Bank of America Corporation $BAC Stake Increased by Fulcrum Asset Management LLP

Key Points

• Fulcrum Asset Management increased its Bank of America stake by 56.9% in the second quarter, bringing its holdings to 87,717 shares valued at approximately $5.1 million. Institutional investors and hedge funds own 70.71% of BAC’s outstanding stock.
• Bank of America reported quarterly EPS of $1.21, exceeding the $1.13 consensus estimate, while revenue rose 19.6% year over year to $31.56 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $64.08.
• The bank raised its quarterly dividend to $0.32 per share, equivalent to an annualized dividend of $1.28 and a 2.1% yield. Potential risks include regulatory scrutiny over margin lending, higher capital requirements and the loss of a senior technology investment-banking executive.

Fulcrum Asset Management LLP boosted its stake in Bank of America Corporation (NYSE:BAC) by 56.9% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 87,717 shares of the financial services provider's stock after acquiring an additional 31,824 shares during the period. Fulcrum Asset Management LLP's holdings in Bank of America were worth $5,077,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in BAC. Turim 21 Investimentos Ltda. acquired a new stake in shares of Bank of America in the 2nd quarter valued at about $25,000. Abound Financial LLC bought a new stake in Bank of America in the fourth quarter valued at about $26,000. Wiser Advisor Group LLC bought a new stake in Bank of America in the third quarter valued at about $27,000. CrossGen Wealth LLC acquired a new stake in Bank of America during the fourth quarter valued at approximately $30,000. Finally, Frazier Financial Advisors LLC acquired a new stake in Bank of America during the second quarter valued at approximately $34,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Bank of America News Roundup

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

• Positive Sentiment: Bank of America’s artificial-intelligence initiatives and branch expansion are expected to improve operating efficiency and customer service. The potential for productivity gains supports the long-term earnings case, although elevated expenses remain a risk. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Positive Sentiment: Strong inflows into gold and cryptocurrency funds reported by BofA suggest elevated client demand for investment products. That activity could benefit the bank’s wealth-management, brokerage and trading businesses, though the impact on BAC’s earnings is indirect.
• Neutral Sentiment: Bank of America disclosed holdings of approximately 4.69% and 5.87% in QIAGEN, reflecting regulatory notifications about its investment position. The disclosures may attract attention but do not materially change BAC’s core banking outlook. Bank of America Discloses 5.87% Stake in QIAGEN
• Neutral Sentiment: BofA strategists warned that global equities could face an autumn “reality check” tied to the U.S. midterm elections and geopolitical developments. A market pullback could weigh on BAC through lower investment-banking, asset-management and trading activity. Bank of America Warns of an Autumn Reality Check
• Negative Sentiment: JPMorgan is hiring senior technology dealmaker David Fishman from Bank of America. Losing an experienced M&A executive could weaken BAC’s technology investment-banking franchise and adds to competitive pressure. JPMorgan Hiring Bank of America’s David Fishman
• Negative Sentiment: The SEC is reportedly investigating margin lending to hedge fund Situational Awareness after a 67% drawdown, with Bank of America among the subpoenaed banks. Potential legal, credit and reputational risks could pressure sentiment. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: BAC is challenging proposed changes to the Federal Reserve’s global systemically important bank capital surcharge. Higher capital requirements could constrain lending, reduce balance-sheet flexibility and pressure returns on equity. Bank of America Joins Clash Over Fed GSIB Capital Rule

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on BAC. Citigroup lifted their target price on Bank of America from $62.00 to $66.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Truist Financial lifted their price objective on shares of Bank of America from $64.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 15th. UBS Group boosted their target price on shares of Bank of America from $68.00 to $70.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Barclays increased their target price on shares of Bank of America from $71.00 to $72.00 and gave the stock an "overweight" rating in a report on Wednesday, July 15th. Finally, Evercore set a $63.00 price target on shares of Bank of America and gave the company an "outperform" rating in a report on Monday, July 6th. Twenty-one analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, Bank of America currently has an average rating of "Moderate Buy" and a consensus target price of $64.08.

Bank of America Price Performance

NYSE BAC opened at $62.38 on Friday. The company has a 50-day moving average price of $61.18 and a two-hundred day moving average price of $54.92. The stock has a market cap of $436.21 billion, a price-to-earnings ratio of 14.31, a price-to-earnings-growth ratio of 0.99 and a beta of 1.17. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. Bank of America Corporation has a 52 week low of $46.12 and a 52 week high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The business had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. During the same period in the previous year, the firm posted $0.89 earnings per share. The business's revenue was up 19.6% on a year-over-year basis. Analysts forecast that Bank of America Corporation will post 4.68 EPS for the current year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.1%. This is a positive change from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, September 4th. Bank of America's dividend payout ratio is 25.69%.

Bank of America Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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