Bank of America Corporation $BAC Stock Purchased by Cypress Asset Management Inc. TX

Key Points

• Cypress Asset Management increased its Bank of America stake by 139.8% in the third quarter, adding 25,639 shares to reach 43,981 shares valued at approximately $2.39 million.
• Institutional investors own 70.71% of BAC, while analyst sentiment remains favorable overall: the stock has a “Moderate Buy” consensus rating and an average price target of $64.22.
• Bank of America raised its quarterly dividend to $0.32 per share, or $1.28 annually, but investors face slower expected EPS growth and a $39 million Merrill cash-sweep settlement ahead of upcoming earnings.

Cypress Asset Management Inc. TX boosted its holdings in shares of Bank of America Corporation (NYSE:BAC) by 139.8% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 43,981 shares of the financial services provider's stock after buying an additional 25,639 shares during the quarter. Cypress Asset Management Inc. TX's holdings in Bank of America were worth $2,394,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Legal & General Group Plc purchased a new position in Bank of America during the second quarter valued at $2,571,060,000. Amundi increased its position in Bank of America by 12.5% in the first 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 second quarter worth about $2,359,172,000. Bank of New York Mellon Corp bought a new position in shares of Bank of America in the second quarter worth about $2,313,953,000. Finally, Dimensional Fund Advisors LP raised its stake in shares of Bank of America by 1.8% in the first quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock worth $1,517,599,000 after buying an additional 561,413 shares during the period. Institutional investors own 70.71% of the company's stock.

Key Stories Impacting Bank of America

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

• Positive Sentiment: A favorable shift in Federal Reserve policy could support Bank of America’s net interest income, prompting a rating upgrade and strengthening the bullish case for BAC. Bank of America: Fed Policy Shift Creates NII Upside
• Positive Sentiment: TD Cowen initiated coverage with a “hold” rating and a $60 price target, implying roughly 12% upside from the referenced price. Although not bullish, the target suggests analysts see recovery potential. TD Cowen initiates Bank of America coverage
• Positive Sentiment: Management highlighted artificial intelligence investments aimed at improving and personalizing customer service. Over time, better efficiency and client engagement could support revenue growth and profitability. How Bank of America is using AI to reinvent the customer experience
• Neutral Sentiment: Bank of America raised its price target on Marvell Technology while maintaining a buy rating, reflecting continued investment-banking and research activity but offering little direct earnings impact for BAC. Marvell price target raised by Bank of America
• Neutral Sentiment: Recent disclosures show Bank of America reduced holdings in Lakefront Biotherapeutics and Gentas, while increasing its stake in ICU Venture Capital Trust. These portfolio transactions are unlikely to materially affect BAC’s fundamentals. Bank of America trims Lakefront Biotherapeutics stake
• Negative Sentiment: Analysts expect EPS growth to slow from approximately 36% to single digits. Investors will focus on October 14 earnings for evidence that revenue growth, margins and net interest income can offset decelerating profit momentum. Bank of America EPS growth expected to slow
• Negative Sentiment: Bank of America agreed to a $39 million Merrill cash-sweep settlement. The financial cost is manageable relative to BAC’s size, but the resolution adds regulatory and litigation overhang ahead of earnings. Bank of America agrees to Merrill cash sweep settlement

Analyst Ratings Changes

A number of research analysts recently issued reports on BAC shares. Oppenheimer downgraded Bank of America from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bank of America in a report on Tuesday, July 21st. HSBC assumed coverage on shares of Bank of America in a research report on Monday, September 28th. They issued a "buy" rating and a $65.00 price target for the company. Evercore set a $62.00 price objective on shares of Bank of America in a research note on Thursday, October 1st. Finally, TD Cowen began coverage on shares of Bank of America in a research report on Thursday. They set a "hold" rating and a $60.00 price objective on the stock. Nineteen research 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 currently has a consensus rating of "Moderate Buy" and a consensus target price of $64.22.

Bank of America Stock Performance

BAC opened at $53.51 on Friday. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The stock has a market capitalization of $374.15 billion, a price-to-earnings ratio of 12.27, a PEG ratio of 0.86 and a beta of 1.21. The company has a fifty day moving average of $60.25 and a 200 day moving average of $56.54. Bank of America Corporation has a fifty-two week low of $46.12 and a fifty-two week high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. During the same quarter in the prior year, the firm earned $0.89 EPS. The business's revenue was up 19.6% on a year-over-year basis. As a group, sell-side analysts forecast that Bank of America Corporation will post 4.61 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 2.4%. The ex-dividend date was Friday, September 4th. This is a boost from Bank of America's previous quarterly dividend of $0.28. Bank of America's payout ratio is currently 29.36%.

Bank of America Company Profile

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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