Cinctive Capital Management LP Cuts Stock Position in Bank of America Corporation $BAC

Key Points

• Cinctive Capital Management LP reduced its holdings in Bank of America by 11.1%, selling 55,151 shares during the first quarter, while maintaining a position worth approximately $18.5 million.
• Bank of America recently increased its quarterly dividend from $0.26 to $0.28, indicating a 2.2% yield and a dividend payout ratio of 30.41%.
• In addition to the dividend, Bank of America announced a $40 billion share buyback plan, aiming to repurchase up to 11.1% of its stock, which reflects confidence in the company's valuation.

Cinctive Capital Management LP lessened its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 11.1% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 443,393 shares of the financial services provider's stock after selling 55,151 shares during the quarter. Bank of America accounts for approximately 1.4% of Cinctive Capital Management LP's portfolio, making the stock its 13th biggest position. Cinctive Capital Management LP's holdings in Bank of America were worth $18,503,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Vega Investment Solutions acquired a new stake in shares of Bank of America during the 4th quarter worth about $30,000. Spurstone Advisory Services LLC acquired a new stake in shares of Bank of America during the 4th quarter worth about $34,000. Wood Tarver Financial Group LLC acquired a new stake in shares of Bank of America during the 4th quarter worth about $38,000. Mascagni Wealth Management Inc. acquired a new stake in shares of Bank of America during the 4th quarter worth about $40,000. Finally, Cloud Capital Management LLC acquired a new stake in shares of Bank of America during the 1st quarter worth about $40,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

Insider Activity at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the company'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 completion of the sale, the insider owned 223,407 shares in the company, valued at $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.30% of the stock is owned by company insiders.

Bank of America Stock Performance

BAC traded down $0.93 during trading on Friday, hitting $49.69. 40,059,616 shares of the stock were exchanged, compared to its average volume of 33,778,700. The firm has a market capitalization of $368.07 billion, a P/E ratio of 14.53, a PEG ratio of 1.93 and a beta of 1.34. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $50.92. The stock has a fifty day moving average price of $47.95 and a two-hundred day moving average price of $44.08. 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 released its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, topping the consensus estimate of $0.86 by $0.03. The company had revenue of ($22,273.00) million for the quarter, compared to analyst estimates 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 was up 4.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.83 earnings per share. As a group, sell-side 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 has approved a stock buyback program on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Bank of America Increases Dividend

The business also recently declared 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 represents a $1.12 annualized dividend and a dividend yield of 2.3%. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is currently 30.41%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on BAC shares. Hsbc Global Res lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. TD Cowen started coverage on Bank of America in a research report on Thursday, May 15th. They set a "buy" rating and a $53.00 target price on the stock. Oppenheimer raised their target price on Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Cowen initiated coverage on Bank of America in a research report on Wednesday, May 14th. They set a "buy" rating on the stock. Finally, Royal Bank Of Canada set a $53.00 price target on Bank of America and gave the stock an "outperform" rating in a research report on Monday, June 30th. Sixteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $50.39.

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.