Bank of America Corporation $BAC Stock Position Reduced by Prime Capital Investment Advisors LLC

Key Points

• Prime Capital Investment Advisors reduced its Bank of America stake by 8.9% in the third quarter, selling 18,887 shares and retaining 192,806 shares valued at approximately $10.5 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America’s latest quarter fell slightly short of expectations, with EPS of $1.08 versus a $1.10 consensus and revenue of $29.96 billion versus $30.58 billion expected. Revenue nevertheless increased 3.2% year over year.
• The bank raised its quarterly dividend to $0.32, equivalent to an annualized $1.28 payout and a 2.5% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $62.82.

Prime Capital Investment Advisors LLC lowered its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 8.9% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 192,806 shares of the financial services provider's stock after selling 18,887 shares during the quarter. Prime Capital Investment Advisors LLC's holdings in Bank of America were worth $10,494,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in BAC. Legal & General Group Plc purchased a new position in shares of Bank of America during the 2nd quarter valued at $2,571,060,000. Amundi increased its stake in Bank of America by 12.5% in the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock worth $2,066,274,000 after buying an additional 4,721,969 shares in the last quarter. Deutsche Bank AG purchased a new stake in Bank of America in the 2nd quarter worth $2,359,172,000. Bank of New York Mellon Corp purchased a new stake in Bank of America in the 2nd quarter worth $2,313,953,000. Finally, Dimensional Fund Advisors LP raised its holdings in Bank of America by 1.8% during the first quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock valued at $1,517,599,000 after acquiring an additional 561,413 shares during the period. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Stock Up 0.4%

Shares of BAC stock opened at $50.59 on Wednesday. The company's fifty day simple moving average is $58.52 and its two-hundred day simple moving average is $56.77. Bank of America Corporation has a 52 week low of $46.12 and a 52 week high of $65.22. The stock has a market cap of $353.77 billion, a P/E ratio of 12.02, a PEG ratio of 0.86 and a beta of 1.21. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.10 by ($0.02). Bank of America had a return on equity of 12.15% and a net margin of 16.80%. The firm had revenue of $29.96 billion during the quarter, compared to the consensus estimate of $30.58 billion. During the same period last year, the firm posted $1.06 earnings per share. The company's revenue for the quarter was up 3.2% compared to the same quarter last year. Analysts predict that Bank of America Corporation will post 4.54 EPS for the current fiscal 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 $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Friday, September 4th. This is a positive change from Bank of America's previous quarterly dividend of $0.28. Bank of America's dividend payout ratio is presently 30.40%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on BAC. Evercore set a $62.00 price objective on Bank of America in a research report on Thursday, October 1st. Citigroup cut their target price on Bank of America from $66.00 to $60.00 and set a "buy" rating for the company in a research report on Thursday, October 15th. Jefferies Financial Group decreased their target price on Bank of America from $75.00 to $70.00 and set a "buy" rating on the stock in a research note on Thursday, September 24th. Morgan Stanley lowered their price target on Bank of America from $67.00 to $61.00 and set an "overweight" rating on the stock in a report on Thursday, October 15th. Finally, Keefe, Bruyette & Woods dropped their price target on Bank of America from $70.00 to $65.00 and set an "outperform" rating for the company in a research note on Thursday, October 15th. Twenty equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $62.82.

Trending Headlines about Bank of America

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

• Positive Sentiment: Bank of America’s second-quarter average loans rose 8% year over year while deposits increased 2%. Despite the uneven growth, net interest income climbed 9%, suggesting the bank is generating stronger returns from its deposit base and lending franchise. Bank of America Deposit Franchise Article
• Positive Sentiment: Bank of America was upgraded to a Buy rating by JLPascual. Other recent commentary indicated that the previously announced regulatory fine and earnings-related weakness may already be reflected in the stock, supporting the potential for a recovery. Bank of America Buy Upgrade
• Neutral Sentiment: The bank launched another investment-grade bond offering, including perpetual notes, shortly after raising $8 billion. The issuance may strengthen funding and capital flexibility, although it also adds financing costs and highlights continued reliance on wholesale markets. Bank of America Bond Sale
• Neutral Sentiment: Bank of America disclosed higher indirect stakes in Qiagen, ICU Girişim Sermayesi and Link Bilgisayar. These appear to be investment or regulatory ownership disclosures rather than changes to the core banking business. Qiagen Stake Disclosure
• Negative Sentiment: Multiple law firms announced or promoted securities-fraud investigations and class actions tied to alleged investor misstatements concerning anti-money-laundering and sanctions-compliance failures. The litigation follows more than $1.2 billion in federal penalties and creates potential legal costs and reputational damage. BAC Securities Class Action Alert
• Negative Sentiment: The latest reported quarter missed consensus estimates on both earnings and revenue, while broad bank stocks remain under pressure from rising Treasury yields and uncertainty over Federal Reserve policy. Bank Stocks Under Pressure

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company's consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.

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