Capstone Investment Advisors LLC Buys Shares of 19,620 Bank of America Corporation $BAC

Key Points

• Capstone Investment Advisors bought a new 19,620-share stake in Bank of America during the second quarter, valued at approximately $1.02 million. Institutional investors and hedge funds collectively own 70.71% of BAC.
• Bank of America reported quarterly earnings of $1.21 per share, exceeding estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $64.08. The company also raised its quarterly dividend to $0.32 per share, implying a 2.1% yield.

Capstone Investment Advisors LLC bought a new stake in Bank of America Corporation (NYSE:BAC - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 19,620 shares of the financial services provider's stock, valued at approximately $1,022,000.

Several other hedge funds also recently modified their holdings of the company. Turim 21 Investimentos Ltda. acquired a new stake in Bank of America during the second quarter worth approximately $25,000. Abound Financial LLC acquired a new position in Bank of America in the 4th quarter valued at $26,000. Wiser Advisor Group LLC acquired a new position in Bank of America in the 3rd quarter valued at $27,000. CrossGen Wealth LLC purchased a new position in shares of Bank of America during the 4th quarter worth $30,000. Finally, Vermillion Wealth Management Inc. boosted its holdings in shares of Bank of America by 199.1% during the first quarter. Vermillion Wealth Management Inc. now owns 658 shares of the financial services provider's stock worth $32,000 after purchasing an additional 438 shares during the last quarter. 70.71% of the stock is owned by institutional investors and hedge funds.

Key Bank of America News

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

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on BAC. Argus set a $70.00 price objective on Bank of America in a research report on Wednesday, July 15th. Robert W. Baird increased their target price on Bank of America from $58.00 to $62.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 15th. Royal Bank Of Canada raised their price target on Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Wells Fargo & Company lifted their price target on Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bank of America in a research note on Tuesday, July 21st. Twenty-one analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and an average price target of $64.08.

Bank of America Trading Up 2.0%

BAC stock opened at $62.38 on Friday. The company has a market cap of $436.21 billion, a price-to-earnings ratio of 14.31, a PEG ratio of 0.98 and a beta of 1.17. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. The business has a fifty day simple moving average of $61.18 and a 200-day simple moving average of $54.92. Bank of America Corporation has a 52 week low of $46.12 and a 52 week high of $65.22.

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

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Friday, September 4th. 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. Bank of America's dividend payout ratio is presently 25.69%.

Bank of America Company 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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