Bank of America Corporation $BAC Stock Sold by BDF Gestion

Key Points

• BDF Gestion cut its Bank of America stake by 30.9% in the third quarter, selling 31,437 shares and retaining 70,184 shares valued at approximately $3.82 million. Institutional investors collectively own 70.71% of BAC.
• Analysts remain broadly positive, with 20 Buy ratings and six Holds, producing a “Moderate Buy” consensus and an average price target of $62.52, despite some recent target-price reductions.
• Bank of America’s shares traded near $50.47 after the company narrowly missed quarterly earnings and revenue estimates, while its quarterly dividend increased to $0.32 per share. AML-related regulatory penalties, remediation costs and potential lawsuits remain key risks.

BDF Gestion decreased its stake in Bank of America Corporation (NYSE:BAC) by 30.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 70,184 shares of the financial services provider's stock after selling 31,437 shares during the period. BDF Gestion's holdings in Bank of America were worth $3,820,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Turim 21 Investimentos Ltda. acquired a new position in Bank of America during the second quarter worth about $25,000. Cherry Tree Wealth Management LLC lifted its position in shares of Bank of America by 167.6% during the 2nd quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 300 shares during the period. Principia Wealth Advisory LLC lifted its position in shares of Bank of America by 69.9% during the 2nd 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 during the period. Vermillion Wealth Management Inc. boosted its stake in shares of Bank of America by 199.1% during the 1st quarter. Vermillion Wealth Management Inc. now owns 658 shares of the financial services provider's stock worth $32,000 after acquiring an additional 438 shares in the last quarter. Finally, Frazier Financial Advisors LLC purchased a new stake in shares of Bank of America during the 2nd quarter worth approximately $34,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Royal Bank Of Canada lowered their price target on Bank of America from $65.00 to $60.00 and set an "outperform" rating on the stock in a report on Thursday. Jefferies Financial Group reduced their price objective on Bank of America from $75.00 to $70.00 and set a "buy" rating for the company in a report on Thursday, September 24th. HSBC began coverage on Bank of America in a research report on Monday, September 28th. They set a "buy" rating and a $65.00 target price on the stock. Oppenheimer downgraded Bank of America from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. Finally, Argus set a $70.00 target price on Bank of America in a report on Wednesday, July 15th. Twenty investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $62.52.

Key Bank of America News

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

• Positive Sentiment: Analysts and financial commentators continue to view the recent sell-off as a potential buying opportunity, citing Bank of America’s strong underlying profitability, “fortress” balance sheet and capacity to absorb the regulatory settlement without derailing long-term earnings growth. Bank of America Stock Is a Buy after the Recent Sell-Off
• Positive Sentiment: Bank of America Securities reiterated a Buy rating on Aura Minerals, with a $101 price target. The recommendation is positive for the bank’s investment-banking franchise, although it is unlikely to materially affect BAC’s valuation. Aura Minerals Buy Rating
• Neutral Sentiment: Bank of America disclosed that its indirect ownership in Turkish venture investment firm ICU Girisim Sermayesi Yatirim Ortakligi rose to 4.1%. The holding is too small to be a major driver of BAC’s stock. Bank of America Lifts Indirect Stake in ICU
• Neutral Sentiment: Management has said it is addressing the anti-money-laundering shortcomings, while reports indicate the bank is deploying about 1,000 consultants to help remediate AI-related security weaknesses. These actions could limit future risk but may increase near-term costs. Bank of America CEO Addresses Compliance Problem
• Negative Sentiment: Several law firms announced securities-fraud investigations and class-action lawsuits alleging that Bank of America and senior executives misled investors about compliance and AML controls. The filings do not establish liability, but they increase legal, reputational and potential financial risks. Hagens Berman BAC Investigation
• Negative Sentiment: The $1.2 billion Treasury penalty for AML violations remains the clearest immediate overhang. Alongside the latest earnings miss, it raises questions about compliance execution and could lead to additional remediation expenses or regulatory scrutiny. Bank of America Stock After a Regulatory Fine

Bank of America Price Performance

BAC traded down $0.77 during midday trading on Monday, reaching $50.47. 16,450,632 shares of the company's stock were exchanged, compared to its average volume of 37,665,609. Bank of America Corporation has a 1-year low of $46.12 and a 1-year high of $65.22. The stock has a market capitalization of $352.89 billion, a PE ratio of 11.99, a P/E/G ratio of 0.87 and a beta of 1.21. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.82 and a quick ratio of 0.82. The business's 50-day moving average price is $59.05 and its 200 day moving average price is $56.75.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing the consensus estimate of $1.10 by ($0.02). Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The business had revenue of $29.96 billion during the quarter, compared to analyst estimates of $30.58 billion. During the same quarter in the prior year, the company earned $1.06 earnings per share. The firm's revenue for the quarter was up 3.2% compared to the same quarter last year. As a group, equities analysts anticipate that Bank of America Corporation will post 4.54 EPS for the current fiscal year.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were issued a dividend of $0.32 per share. This is a boost from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date was Friday, September 4th. This represents a $1.28 dividend on an annualized basis and a yield of 2.5%. Bank of America's payout ratio is currently 30.40%.

Bank of America Company Profile

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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