Bank OZK Purchases 11,161 Shares of Bank of America Corporation $BAC

Key Points

• Bank OZK increased its Bank of America stake by 10.2% in the second quarter, purchasing 11,161 shares and bringing its holdings to 120,468 shares valued at approximately $6.86 million.
• Bank of America reported quarterly EPS of $1.21, beating estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $64.08.
• The bank raised its quarterly dividend to $0.32 per share, or $1.28 annually, representing a 2.1% yield; shares recently traded near $62.38.

Bank OZK increased its position in shares of Bank of America Corporation (NYSE:BAC) by 10.2% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 120,468 shares of the financial services provider's stock after purchasing an additional 11,161 shares during the period. Bank of America makes up 2.0% of Bank OZK's portfolio, making the stock its 11th largest holding. Bank OZK's holdings in Bank of America were worth $6,864,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Turim 21 Investimentos Ltda. bought a new position in shares of Bank of America in the second quarter worth about $25,000. Abound Financial LLC bought a new stake in Bank of America during the 4th quarter valued at about $26,000. Wiser Advisor Group LLC purchased a new stake in Bank of America in the 3rd quarter valued at about $27,000. CrossGen Wealth LLC purchased a new stake in Bank of America in the 4th quarter valued at about $30,000. Finally, Vermillion Wealth Management Inc. grew its stake in Bank of America by 199.1% in the 1st quarter. Vermillion Wealth Management Inc. now owns 658 shares of the financial services provider's stock worth $32,000 after acquiring an additional 438 shares in the last quarter. 70.71% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on BAC. Morgan Stanley raised their target price on shares of Bank of America from $61.00 to $67.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. Argus set a $70.00 price target on Bank of America in a report on Wednesday, July 15th. Wells Fargo & Company increased their price objective on Bank of America from $67.00 to $69.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Royal Bank Of Canada raised their price objective on Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a report on Wednesday, July 15th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $75.00 target price on shares of Bank of America in a research report on Tuesday, July 14th. Twenty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $64.08.

Bank of America Stock Up 2.0%

Shares of BAC stock opened at $62.38 on Friday. Bank of America Corporation has a 1-year low of $46.12 and a 1-year high of $65.22. The stock's fifty day moving average price is $61.18 and its 200 day moving average price is $54.92. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The company has a market cap of $436.21 billion, a price-to-earnings ratio of 14.31, a price-to-earnings-growth ratio of 0.99 and a beta of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.13 by $0.08. The company had revenue of $31.56 billion during the quarter, compared to analysts' expectations of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The firm's revenue was up 19.6% compared to the same quarter last year. During the same period last year, the business posted $0.89 earnings per share. On average, research analysts expect that Bank of America Corporation will post 4.68 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 2.1%. This is an increase from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. Bank of America's dividend payout ratio is currently 25.69%.

Key Stories Impacting Bank of America

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

• Positive Sentiment: Bank of America’s artificial-intelligence initiatives and branch expansion are expected to improve operating efficiency and customer service. The potential for productivity gains supports the long-term earnings case, although elevated expenses remain a risk. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Positive Sentiment: Strong inflows into gold and cryptocurrency funds reported by BofA suggest elevated client demand for investment products. That activity could benefit the bank’s wealth-management, brokerage and trading businesses, though the impact on BAC’s earnings is indirect.
• Neutral Sentiment: Bank of America disclosed holdings of approximately 4.69% and 5.87% in QIAGEN, reflecting regulatory notifications about its investment position. The disclosures may attract attention but do not materially change BAC’s core banking outlook. Bank of America Discloses 5.87% Stake in QIAGEN
• Neutral Sentiment: BofA strategists warned that global equities could face an autumn “reality check” tied to the U.S. midterm elections and geopolitical developments. A market pullback could weigh on BAC through lower investment-banking, asset-management and trading activity. Bank of America Warns of an Autumn Reality Check
• Negative Sentiment: JPMorgan is hiring senior technology dealmaker David Fishman from Bank of America. Losing an experienced M&A executive could weaken BAC’s technology investment-banking franchise and adds to competitive pressure. JPMorgan Hiring Bank of America’s David Fishman
• Negative Sentiment: The SEC is reportedly investigating margin lending to hedge fund Situational Awareness after a 67% drawdown, with Bank of America among the subpoenaed banks. Potential legal, credit and reputational risks could pressure sentiment. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: BAC is challenging proposed changes to the Federal Reserve’s global systemically important bank capital surcharge. Higher capital requirements could constrain lending, reduce balance-sheet flexibility and pressure returns on equity. Bank of America Joins Clash Over Fed GSIB Capital Rule

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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