J. Safra Sarasin Holding AG Reduces Stake in Bank of America Corporation (NYSE:BAC)

Key Points

• J. Safra Sarasin Holding AG reduced its stake in Bank of America by 46.1%, selling 21,410 shares, leaving them with 25,070 shares valued at approximately $1,046,000.
• Bank of America announced an increase in its quarterly dividend from $0.26 to $0.28, representing a yield of 2.5%.
• Bank of America is launching a stock repurchase plan allowing for the buyback of up to $40 billion of its outstanding shares, indicating that the board believes its stock is undervalued.

J. Safra Sarasin Holding AG trimmed its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 46.1% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 25,070 shares of the financial services provider's stock after selling 21,410 shares during the period. J. Safra Sarasin Holding AG's holdings in Bank of America were worth $1,046,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of the company. Gradient Investments LLC increased its holdings in shares of Bank of America by 7.8% in the 1st quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock valued at $29,061,000 after acquiring an additional 50,296 shares during the period. Employees Retirement System of Texas grew its stake in shares of Bank of America by 12.7% during the 4th quarter. Employees Retirement System of Texas now owns 158,455 shares of the financial services provider's stock worth $69,640,000 after purchasing an additional 17,880 shares during the period. Prosperity Wealth Management Inc. acquired a new stake in Bank of America in the 1st quarter worth about $998,000. Alpha Cubed Investments LLC boosted its holdings 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 acquiring an additional 17,619 shares during the period. Finally, International Assets Investment Management LLC increased its holdings in Bank of America by 170.5% in 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 buying an additional 150,299 shares during the last quarter. 70.71% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on BAC. Argus lowered their target price on Bank of America from $53.00 to $47.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Oppenheimer upped their target price on shares of Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. TD Cowen assumed coverage on shares of Bank of America in a research report on Thursday, May 15th. They set a "buy" rating and a $53.00 price objective on the stock. Wall Street Zen cut shares of Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Finally, Robert W. Baird reiterated a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a report on Friday, June 27th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have given a buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $50.13.

Bank of America Stock Down 1.2%

NYSE:BAC traded down $0.55 during midday trading on Thursday, reaching $44.87. 29,892,744 shares of the stock traded hands, compared to its average volume of 42,687,551. The business has a 50-day moving average of $46.38 and a two-hundred day moving average of $43.79. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The stock has a market capitalization of $332.34 billion, a PE ratio of 13.12, a price-to-earnings-growth ratio of 1.77 and a beta of 1.31. Bank of America Corporation has a 12-month low of $33.06 and a 12-month high of $49.31.

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 (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same period in the previous year, the firm posted $0.83 EPS. The company's quarterly revenue was up 4.3% compared to the same quarter last year. On average, equities analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be paid a $0.28 dividend. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.5%. Bank of America's payout ratio is 30.41%.

Bank of America announced that its board has authorized a share repurchase plan on Wednesday, July 23rd that permits the company to buyback $40.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 11.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity

In related news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction on Friday, August 1st. The stock was sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the sale, the insider directly owned 223,407 shares in the company, valued at $10,180,656.99. The trade was a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.30% of the company's stock.

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.