Teewinot Capital Advisers L.L.C. Reduces Position in Bank of America Corporation $BAC

Key Points

• Teewinot Capital Advisers L.L.C. reduced its position in Bank of America by 47.6% in Q1, bringing its holdings to 779,151 shares, valued at approximately $32.5 million.
• Bank of America has announced a quarterly dividend increase to $0.28 per share, reflecting an annualized yield of 2.3% and a payout ratio of 30.41%.
• The company initiated a $40 billion stock buyback program, allowing it to repurchase up to 11.1% of its outstanding shares, typically indicating management's belief in the stock's undervaluation.

Teewinot Capital Advisers L.L.C. cut its position in Bank of America Corporation (NYSE:BAC - Free Report) by 47.6% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 779,151 shares of the financial services provider's stock after selling 706,993 shares during the quarter. Bank of America makes up 3.3% of Teewinot Capital Advisers L.L.C.'s investment portfolio, making the stock its 16th biggest holding. Teewinot Capital Advisers L.L.C.'s holdings in Bank of America were worth $32,514,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in BAC. Deutsche Bank AG boosted its position in shares of Bank of America by 45.1% in the 1st quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock valued at $2,007,718,000 after purchasing an additional 14,960,086 shares during the period. Theleme Partners LLP acquired a new position in Bank of America in the 4th quarter valued at about $263,449,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Bank of America by 12.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,092,517 shares of the financial services provider's stock valued at $1,981,816,000 after acquiring an additional 5,092,504 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Bank of America in the 4th quarter valued at about $217,979,000. Finally, GAMMA Investing LLC increased its position in Bank of America by 4,414.4% in the 1st quarter. GAMMA Investing LLC now owns 4,654,022 shares of the financial services provider's stock valued at $194,212,000 after acquiring an additional 4,550,930 shares during the period. 70.71% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently issued reports on BAC. Robert W. Baird restated a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a research report on Friday, June 27th. Phillip Securities cut Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Truist Financial boosted their price target on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 9th. Oppenheimer boosted their price target on Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a research report on Wednesday, July 30th. Finally, The Goldman Sachs Group boosted their price target 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. Sixteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $50.39.

Bank of America Price Performance

Shares of BAC traded down $0.13 during mid-day trading on Wednesday, hitting $50.17. The company's stock had a trading volume of 31,598,243 shares, compared to its average volume of 41,887,168. 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 50-day simple moving average of $48.03 and a 200 day simple moving average of $44.15. The firm has a market capitalization of $371.57 billion, a P/E ratio of 14.67, a P/E/G ratio of 1.92 and a beta of 1.34. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $50.92.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The business had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations 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 quarter in the prior year, the firm posted $0.83 EPS. Analysts predict that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued 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 payout ratio is currently 32.75%.

Bank of America announced that its board has authorized a share repurchase program on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in outstanding 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 an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the company'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 sale, the insider owned 223,407 shares in the company, valued at $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.30% of the stock is currently owned by corporate insiders.

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.