Compound Planning Inc. Sells 5,733 Shares of Bank of America Corporation $BAC

Key Points

• Compound Planning Inc. reduced its investment in Bank of America by selling 5,733 shares, bringing its total holdings to 146,111 shares valued at approximately $6.1 million.
• Bank of America declared a quarterly dividend of $0.28 per share, which will be paid to shareholders on September 26th, representing an increase from the previous $0.26 dividend.
• The company announced a share repurchase plan authorizing up to $40 billion to buy back shares, indicating a belief among board members that the stock is currently undervalued.

Compound Planning Inc. trimmed its position in Bank of America Corporation (NYSE:BAC - Free Report) by 3.8% during the first quarter, according to its most recent 13F filing with the SEC. The fund owned 146,111 shares of the financial services provider's stock after selling 5,733 shares during the period. Compound Planning Inc.'s holdings in Bank of America were worth $6,097,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of BAC. Vega Investment Solutions bought a new position in Bank of America in the 4th quarter valued at $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new position in Bank of America in the 4th quarter valued at $31,000. Spurstone Advisory Services LLC bought a new position in Bank of America in the 4th quarter valued at $34,000. Wood Tarver Financial Group LLC bought a new position in Bank of America in the 4th quarter valued at $38,000. Finally, Mascagni Wealth Management Inc. bought a new position in Bank of America in the 4th quarter valued at $40,000. 70.71% of the stock is currently owned by institutional investors.

Bank of America Stock Performance

Shares of Bank of America stock opened at $48.2350 on Friday. The company has a market capitalization of $357.27 billion, a PE ratio of 14.10, a PEG ratio of 1.88 and a beta of 1.31. Bank of America Corporation has a 12 month low of $33.06 and a 12 month high of $49.31. 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 stock's fifty day simple moving average is $46.95 and its 200 day simple moving average is $43.84.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings data 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. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The business had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter last year, the business posted $0.83 EPS. The firm's revenue was up 4.3% compared to the same quarter last year. On average, research analysts predict that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.3%. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio (DPR) is 32.75%.

Bank of America announced that its board has initiated a share repurchase plan on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

BAC has been the topic of a number of analyst reports. HSBC downgraded Bank of America from a "buy" rating to a "hold" rating and increased their price target for the company from $47.00 to $51.00 in a research note on Monday, July 7th. Morgan Stanley increased their price target on Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research note on Monday, June 23rd. Truist Financial increased their price target on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Cowen initiated coverage on Bank of America in a research note on Wednesday, May 14th. They issued a "buy" rating on the stock. Finally, Royal Bank Of Canada set a $53.00 price target on Bank of America and gave the company an "outperform" rating in a research note on Monday, June 30th. Seventeen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, Bank of America presently has an average rating of "Moderate Buy" and a consensus price target of $50.13.

Insider Activity

In other Bank of America news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $45.57, for a total value of $6,762,177.87. Following the sale, the insider 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 transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.30% of the stock is owned by corporate insiders.

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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