Bessemer Group Inc. Sells 2,533,750 Shares of Bank of America Corporation $BAC

Key Points

• Bessemer Group Inc. cut its Bank of America stake by 16.8% in the fourth quarter, selling 2.53 million shares and leaving it with 12.56 million shares worth about $690.8 million.
• Wall Street remains constructive on BAC, with 22 analysts rating it a Buy and five Hold, giving it a consensus “Moderate Buy” and an average price target of $61.06.
• Bank of America reported strong recent results and a dividend payout, beating EPS and revenue estimates for the quarter and declaring a quarterly dividend of $0.28 per share, or $1.12 annualized.

Bessemer Group Inc. decreased its stake in Bank of America Corporation (NYSE:BAC) by 16.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 12,560,745 shares of the financial services provider's stock after selling 2,533,750 shares during the quarter. Bank of America makes up 1.1% of Bessemer Group Inc.'s portfolio, making the stock its 12th biggest holding. Bessemer Group Inc. owned 0.17% of Bank of America worth $690,841,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Legacy Bridge LLC increased its position in Bank of America by 182.3% in the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider's stock worth $28,000 after buying an additional 330 shares in the last quarter. Wiser Advisor Group LLC purchased a new stake in Bank of America in the third quarter worth about $27,000. Collier Financial purchased a new stake in Bank of America in the third quarter worth about $30,000. Joseph Group Capital Management purchased a new stake in Bank of America in the fourth quarter worth about $32,000. Finally, Coston McIsaac & Partners increased its position in Bank of America by 90.2% in the fourth quarter. Coston McIsaac & Partners now owns 662 shares of the financial services provider's stock worth $36,000 after buying an additional 314 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Piper Sandler upped their price target on Bank of America from $53.00 to $59.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Robert W. Baird upped their price target on Bank of America from $56.00 to $58.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Truist Financial upped their price target on Bank of America from $57.00 to $61.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. UBS Group upped their price target on Bank of America from $62.00 to $63.00 in a research report on Wednesday, May 6th. Finally, The Goldman Sachs Group increased their target price on Bank of America from $58.00 to $63.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $61.06.

Key Bank of America News

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

• Positive Sentiment: Bank of America and other major banks are seen as potential winners if rates stay elevated longer, since higher rates can support net interest income and keep banking margins healthier. Higher-for-longer rate outlook puts bank stocks back on watch
• Positive Sentiment: Bank of America’s analyst calls on semiconductors, including upgraded price targets for Nvidia and Micron, reinforce BAC’s role as a leading Wall Street research franchise and may support investor sentiment around its markets and advisory businesses. BofA Hikes Nvidia Price Target to $320 -- Calls It Top Sector Pick
• Positive Sentiment: Bank of America remains well-regarded for digital banking, tying U.S. Bank for first place in a competitive retail digital experience ranking, which supports its long-term consumer franchise. Banks Give Customers Online Controls for Privacy & Marketing Preferences
• Positive Sentiment: BofA added to its AI and electronic trading push by joining LTX as a liquidity provider on an AI-powered corporate bond platform, highlighting continued investment in technology-driven fixed income trading. Bank Of America Deepens AI Bond Trading Role With LTX Partnership
• Neutral Sentiment: Several articles focus on BofA’s analyst coverage of other stocks, which mostly reflects the firm’s market influence rather than a direct change in BAC fundamentals. Bank of America massively resets Micron stock price target after surge
• Neutral Sentiment: Qiagen disclosed Bank of America as a voting stakeholder, but the filing appears to be a routine ownership update and is unlikely to move BAC shares by itself. Bank of America Discloses 3.11% Voting Stake in Qiagen

Bank of America Stock Performance

NYSE:BAC opened at $49.89 on Friday. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.18. Bank of America Corporation has a 12-month low of $42.35 and a 12-month high of $57.55. The stock has a 50-day moving average price of $50.42 and a 200 day moving average price of $52.46. The stock has a market capitalization of $354.05 billion, a P/E ratio of 12.35, a P/E/G ratio of 0.84 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last released its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $29.72 billion. During the same quarter last year, the business posted $0.90 earnings per share. The firm's revenue was up 10.7% on a year-over-year basis. Equities research analysts forecast that Bank of America Corporation will post 4.46 EPS for the current fiscal year.

Bank of America Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 5th will be issued a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 2.2%. The ex-dividend date is Friday, June 5th. Bank of America's dividend payout ratio (DPR) is currently 27.72%.

Insider Transactions at Bank of America

In other Bank of America news, insider James P. Demare sold 83,832 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $50.00, for a total transaction of $4,191,600.00. Following the completion of the transaction, the insider owned 307,240 shares in the company, valued at $15,362,000. This trade represents a 21.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Thomas M. Scrivener sold 50,000 shares of the firm's stock in a transaction that occurred on 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 transaction, the insider owned 227,973 shares of the company's stock, valued at $11,357,614.86. This represents a 17.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 354,588 shares of company stock worth $17,814,296. 0.27% of the stock is owned by corporate insiders.

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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