Chemistry Wealth Management LLC Reduces Stock Position in Bank of America Corporation $BAC

Key Points

• Chemistry Wealth Management LLC reduced its holdings in Bank of America Corporation by 6.8%, retaining 83,980 shares valued at approximately $3.97 million.
• Bank of America has initiated a $40 billion share buyback program, indicating the board's belief that the stock is undervalued.
• The company recently increased its quarterly dividend from $0.26 to $0.28 per share, reflecting a positive change in its financial health.

Chemistry Wealth Management LLC lessened its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 6.8% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 83,980 shares of the financial services provider's stock after selling 6,079 shares during the quarter. Bank of America makes up about 0.9% of Chemistry Wealth Management LLC's holdings, making the stock its 21st largest position. Chemistry Wealth Management LLC's holdings in Bank of America were worth $3,974,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Nicholas Hoffman & Company LLC. increased its holdings in Bank of America by 121.0% in the first quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider's stock valued at $2,589,000 after buying an additional 33,963 shares during the last quarter. Gradient Investments LLC grew its holdings in shares of Bank of America by 7.8% during the first quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock worth $29,061,000 after purchasing an additional 50,296 shares during the last quarter. Prosperity Wealth Management Inc. purchased a new position in shares of Bank of America during the first quarter worth about $998,000. Alpha Cubed Investments LLC grew its holdings in shares of Bank of America by 37.2% during the first quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock worth $2,714,000 after purchasing an additional 17,619 shares during the last quarter. Finally, International Assets Investment Management LLC grew its holdings in shares of Bank of America by 170.5% during the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock worth $9,951,000 after purchasing an additional 150,299 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Price Performance

BAC stock opened at $50.60 on Monday. The firm has a 50 day moving average of $48.13 and a 200-day moving average of $44.28. Bank of America Corporation has a 12-month low of $33.06 and a 12-month high of $50.96. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The company has a market cap of $374.79 billion, a price-to-earnings ratio of 14.80, a PEG ratio of 1.96 and a beta of 1.34.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.03. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The company had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same period last year, the firm earned $0.83 EPS. The company's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, equities analysts expect that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

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

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.28 per share. This is a positive change from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. Bank of America's dividend payout ratio is 32.75%.

Insider Buying and Selling at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction 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 $10,180,656.99. This trade represents a 39.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.30% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have issued reports on BAC. Citigroup raised their price objective on Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a report on Thursday, June 26th. Phillip Securities downgraded shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, July 25th. Oppenheimer increased their target price on shares of Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. HSBC downgraded shares of Bank of America from a "buy" rating to a "hold" rating and increased their target price for the stock from $47.00 to $51.00 in a research note on Monday, July 7th. Finally, 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. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $50.39.

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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