Bank of America Corporation $BAC Stock Purchased by Iowa State Bank

Key Points

• Iowa State Bank increased its Bank of America stake by 10.8% in the third quarter, adding 10,089 shares to hold 103,828 shares valued at approximately $5.65 million. Institutional investors own about 70.7% of BAC.
• Bank of America reported quarterly EPS of $1.21, exceeding estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion. The company also increased its quarterly dividend from $0.28 to $0.32 per share.
• Analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average price target of $64.12, compared with the reported share price of $54.12.

Iowa State Bank boosted its holdings in shares of Bank of America Corporation (NYSE:BAC) by 10.8% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 103,828 shares of the financial services provider's stock after purchasing an additional 10,089 shares during the period. Iowa State Bank's holdings in Bank of America were worth $5,651,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in the business. Turim 21 Investimentos Ltda. acquired a new position in shares of Bank of America in the 2nd quarter valued at about $25,000. Abound Financial LLC acquired a new stake in Bank of America during the fourth quarter worth about $26,000. Cherry Tree Wealth Management LLC grew its holdings in Bank of America by 167.6% during the second quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider's stock worth $27,000 after acquiring an additional 300 shares during the period. Principia Wealth Advisory LLC raised its position in Bank of America by 69.9% during the second quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider's stock valued at $30,000 after acquiring an additional 218 shares in the last quarter. Finally, Frazier Financial Advisors LLC acquired a new position in Bank of America in the second quarter valued at approximately $34,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Price Performance

NYSE BAC traded up $0.12 on Tuesday, hitting $54.12. The company had a trading volume of 11,643,858 shares, compared to its average volume of 37,105,500. The company has a market capitalization of $378.48 billion, a PE ratio of 12.41, a PEG ratio of 0.86 and a beta of 1.21. The company's fifty day moving average price is $60.73 and its 200-day moving average price is $56.40. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. Bank of America Corporation has a 12-month low of $46.12 and a 12-month high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.08. The business had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The company's revenue was up 19.6% compared to the same quarter last year. During the same period last year, the firm posted $0.89 earnings per share. As a group, analysts predict that Bank of America Corporation will post 4.63 earnings per share 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. This is an increase from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date was Friday, September 4th. This represents a $1.28 annualized dividend and a yield of 2.4%. Bank of America's dividend payout ratio (DPR) is presently 29.36%.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Royal Bank Of Canada upped their price objective on Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Rothschild & Co Redburn set a $72.00 target price on shares of Bank of America in a research note on Tuesday. Jefferies Financial Group lowered their price target on shares of Bank of America from $75.00 to $70.00 and set a "buy" rating on the stock in a report on Thursday, September 24th. Citigroup raised their price target on shares of Bank of America from $62.00 to $66.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bank of America in a report on Tuesday, July 21st. Twenty equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $64.12.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: JPMorgan maintained its Overweight rating on BAC, reinforcing confidence in the bank’s valuation and earnings outlook. JPMorgan Reiterates Overweight Rating on Bank of America
• Positive Sentiment: Bank of America strategists said two-year Treasury yields could rise further as economic data remains robust. Higher rates can support banks’ net interest income, although the benefit depends on deposit and loan pricing. Two-Year Treasury Yields Could Rise Further Due to Robust Economy
• Positive Sentiment: A market screen identified BAC as an oversold large-cap name that could benefit if investors rotate beyond technology stocks. This may support near-term buying interest, though it is a technical rather than fundamental catalyst. Five Oversold Corners of the Market
• Neutral Sentiment: Bank of America launched expanded fraud-prevention education for small businesses, including checklists, online content and webinars. The initiative may strengthen client relationships and trust, but it is unlikely to materially affect near-term earnings. Bank of America Expands Fraud Education
• Neutral Sentiment: Recent Merrill Lynch disclosures showing changes in holdings of several Turkish companies appear to be routine client or subsidiary trading activity, with no clear direct effect on BAC’s fundamentals.
• Negative Sentiment: Investor commentary remains cautious ahead of third-quarter results, citing evolving risks that could affect credit quality, expenses, capital markets activity and the outlook for interest-sensitive revenue. Bank of America: As Q3 Earnings Near, Cautious of Evolving Risks

Bank of America 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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