Campbell & CO Investment Adviser LLC Cuts Stake in Bank of America Corporation $BAC

Key Points

• Campbell & CO Investment Adviser LLC significantly reduced its stake in Bank of America by 58.4%, now holding 29,703 shares after selling 41,633 shares, worth roughly $1,240,000.
• Bank of America recently announced a $40 billion stock repurchase program, indicating management believes the company's shares are undervalued.
• The quarterly dividend will be increased from $0.26 to $0.28 per share, reflecting a 2.2% dividend yield based on an annualized payout of $1.12.

Campbell & CO Investment Adviser LLC trimmed its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 58.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 29,703 shares of the financial services provider's stock after selling 41,633 shares during the period. Campbell & CO Investment Adviser LLC's holdings in Bank of America were worth $1,240,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its position in Bank of America by 30.0% during the fourth quarter. Brighton Jones LLC now owns 108,872 shares of the financial services provider's stock worth $4,785,000 after buying an additional 25,143 shares in the last quarter. Bank Pictet & Cie Europe AG grew its holdings in Bank of America by 35.7% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 860,005 shares of the financial services provider's stock valued at $37,797,000 after buying an additional 226,246 shares during the period. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in Bank of America in the fourth quarter valued at approximately $31,000. Bellwether Advisors LLC purchased a new stake in Bank of America during the fourth quarter valued at about $101,000. Finally, Voleon Capital Management LP purchased a new stake in Bank of America during the fourth quarter valued at about $6,601,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Stock Performance

BAC opened at $50.23 on Wednesday. The business's 50 day moving average is $47.28 and its 200-day moving average is $43.87. The stock has a market cap of $372.02 billion, a PE ratio of 14.69, a price-to-earnings-growth ratio of 1.92 and a beta of 1.31. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $50.26.

Bank of America (NYSE:BAC - Get Free Report) last announced 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 firm had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm's revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.83 EPS. On average, analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America announced that its Board of Directors has approved a stock repurchase program on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to repurchase up to 11.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be paid a dividend of $0.28 per share. 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%. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is presently 30.41%.

Insider Activity at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the sale, the insider owned 223,407 shares of the company's stock, valued at $10,180,656.99. The trade was a 39.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Hsbc Global Res downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Oppenheimer increased their price target on Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Robert W. Baird reiterated a "neutral" rating and set a $52.00 target price on shares of Bank of America in a research note on Friday, June 27th. Wall Street Zen cut Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Finally, Phillip Securities downgraded shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Seventeen 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, Bank of America currently has an average rating of "Moderate Buy" and an average price target of $50.13.

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.

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