Check Capital Management Inc. CA Sells 6,848 Shares of Bank of America Corporation $BAC

Key Points

• Check Capital Management Inc. CA reduced its holdings in Bank of America Corporation by 7.5%, now owning 84,065 shares valued at approximately $3.98 million.
• In the first quarter, major institutional investors like Deutsche Bank AG and Bank of New York Mellon Corp notably increased their stakes in Bank of America, indicating strong institutional interest in the stock.
• Bank of America recently announced an increase in its quarterly dividend from $0.26 to $0.28, alongside a $40 billion share buyback program, signaling confidence in its financial health and stock valuation.

Check Capital Management Inc. CA lowered its position in Bank of America Corporation (NYSE:BAC) by 7.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 84,065 shares of the financial services provider's stock after selling 6,848 shares during the period. Bank of America accounts for 0.1% of Check Capital Management Inc. CA's portfolio, making the stock its 17th largest holding. Check Capital Management Inc. CA's holdings in Bank of America were worth $3,978,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Bank of New York Mellon Corp increased its holdings in shares of Bank of America by 1.3% in the first quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock valued at $2,521,218,000 after purchasing an additional 803,570 shares in the last quarter. Deutsche Bank AG increased its holdings in shares of Bank of America by 45.1% in the first quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock valued at $2,007,718,000 after purchasing an additional 14,960,086 shares in the last quarter. Amundi increased its holdings in shares of Bank of America by 3.7% in the first quarter. Amundi now owns 39,233,293 shares of the financial services provider's stock valued at $1,637,205,000 after purchasing an additional 1,413,313 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Bank of America by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 31,956,699 shares of the financial services provider's stock valued at $1,333,351,000 after purchasing an additional 188,638 shares in the last quarter. Finally, National Pension Service grew its holdings in Bank of America by 2.4% during the 1st quarter. National Pension Service now owns 12,970,274 shares of the financial services provider's stock worth $541,250,000 after acquiring an additional 300,944 shares during the period. Institutional investors own 70.71% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on BAC shares. HSBC lifted their target price on shares of Bank of America from $51.00 to $53.00 and gave the stock a "hold" rating in a report on Thursday, October 2nd. Erste Group Bank raised shares of Bank of America from a "hold" rating to a "buy" rating in a report on Friday, October 3rd. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Bank of America in a report on Wednesday. JPMorgan Chase & Co. lifted their target price on shares of Bank of America from $51.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Wall Street Zen lowered shares of Bank of America from a "hold" rating to a "sell" rating in a report on Saturday. Twenty-one equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $54.64.

Bank of America Trading Down 2.4%

Shares of NYSE BAC opened at $48.62 on Friday. The company's fifty day moving average is $49.61 and its 200-day moving average is $45.52. The stock has a market cap of $360.12 billion, a price-to-earnings ratio of 14.22, a P/E/G ratio of 1.89 and a beta of 1.33. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $52.88. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The company had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period last year, the firm posted $0.83 earnings per share. Equities research analysts predict that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 26th. Investors of record on Friday, September 5th were paid a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Friday, September 5th. This is a boost from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio (DPR) is currently 32.75%.

Bank of America declared that its Board of Directors has authorized a share buyback program on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in shares. This repurchase authorization authorizes the financial services provider to purchase up to 11.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the transaction, the insider directly owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.30% of the company's stock.

About Bank of America

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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