Bank of America Corporation $BAC Stock: Castle Rock Wealth Management LLC Grows Stake

Key Points

• Castle Rock Wealth Management increased its Bank of America stake by 207.6% in the third quarter, owning 49,553 shares valued at approximately $2.7 million. Institutional investors and hedge funds collectively hold 70.71% of BAC’s stock.
• Wall Street maintains a “Moderate Buy” consensus, with 19 Buy ratings and seven Holds and an average price target of $64.22, above the reported $54.27 opening price.
• Bank of America recently exceeded quarterly earnings and revenue expectations and raised its quarterly dividend to $0.32 per share, though analysts warn that weaker investment-banking fees, higher credit risks and cautious investor sentiment could weigh on near-term performance.

Castle Rock Wealth Management LLC raised its holdings in shares of Bank of America Corporation (NYSE:BAC) by 207.6% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 49,553 shares of the financial services provider's stock after buying an additional 33,442 shares during the period. Castle Rock Wealth Management LLC's holdings in Bank of America were worth $2,697,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently modified their holdings of BAC. Bamco Inc. NY raised its stake in shares of Bank of America by 45.4% during the 2nd quarter. Bamco Inc. NY now owns 40,994 shares of the financial services provider's stock worth $2,336,000 after purchasing an additional 12,794 shares in the last quarter. E Fund Management Co. Ltd. bought a new stake in shares of Bank of America in the 2nd quarter valued at approximately $4,089,000. Bernicke Wealth Management Ltd. acquired a new stake in Bank of America in the second quarter valued at approximately $2,132,000. Legacy Private Trust Co. lifted its stake in Bank of America by 11.7% in the third quarter. Legacy Private Trust Co. now owns 115,136 shares of the financial services provider's stock valued at $6,267,000 after acquiring an additional 12,016 shares during the last quarter. Finally, Renaissance Technologies LLC bought a new position in shares of Bank of America during the 1st quarter valued at $67,507,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on BAC. Rothschild & Co Redburn set a $72.00 price objective on shares of Bank of America in a report on Tuesday. Royal Bank Of Canada lifted their price target on shares of Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Argus set a $70.00 price target on shares of Bank of America in a report on Wednesday, July 15th. HSBC began coverage on shares of Bank of America in a report on Monday, September 28th. They issued a "buy" rating and a $65.00 price target for the company. Finally, Barclays lifted 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. Nineteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $64.22.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Analysts expect higher net interest income and solid trading performance to support third-quarter results. A recent analysis also argues that a Federal Reserve policy shift could create additional NII upside for Bank of America. Bank of America: Fed Policy Shift Creates NII Upside
• Positive Sentiment: TD Cowen began coverage with a $60 price target, implying potential upside from recent trading levels, although it assigned a Hold rating. TD Cowen coverage of Bank of America
• Positive Sentiment: Bank of America’s continued use of artificial intelligence to personalize customer service and improve operating efficiency could provide longer-term competitive benefits. How Bank of America is using AI
• Neutral Sentiment: Wall Street’s third-quarter estimates point to a mixed report: stronger NII and trading may be offset by weaker investment-banking fees and higher credit risks. Investors are focused on whether management can maintain earnings momentum as year-over-year EPS growth is expected to slow sharply from the prior period. BAC shares ahead of Q3 earnings
• Neutral Sentiment: The appointment of Jeff Crabtree as president of the Sarasota/Manatee region is a routine leadership change with limited near-term earnings impact. Bank of America names Jeff Crabtree president
• Negative Sentiment: Bank of America agreed to a $39 million Merrill cash-sweep settlement, creating a modest legal and regulatory expense. Merrill cash sweep settlement
• Negative Sentiment: Chief equity strategist Michael Hartnett said investors are keeping substantial cash in money-market funds until sustained Fed rate cuts begin, signaling cautious risk appetite that could limit near-term support for bank shares. Investors need sustained Fed cuts

Bank of America Stock Up 1.2%

BAC opened at $54.27 on Friday. Bank of America Corporation has a fifty-two week low of $46.12 and a fifty-two week high of $65.22. The company has a market capitalization of $379.49 billion, a P/E ratio of 12.45, a P/E/G ratio of 0.86 and a beta of 1.21. The stock has a fifty day moving average of $60.09 and a 200-day moving average of $56.52. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83.

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 for the quarter, topping the consensus estimate of $1.13 by $0.08. The business had revenue of $31.56 billion during the quarter, compared to analysts' expectations of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business's revenue was up 19.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.89 EPS. On average, equities analysts expect that Bank of America Corporation will post 4.61 EPS for the current year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were paid a dividend of $0.32 per share. 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 dividend on an annualized basis and a yield of 2.4%. Bank of America's dividend payout ratio is currently 29.36%.

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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