Bank of America Corporation $BAC Stake Boosted by Ruffer LLP

Key Points

• Ruffer LLP increased its stake in Bank of America by 30.2%, owning 2,883,749 shares valued at approximately $136 million, making it the firm's 5th largest position.
• Bank of America announced a quarterly dividend increase from $0.26 to $0.28 per share and has a $40 billion share buyback plan aimed at repurchasing up to 11.1% of its shares.
• Analysts have raised Bank of America’s price targets, with Wells Fargo setting a new objective at $60.00 and a consensus rating of "Moderate Buy."

Ruffer LLP boosted its stake in Bank of America Corporation (NYSE:BAC) by 30.2% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,883,749 shares of the financial services provider's stock after purchasing an additional 668,960 shares during the period. Bank of America comprises 6.0% of Ruffer LLP's investment portfolio, making the stock its 5th largest position. Ruffer LLP's holdings in Bank of America were worth $136,453,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of the stock. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH increased its stake in Bank of America by 6.8% in the 2nd quarter. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH now owns 965,998 shares of the financial services provider's stock worth $45,711,000 after purchasing an additional 61,792 shares during the period. Motive Wealth Advisors increased its stake in Bank of America by 17.9% in the 2nd quarter. Motive Wealth Advisors now owns 5,705 shares of the financial services provider's stock worth $270,000 after purchasing an additional 868 shares during the period. Exeter Financial LLC increased its stake in Bank of America by 1.2% in the 2nd quarter. Exeter Financial LLC now owns 67,162 shares of the financial services provider's stock worth $3,178,000 after purchasing an additional 800 shares during the period. Jeppson Wealth Management LLC increased its stake in Bank of America by 4.3% in the 2nd quarter. Jeppson Wealth Management LLC now owns 55,465 shares of the financial services provider's stock worth $2,625,000 after purchasing an additional 2,273 shares during the period. Finally, LeConte Wealth Management LLC purchased a new position in Bank of America in the 2nd quarter worth approximately $332,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

BAC has been the subject of several research analyst reports. Wells Fargo & Company increased their price objective on Bank of America from $56.00 to $60.00 and gave the stock an "overweight" rating in a report on Tuesday, September 16th. The Goldman Sachs Group increased their price objective on Bank of America from $46.00 to $52.00 and gave the stock a "buy" rating in a report on Tuesday, June 10th. Royal Bank Of Canada set a $53.00 price objective on Bank of America and gave the stock an "outperform" rating in a report on Monday, June 30th. Baird R W cut Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Finally, Wall Street Zen upgraded Bank of America from a "sell" rating to a "hold" rating in a report on Saturday, September 13th. Sixteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $50.92.

Insiders Place Their Bets

In related 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 transaction of $6,762,177.87. Following the completion of the transaction, the insider owned 223,407 shares of the company's stock, valued at $10,180,656.99. This trade represents a 39.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is currently owned by company insiders.

Bank of America Trading Down 0.1%

BAC opened at $51.67 on Thursday. The stock has a market cap of $382.69 billion, a PE ratio of 15.11, a PEG ratio of 2.01 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. The business has a 50 day moving average of $48.87 and a 200-day moving average of $44.73. Bank of America Corporation has a 52 week low of $33.06 and a 52 week high of $52.88.

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

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a yield of 2.2%. Bank of America's dividend payout ratio is 32.75%.

Bank of America declared that its board has authorized a share buyback plan on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

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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