BDF Gestion Trims Holdings in Bank of America Corporation $BAC

Key Points

• BDF Gestion has reduced its stake in Bank of America by 28.7%, selling 91,223 shares and now holding 226,575 shares, valued at approximately $10.7 million.
• Bank of America has recently increased its quarterly dividend from $0.26 to $0.28 per share, with an annual yield of 2.1%.
• The company's Board of Directors has authorized a $40 billion share repurchase program to buy back up to 11.1% of its stock, indicating confidence in the company's valuation.

BDF Gestion cut its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 28.7% in the second quarter, according to its most recent disclosure with the SEC. The firm owned 226,575 shares of the financial services provider's stock after selling 91,223 shares during the period. Bank of America comprises about 1.2% of BDF Gestion's holdings, making the stock its 12th biggest holding. BDF Gestion's holdings in Bank of America were worth $10,722,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also modified their holdings of the company. Nicholas Hoffman & Company LLC. raised its holdings in shares of Bank of America by 121.0% during the 1st quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider's stock worth $2,589,000 after acquiring an additional 33,963 shares during the period. Gradient Investments LLC increased its stake in Bank of America by 7.8% during the first quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock worth $29,061,000 after purchasing an additional 50,296 shares during the period. Prosperity Wealth Management Inc. purchased a new position in Bank of America in the 1st quarter valued at approximately $998,000. Alpha Cubed Investments LLC grew its stake in Bank of America by 37.2% during the 1st quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock worth $2,714,000 after purchasing an additional 17,619 shares in the last quarter. Finally, International Assets Investment Management LLC lifted its position in shares of Bank of America by 170.5% during the 1st quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock worth $9,951,000 after purchasing an additional 150,299 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Trading Down 0.4%

BAC traded down $0.22 on Monday, reaching $52.03. 25,620,984 shares of the company's stock were exchanged, compared to its average volume of 41,774,590. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $52.66. The company's 50 day moving average is $48.55 and its 200-day moving average is $44.55. The company has a market cap of $385.39 billion, a price-to-earnings ratio of 15.21, a PEG ratio of 2.03 and a beta of 1.34. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80.

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

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be given a dividend of $0.28 per share. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. Bank of America's dividend payout ratio is presently 32.75%.

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

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on BAC shares. The Goldman Sachs Group boosted their target price on Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a report on Tuesday, June 10th. Wall Street Zen upgraded Bank of America from a "sell" rating to a "hold" rating in a research note on Saturday, September 13th. Wells Fargo & Company raised their target price on shares of Bank of America from $56.00 to $60.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 16th. Oppenheimer lifted their target price on shares of Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Finally, HSBC cut shares of Bank of America from a "buy" rating to a "hold" rating and increased their price target for the stock from $47.00 to $51.00 in a research note on Monday, July 7th. Sixteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Bank of America currently has an average rating of "Moderate Buy" and an average price target of $50.82.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the sale, the insider directly 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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.