Convergence Investment Partners LLC Purchases 22,846 Shares of Bank of America Corporation $BAC

Key Points

• Convergence Investment Partners increased its Bank of America stake by 26.1% in the first quarter, buying 22,846 additional shares and lifting its total holding to 110,451 shares valued at about $5.38 million.
• Bank of America reported strong quarterly earnings, posting $1.21 per share versus the $1.13 consensus estimate, while revenue rose 19.6% year over year.
• Analysts remain broadly constructive on BAC, with an average “Moderate Buy” rating and a consensus price target of $63.77, even as insider Geoffrey S. Greener sold 126,756 shares in May.

Convergence Investment Partners LLC grew its position in Bank of America Corporation (NYSE:BAC - Free Report) by 26.1% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 110,451 shares of the financial services provider's stock after buying an additional 22,846 shares during the period. Bank of America makes up 0.9% of Convergence Investment Partners LLC's portfolio, making the stock its 25th largest position. Convergence Investment Partners LLC's holdings in Bank of America were worth $5,384,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in BAC. Handelsbanken Fonder AB increased its holdings in shares of Bank of America by 53.0% during the fourth quarter. Handelsbanken Fonder AB now owns 4,629,553 shares of the financial services provider's stock worth $254,625,000 after purchasing an additional 1,603,080 shares during the period. Legal & General Group Plc boosted its stake in shares of Bank of America by 3.4% in the fourth quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider's stock valued at $2,497,655,000 after buying an additional 1,487,809 shares during the period. Nisa Investment Advisors LLC grew its position in Bank of America by 2.5% during the fourth quarter. Nisa Investment Advisors LLC now owns 2,905,348 shares of the financial services provider's stock worth $159,794,000 after buying an additional 71,307 shares in the last quarter. Mondrian Investment Partners LTD grew its position in Bank of America by 34.3% during the fourth quarter. Mondrian Investment Partners LTD now owns 2,175,401 shares of the financial services provider's stock worth $119,647,000 after buying an additional 555,063 shares in the last quarter. Finally, Ritholtz Wealth Management increased its stake in Bank of America by 9.9% during the 4th quarter. Ritholtz Wealth Management now owns 231,018 shares of the financial services provider's stock worth $12,706,000 after acquiring an additional 20,819 shares during the period. Institutional investors own 70.71% of the company's stock.

Key Bank of America News

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

• Positive Sentiment: Bank of America’s analysts are still finding opportunities across financials and related sectors, with recent notes highlighting attractive valuations, net interest margin upside at regional banks, and other potential buying opportunities. That reinforces a constructive view on BAC and the broader bank group. Article: Citizens Financial Group: Buy Rating Backed by Attractive Valuation, Above-Peer Growth and Net Interest Margin Upside
• Positive Sentiment: Bank of America is also leaning into growth areas like AI and digital assets, promoting executives to lead its AI transformation and crypto efforts. Investors may see that as evidence the bank is investing for long-term efficiency and new revenue streams. Article: Bank of America Promotes Execs to Champion AI and Crypto
• Neutral Sentiment: Several headlines reflect broad market and macro themes, including inflation expectations, Fed policy debates, and bank earnings commentary. These are more relevant to sector sentiment than to a direct BAC-specific catalyst. Article: Bond Traders Take Warsh at Word, See Inflation Fight Continuing
• Neutral Sentiment: Bank of America’s own recent dividend declarations on preferred shares are routine capital-return updates and are unlikely to move the common stock meaningfully on their own. Article: Bank of America Corporation 5.375 DEP PFD KK declares $0.3359 dividend
• Negative Sentiment: Macro uncertainty around Fed policy and inflation could keep pressure on bank valuation multiples if rate-cut expectations fade or markets price in a more restrictive policy path. That is a risk for BAC even if its fundamentals remain solid. Article: Could Warsh Break a 56-Year Fed Rate-Hike Streak?

Insiders Place Their Bets

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the company's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total value of $6,719,335.56. Following the completion of the transaction, the insider owned 1,373,397 shares of the company's stock, valued at $72,803,774.97. This represents a 8.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.27% of the stock is owned by corporate insiders.

Bank of America Price Performance

Shares of NYSE:BAC opened at $60.41 on Tuesday. Bank of America Corporation has a one year low of $44.75 and a one year high of $62.12. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The company has a market cap of $428.70 billion, a price-to-earnings ratio of 13.86, a PEG ratio of 0.98 and a beta of 1.17. The firm has a 50 day simple moving average of $55.50 and a 200 day simple moving average of $53.17.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The firm had revenue of $8.08 billion for the quarter, compared to analysts' expectations of $30.78 billion. During the same quarter in the previous year, the firm posted $0.89 earnings per share. The company's revenue was up 19.6% on a year-over-year basis. Research analysts predict that Bank of America Corporation will post 4.64 earnings per share for the current fiscal year.

Bank of America Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 5th were given a dividend of $0.28 per share. The ex-dividend date was Friday, June 5th. This represents a $1.12 dividend on an annualized basis and a yield of 1.9%. Bank of America's payout ratio is currently 25.69%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Robert W. Baird upped their target price on Bank of America from $58.00 to $62.00 and gave the company a "neutral" rating in a research report on Wednesday, July 15th. Truist Financial raised their price target on Bank of America from $64.00 to $65.00 and gave the stock a "buy" rating in a research report on Wednesday, July 15th. Piper Sandler boosted their price target on Bank of America from $53.00 to $59.00 and gave the company a "neutral" rating in a research note on Thursday, April 16th. Oppenheimer cut shares of Bank of America from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. Finally, Keefe, Bruyette & Woods increased their price objective on shares of 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 research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Bank of America currently has an average rating of "Moderate Buy" and an average price target of $63.77.

About Bank of America

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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