Chancellor Financial Group WB LP Makes New $2.01 Million Investment in Bank of America Corporation $BAC

Key Points

• Chancellor Financial Group WB LP purchased 35,318 Bank of America shares worth approximately $2.01 million, making BAC its 16th-largest portfolio holding. Institutional investors and hedge funds collectively own 70.71% of the company.
• Bank of America reported quarterly EPS of $1.21, beating estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion. The bank also increased its quarterly dividend from $0.28 to $0.32 per share, implying a 2.1% yield.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $64.08, although some market commentary warns that crowded positioning and recent share-price weakness could increase downside risk.

Chancellor Financial Group WB LP purchased a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 35,318 shares of the financial services provider's stock, valued at approximately $2,012,000. Bank of America accounts for about 1.2% of Chancellor Financial Group WB LP's portfolio, making the stock its 16th largest holding.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Great Lakes Advisors LLC acquired a new position in shares of Bank of America during the 2nd quarter valued at about $9,724,000. Pacific Sun Financial Corp acquired a new stake in Bank of America during the second quarter worth about $690,000. Altiora Financial Group LLC purchased a new position in Bank of America during the second quarter worth about $855,000. BOK Financial Private Wealth Inc. purchased a new position in Bank of America during the second quarter worth about $385,000. Finally, Danica Pension Livsforsikringsaktieselskab acquired a new position in Bank of America in the 2nd quarter valued at about $101,531,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Stock Performance

Shares of BAC stock opened at $61.73 on Friday. 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 stock has a market capitalization of $431.66 billion, a PE ratio of 14.16, a P/E/G ratio of 0.98 and a beta of 1.17. The firm has a 50 day moving average of $60.60 and a two-hundred day moving average of $54.67. 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 announced its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, topping analysts' consensus estimates of $1.13 by $0.08. The business had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The business's revenue for the quarter was up 19.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.89 earnings per share. On average, research analysts predict that Bank of America Corporation will post 4.68 EPS for the current fiscal year.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be paid a $0.32 dividend. This is a boost from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, September 4th. Bank of America's payout ratio is currently 25.69%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Oppenheimer cut shares of Bank of America from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Bank of America in a research report on Tuesday, July 21st. Morgan Stanley upped their price objective on Bank of America from $61.00 to $67.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Jefferies Financial Group reiterated a "buy" rating and issued a $75.00 price objective on shares of Bank of America in a research report on Tuesday, July 14th. Finally, Keefe, Bruyette & Woods raised their target price on Bank of America from $67.00 to $70.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Twenty-one equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Bank of America currently has an average rating of "Moderate Buy" and an average price target of $64.08.

Key Stories Impacting Bank of America

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

• Positive Sentiment: Bank of America’s active participation in the August bond market demonstrates continued access to wholesale funding and allows it to extend maturities through senior unsecured offerings. Its latest quarterly results also showed strong earnings and revenue growth, providing a fundamental counterweight to near-term concerns. Bank of America's Stock Market Signal Flashes Warning
• Neutral Sentiment: Bank of America increased its indirect stake in Turkish industrial technology company Hidropar to 5.386%. The disclosure indicates portfolio or client-related investment activity, but it is not expected to materially affect BAC’s earnings. Bank of America Lifts Indirect Stake in Hidropar to 5.386%
• Neutral Sentiment: Bank of America crossed a disclosure threshold in Smith & Nephew, reflecting an updated shareholding. The move is unlikely to have a meaningful direct impact on BAC’s common stock. Smith & Nephew Discloses Updated Bank of America Shareholding
• Neutral Sentiment: Bank of America’s analysts issued views on HP, Home Depot and Nvidia. These calls may generate research-related attention, but they do not materially change BAC’s own fundamentals. Bank of America Sends Warning on HP Stock
• Negative Sentiment: A market commentary warns that crowded positioning in Bank of America could make any broader-market pullback sharper. Separate analysis questions whether BAC is undervalued after its recent bond issuance, while noting recent short-term share-price weakness. These factors are weighing on sentiment despite the bank’s solid earnings profile. Bank of America's Stock Market Signal Flashes Warning Is Bank of America Undervalued?
• Negative Sentiment: Analysis of Bank of America preferred stock suggests that more attractive alternatives may exist than Series GG. While this primarily affects preferred securities, it can modestly temper sentiment toward BAC’s capital-raising instruments. Bank of America Preferreds: Better Propositions Available Than Series GG

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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