Deutsche Bank AG Grows Position in Bank of America Corporation (NYSE:BAC)

Key Points

• Deutsche Bank AG has increased its stake in Bank of America Corporation by 45.1%, now owning approximately 48.1 million shares, making it the bank's 15th biggest holding.
• Bank of America recently increased its quarterly dividend from $0.26 to $0.28, resulting in a 2.5% yield and a 30.41% dividend payout ratio.
• Several analysts have boosted their target prices for Bank of America, with UBS raising its target from $46.00 to $50.00 and Citigroup improving theirs from $50.00 to $54.00, indicating a strong positive outlook.

Deutsche Bank AG boosted its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 45.1% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 48,112,090 shares of the financial services provider's stock after purchasing an additional 14,960,086 shares during the period. Bank of America comprises approximately 0.8% of Deutsche Bank AG's investment portfolio, making the stock its 15th biggest holding. Deutsche Bank AG owned approximately 0.64% of Bank of America worth $2,007,718,000 as of its most recent SEC filing.

Other hedge funds also recently added to or reduced their stakes in the company. Vega Investment Solutions purchased a new position in shares of Bank of America in the 4th quarter valued at about $30,000. Marshall & Sterling Wealth Advisors Inc. acquired a new position in shares of Bank of America during the 4th quarter worth approximately $31,000. Spurstone Advisory Services LLC purchased a new position in shares of Bank of America during the 4th quarter valued at approximately $34,000. Glass Jacobson Investment Advisors llc grew its stake in Bank of America by 53.0% in the 4th quarter. Glass Jacobson Investment Advisors llc now owns 797 shares of the financial services provider's stock valued at $35,000 after acquiring an additional 276 shares during the period. Finally, Wood Tarver Financial Group LLC purchased a new stake in Bank of America in the 4th quarter worth $38,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.30% of the company's stock.

Bank of America Trading Up 2.5%

NYSE BAC traded up $1.11 on Friday, reaching $46.03. The stock had a trading volume of 37,117,565 shares, compared to its average volume of 37,639,604. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The stock has a fifty day moving average price of $46.39 and a two-hundred day moving average price of $43.78. Bank of America Corporation has a 12-month low of $33.06 and a 12-month high of $49.31. The firm has a market capitalization of $340.94 billion, a price-to-earnings ratio of 13.46, a P/E/G ratio of 1.74 and a beta of 1.31.

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

Bank of America declared that its board has approved a stock buyback program on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its stock is undervalued.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 2.4%. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's payout ratio is currently 30.41%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on BAC. Cowen began coverage on shares of Bank of America in a research report on Wednesday, May 14th. They issued a "buy" rating on the stock. UBS Group raised their price target on shares of Bank of America from $46.00 to $50.00 and gave the company a "buy" rating in a research note on Wednesday, April 16th. Royal Bank Of Canada set a $53.00 price objective on Bank of America and gave the stock an "outperform" rating in a research note on Monday, June 30th. Phillip Securities cut Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Finally, Hsbc Global Res lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have given a buy rating to the stock. According to MarketBeat, Bank of America presently has an average rating of "Moderate Buy" and a consensus price target of $50.13.

Bank of America 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.