University of Texas Texas AM Investment Management Co. Purchases 54,725 Shares of Bank of America Corporation (NYSE:BAC)

Key Points

• The University of Texas Texas AM Investment Management Co. has increased its holdings in Bank of America (NYSE:BAC) by 28.7%, making it the company's 9th largest position with a value of approximately $10.25 million.
• Bank of America recently announced a $40 billion share buyback program, indicating that its board believes the shares are undervalued, along with a quarterly dividend boost from $0.26 to $0.28.
• Multiple analysts rate Bank of America stock as a 'Moderate Buy,' with a consensus price target of $50.03, while the stock is currently trading around $48.47.

University of Texas Texas AM Investment Management Co. grew its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 28.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 245,701 shares of the financial services provider's stock after buying an additional 54,725 shares during the period. Bank of America makes up about 1.8% of University of Texas Texas AM Investment Management Co.'s holdings, making the stock its 9th biggest holding. University of Texas Texas AM Investment Management Co.'s holdings in Bank of America were worth $10,253,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Gradient Investments LLC boosted its holdings in shares of Bank of America by 7.8% during the first quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock worth $29,061,000 after purchasing an additional 50,296 shares during the period. Employees Retirement System of Texas raised its holdings in Bank of America by 12.7% in the fourth quarter. Employees Retirement System of Texas now owns 158,455 shares of the financial services provider's stock worth $69,640,000 after buying an additional 17,880 shares during the last quarter. Prosperity Wealth Management Inc. purchased a new position in Bank of America in the 1st quarter worth approximately $998,000. Alpha Cubed Investments LLC raised its position in Bank of America by 37.2% in the 1st quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock worth $2,714,000 after buying an additional 17,619 shares during the last quarter. Finally, International Assets Investment Management LLC raised its holdings in shares of Bank of America by 170.5% during the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock valued at $9,951,000 after purchasing an additional 150,299 shares during the last quarter. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America Stock Down 0.8%

BAC traded down $0.38 during trading on Thursday, hitting $47.58. The company had a trading volume of 15,127,816 shares, compared to its average volume of 42,809,656. The company has a market cap of $358.38 billion, a PE ratio of 13.91, a P/E/G ratio of 1.87 and a beta of 1.30. The business has a 50-day moving average of $46.14 and a 200-day moving average of $43.80. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $49.31.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The company had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations of $26.79 billion. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The firm's revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.83 earnings per share. As a group, analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America declared that its board has approved a stock buyback plan on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a $0.28 dividend. This is a boost from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 2.35%. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is currently 32.75%.

Analysts Set New Price Targets

BAC has been the subject of several analyst reports. UBS Group upped their price objective on Bank of America from $46.00 to $50.00 and gave the stock a "buy" rating in a research note on Wednesday, April 16th. Piper Sandler cut their price target on Bank of America from $45.00 to $42.00 and set a "neutral" rating for the company in a report on Wednesday, April 16th. Keefe, Bruyette & Woods dropped their price target on Bank of America from $55.00 to $52.00 and set an "outperform" rating for the company in a research report on Wednesday, April 16th. Cowen began coverage on shares of Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating for the company. Finally, Citigroup boosted their price objective on shares of Bank of America from $50.00 to $54.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have assigned a buy rating to the company's stock. According to data from MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and a consensus target price of $50.13.

Bank of America Company Profile

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.