BDF Gestion Sells 11,425 Shares of Bank of America Corporation $BAC

Key Points

• BDF Gestion reduced its Bank of America stake by 10.1% in the second quarter, selling 11,425 shares and retaining 101,621 shares worth approximately $5.79 million.
• Bank of America raised its quarterly dividend to $0.32 per share from $0.28, implying a $1.28 annualized payout and a 2.0% yield.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $64.08; however, regulatory compliance costs and the loss of a technology-banking executive remain potential risks.

BDF Gestion trimmed its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 10.1% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 101,621 shares of the financial services provider's stock after selling 11,425 shares during the period. Bank of America accounts for approximately 0.7% of BDF Gestion's investment portfolio, making the stock its 29th biggest position. BDF Gestion's holdings in Bank of America were worth $5,790,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in BAC. Vanguard Group Inc. raised its holdings in shares of Bank of America by 3.7% in the 4th quarter. Vanguard Group Inc. now owns 651,076,825 shares of the financial services provider's stock valued at $35,809,225,000 after purchasing an additional 23,351,183 shares during the period. Norges Bank acquired a new position in Bank of America during the fourth quarter worth approximately $4,774,210,000. Bank of New York Mellon Corp increased its position in Bank of America by 5.4% during the fourth quarter. Bank of New York Mellon Corp now owns 57,619,317 shares of the financial services provider's stock worth $3,169,062,000 after buying an additional 2,929,779 shares during the last quarter. Fisher Asset Management LLC raised its stake in Bank of America by 2.1% in the fourth quarter. Fisher Asset Management LLC now owns 53,783,821 shares of the financial services provider's stock valued at $2,958,110,000 after buying an additional 1,105,833 shares during the period. Finally, Deutsche Bank AG lifted its position in shares of Bank of America by 5.9% in the fourth quarter. Deutsche Bank AG now owns 47,172,503 shares of the financial services provider's stock valued at $2,594,488,000 after buying an additional 2,611,776 shares during the last quarter. 70.71% of the stock is owned by institutional investors.

Bank of America Price Performance

NYSE:BAC opened at $62.96 on Wednesday. Bank of America Corporation has a 52 week low of $44.75 and a 52 week high of $63.54. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The firm's 50-day simple moving average is $57.92 and its 200 day simple moving average is $53.67. The firm has a market cap of $440.24 billion, a price-to-earnings ratio of 14.44, a P/E/G ratio of 1.00 and a beta of 1.17.

Bank of America Increases Dividend

The firm also recently announced 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 is a boost from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, September 4th. Bank of America's payout ratio is 25.69%.

Wall Street Analysts Forecast Growth

BAC has been the topic of a number of recent analyst reports. Oppenheimer lowered Bank of America from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. UBS Group upped their price objective on shares of Bank of America from $68.00 to $70.00 and gave the company a "buy" rating in a report on Monday. Piper Sandler raised their target price on shares of Bank of America from $53.00 to $59.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Daiwa Securities Group upped their price target on shares of Bank of America from $58.00 to $61.00 and gave the company an "overweight" rating in a research note on Tuesday, April 28th. Finally, Wells Fargo & Company raised their price objective on shares of Bank of America from $67.00 to $69.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Twenty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $64.08.

Bank of America News Roundup

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

• Positive Sentiment: Steeper yield curve supports net interest income. Coverage of Bank of America highlights the potential benefit of higher long-term yields relative to short-term rates, which can improve lending spreads and support revenue growth across the bank’s large deposit and loan base. Why Is Bank of America Tracking the Yield Story?
• Positive Sentiment: UBS reaffirmed its Buy rating on BAC. Continued support from a major investment bank reinforces the bullish view on Bank of America’s earnings outlook and valuation. UBS Reaffirms Their Buy Rating on Bank of America
• Positive Sentiment: Expansion of investment-banking coverage could improve fee growth. Bank of America appointed new leaders for its Africa and Benelux franchises, signaling efforts to win more corporate and investment-banking business in those regions. Bank of America Taps New Africa, Benelux Investment Bank Leads
• Neutral Sentiment: AI investment is a broader, indirect tailwind. BofA’s forecast for more than $1.2 trillion in hyperscaler AI capital spending could support markets and transaction activity, although the reports primarily benefit semiconductor companies rather than directly changing BAC’s fundamentals. Hyperscaler Capex Tops $1.2 Trillion
• Negative Sentiment: Compliance costs remain an overhang. A new disclosure regarding the OCC’s 2024 consent order said a resolution could include monetary penalties, creating uncertainty around expenses and regulatory risk. Bank of America’s New Disclosure Highlights Compliance Risk
• Negative Sentiment: Citi hired a Bank of America technology-banking executive. The departure of Rohan Sen after 11 years could weaken BAC’s technology-services coverage, though the financial impact is likely limited unless additional senior departures follow. Citi Hires Bank of America’s Rohan Sen

Bank of America Profile

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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