Bank of America Corporation $BAC Stock: Stokes Capital Advisors LLC Boosts Holdings

Key Points

• Stokes Capital Advisors increased its Bank of America stake by 216.4% in the third quarter, reaching 49,215 shares valued at approximately $2.68 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America exceeded quarterly expectations with $1.21 in EPS and $31.56 billion in revenue, while revenue rose 19.6% year over year. The company also raised its quarterly dividend to $0.32 per share, representing a 2.4% yield.
• Analyst sentiment remains favorable, with 19 Buy ratings and seven Holds producing a “Moderate Buy” consensus and an average price target of $64.22, above the cited $54.27 share price.

Stokes Capital Advisors LLC grew its position in shares of Bank of America Corporation (NYSE:BAC) by 216.4% during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 49,215 shares of the financial services provider's stock after purchasing an additional 33,659 shares during the period. Stokes Capital Advisors LLC's holdings in Bank of America were worth $2,679,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of BAC. Mirador Capital Partners LP raised its holdings in shares of Bank of America by 199.3% in the 3rd quarter. Mirador Capital Partners LP now owns 27,827 shares of the financial services provider's stock valued at $1,515,000 after purchasing an additional 18,531 shares in the last quarter. RFG Bristol Wealth Advisors LLC grew its stake in shares of Bank of America by 39.2% during the third quarter. RFG Bristol Wealth Advisors LLC now owns 26,905 shares of the financial services provider's stock worth $1,464,000 after purchasing an additional 7,574 shares in the last quarter. Sound Income Strategies LLC increased its holdings in Bank of America by 14.7% in the third quarter. Sound Income Strategies LLC now owns 31,190 shares of the financial services provider's stock valued at $1,698,000 after buying an additional 3,991 shares during the last quarter. GK Wealth Management LLC raised its stake in Bank of America by 36.4% in the third quarter. GK Wealth Management LLC now owns 10,444 shares of the financial services provider's stock valued at $568,000 after buying an additional 2,789 shares in the last quarter. Finally, Balefire LLC lifted its holdings in Bank of America by 39.1% during the 3rd quarter. Balefire LLC now owns 21,663 shares of the financial services provider's stock worth $1,179,000 after buying an additional 6,087 shares during the last quarter. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America Trading Up 1.2%

BAC opened at $54.27 on Friday. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. Bank of America Corporation has a 52 week low of $46.12 and a 52 week high of $65.22. The business's 50 day moving average is $60.09 and its two-hundred day moving average is $56.52. The firm has a market cap of $379.49 billion, a price-to-earnings ratio of 12.45, a price-to-earnings-growth ratio of 0.86 and a beta of 1.21.

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 for the quarter, beating the consensus estimate of $1.13 by $0.08. The business had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%. The company's revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.89 earnings per share. On average, research analysts predict that Bank of America Corporation will post 4.61 EPS for the current year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a $0.32 dividend. This is a positive change 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 payout ratio is currently 29.36%.

Wall Street Analyst Weigh In

A number of research firms have recently commented on BAC. Argus set a $70.00 price objective on Bank of America in a report on Wednesday, July 15th. Truist Financial cut their price objective on shares of Bank of America from $65.00 to $62.00 and set a "buy" rating on the stock in a report on Thursday, October 1st. Keefe, Bruyette & Woods boosted their price objective on shares of Bank of America from $67.00 to $70.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Oppenheimer cut shares of Bank of America from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Finally, Barclays lifted their price target on shares of Bank of America from $71.00 to $72.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Nineteen investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $64.22.

Key Stories 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

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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