increased its position in Bank of America by 35.7% during the 4th quarter. Bank Pictet & Cie Europe AG now owns 860,005 shares of the financial services provider's stock valued at $37,797,000 after purchasing an additional 226,246 shares during the period. Hancock Whitney Corp increased its position in Bank of America by 0.3% during the 4th quarter. Hancock Whitney Corp now owns 89,203 shares of the financial services provider's stock valued at $3,920,000 after purchasing an additional 260 shares during the period. Voya Financial Advisors Inc. increased its position in Bank of America by 0.9% during the 4th quarter. Voya Financial Advisors Inc. now owns 28,423 shares of the financial services provider's stock valued at $1,248,000 after purchasing an additional 263 shares during the period. Finally, Hayek Kallen Investment Management increased its position in Bank of America by 2.0% during the 4th quarter. Hayek Kallen Investment Management now owns 12,022 shares of the financial services provider's stock valued at $528,000 after purchasing an additional 233 shares during the period. Institutional investors own 70.71% of the company's stock.

Bank of America Stock Up 2.5%

NYSE BAC traded up $1.2250 during mid-day trading on Friday, hitting $49.4850. The company's stock had a trading volume of 45,055,019 shares, compared to its average volume of 33,213,872. The company's 50 day simple moving average is $47.06 and its 200 day simple moving average is $43.81. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $49.66. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The firm has a market capitalization of $366.53 billion, a price-to-earnings ratio of 14.47, a PEG ratio of 1.92 and a beta of 1.31.

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

Bank of America declared that its Board of Directors has authorized a stock repurchase 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 repurchase up to 11.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its shares are undervalued.

Bank of America Increases Dividend

The firm 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 $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is 30.41%.

Insider Transactions at Bank of America

In related news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction on Friday, August 1st. The shares were 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 of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.30% of the company's stock.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Morgan Stanley increased their target price on shares of Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. HSBC downgraded shares of Bank of America from a "buy" rating to a "hold" rating and raised their price objective for the stock from $47.00 to $51.00 in a research report on Monday, July 7th. Hsbc Global Res downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Royal Bank Of Canada set a $53.00 price objective on shares of Bank of America and gave the stock an "outperform" rating in a research report on Monday, June 30th. Finally, Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price objective on shares of Bank of America in a research report on Friday, June 27th. Seventeen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $50.13.

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.