Bank of New York Mellon Corp Purchases 2,929,779 Shares of Bank of America Corporation $BAC

Key Points

• Bank of New York Mellon boosted its Bank of America stake by 5.4% in the fourth quarter, buying 2.93 million additional shares and bringing its holding to 57.6 million shares valued at about $3.17 billion.
• Bank of America reported better-than-expected quarterly earnings of $1.11 per share on revenue of $30.27 billion, both topping analyst estimates and rising from a year earlier.
• The bank recently declared a quarterly dividend of $0.28 per share, while Wall Street remains broadly positive with a consensus Moderate Buy rating and a price target of $61.06.

Bank of New York Mellon Corp grew its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 5.4% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 57,619,317 shares of the financial services provider's stock after purchasing an additional 2,929,779 shares during the quarter. Bank of America makes up about 0.6% of Bank of New York Mellon Corp's investment portfolio, making the stock its 21st largest position. Bank of New York Mellon Corp owned 0.79% of Bank of America worth $3,169,062,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of BAC. Legacy Bridge LLC grew its position in Bank of America by 182.3% during the 4th quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider's stock worth $28,000 after acquiring an additional 330 shares during the last quarter. Wiser Advisor Group LLC bought a new stake in Bank of America in the third quarter valued at approximately $27,000. Collier Financial purchased a new stake in shares of Bank of America during the third quarter valued at approximately $30,000. Joseph Group Capital Management purchased a new stake in shares of Bank of America during the fourth quarter valued at approximately $32,000. Finally, HFM Investment Advisors LLC grew its holdings in shares of Bank of America by 566.0% in the fourth quarter. HFM Investment Advisors LLC now owns 626 shares of the financial services provider's stock worth $34,000 after purchasing an additional 532 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Bank of America Price Performance

BAC stock opened at $52.50 on Wednesday. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.81 and a quick ratio of 0.81. Bank of America Corporation has a 1 year low of $43.66 and a 1 year high of $57.55. The firm has a 50-day moving average of $51.20 and a 200 day moving average of $52.30. The company has a market cap of $372.55 billion, a P/E ratio of 12.99, a PEG ratio of 0.87 and a beta of 1.18.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates of $1.00 by $0.11. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The firm had revenue of $30.27 billion for the quarter, compared to the consensus estimate of $29.72 billion. During the same quarter in the prior year, the business earned $0.90 EPS. The business's revenue for the quarter was up 10.7% on a year-over-year basis. On average, sell-side analysts forecast that Bank of America Corporation will post 4.45 EPS for the current year.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, June 5th. Bank of America's payout ratio is 27.72%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on BAC shares. Argus upped their price target on shares of Bank of America from $59.00 to $62.00 and gave the company a "buy" rating in a report on Thursday, April 16th. JPMorgan Chase & Co. decreased their price objective on shares of Bank of America from $61.50 to $57.50 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Robert W. Baird upped their price objective on shares of Bank of America from $56.00 to $58.00 and gave the company a "neutral" rating in a research note on Thursday, April 16th. Erste Group Bank lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Wednesday, March 4th. Finally, UBS Group lifted their price objective on Bank of America from $62.00 to $63.00 in a research report on Wednesday, May 6th. Twenty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $61.06.

Key Bank of America News

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

• Positive Sentiment: Investors are being reminded of Bank of America’s strong deposit franchise, a key structural advantage that can support net interest income and long-term earnings stability. Bank of America's Deposit Franchise Is the Hidden Asset Investors Keep Missing
• Positive Sentiment: A Seeking Alpha piece frames BAC as an attractive banking name for capital deployment, reinforcing the view that the stock still offers value for investors seeking exposure to a large, profitable lender. Bank of America: Let The Capital Flow To Your Portfolio With This Banking Powerhouse
• Neutral Sentiment: A note about Bank of America’s latest analyst update said the price target was left unchanged, which suggests a wait-and-see stance rather than a major shift in the investment case. How A Flat Price Target Is Shaping The Story For Bank Of America (BAC)
• Neutral Sentiment: One reported item says former Epstein banker Paul Morris left Bank of America’s Merrill unit, but the article does not indicate a material business impact on BAC. Former Epstein banker Paul Morris leaves Bank of America's Merrill unit - report
• Negative Sentiment: Broader market coverage shows Wall Street analysts growing more skeptical after the recent rally, which could temper enthusiasm for financial stocks like BAC if sentiment rotates away from stretched valuations. Wall Street Analysts Turn Skeptical After Two-Month Stocks Rally

Insider Transactions at Bank of America

In related news, insider Thomas M. Scrivener sold 50,000 shares of the stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $49.82, for a total value of $2,491,000.00. Following the completion of the transaction, the insider directly owned 227,973 shares in the company, valued at $11,357,614.86. This trade represents a 17.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Bernard A. Mensah sold 94,000 shares of Bank of America stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $46.94, for a total transaction of $4,412,360.00. Following the transaction, the insider directly owned 170,184 shares of the company's stock, valued at approximately $7,988,436.96. This trade represents a 35.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 270,756 shares of company stock valued at $13,622,696 in the last three months. 0.27% of the stock is currently owned by company insiders.

About Bank of America

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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