Cromwell Holdings LLC Sells 8,874 Shares of Bank of America Corporation $BAC

Key Points

• Cromwell Holdings LLC reduced its stake in Bank of America by 41.1% in Q2, selling 8,874 shares and holding 12,730 shares, valued at $602,000 at the end of the reporting period.
• Bank of America recently declared a quarterly dividend increase from $0.26 to $0.28 per share, reflecting a payout ratio of 32.75% and a dividend yield of 2.2%.
• The firm's board approved a $40 billion share repurchase program, allowing the company to buy back up to 11.1% of its shares, indicating confidence in its valuation.

Cromwell Holdings LLC trimmed its stake in Bank of America Corporation (NYSE:BAC) by 41.1% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 12,730 shares of the financial services provider's stock after selling 8,874 shares during the quarter. Cromwell Holdings LLC's holdings in Bank of America were worth $602,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of BAC. Nicholas Hoffman & Company LLC. lifted its position in shares of 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. Prosperity Wealth Management Inc. acquired a new stake in shares of Bank of America in the first quarter valued at approximately $998,000. Alpha Cubed Investments LLC lifted its position in shares of Bank of America by 37.2% in the first quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock valued at $2,714,000 after buying an additional 17,619 shares during the last quarter. International Assets Investment Management LLC lifted its position in shares of Bank of America by 170.5% in the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock valued at $9,951,000 after buying an additional 150,299 shares during the last quarter. Finally, Commerce Bank lifted its position in shares of Bank of America by 2.3% in the first quarter. Commerce Bank now owns 1,124,755 shares of the financial services provider's stock valued at $46,936,000 after buying an additional 25,618 shares during the last quarter. 70.71% of the stock is currently owned by institutional investors.

Bank of America Price Performance

Shares of NYSE BAC opened at $50.44 on Friday. The stock has a market capitalization of $373.57 billion, a PE ratio of 14.75, a P/E/G ratio of 1.97 and a beta of 1.33. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. The business has a fifty day moving average price of $49.33 and a two-hundred day moving average price of $45.19. Bank of America Corporation has a fifty-two week low of $33.06 and a fifty-two week high of $52.88.

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

Bank of America declared that its board has approved a share repurchase 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 buy up to 11.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its shares are undervalued.

Bank of America Increases Dividend

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

Insider Activity at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction 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 transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. The trade was a 39.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on BAC shares. Phillip Securities cut Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Oppenheimer reduced their price target on Bank of America from $57.00 to $56.00 and set an "outperform" rating for the company in a research note on Tuesday, September 23rd. Truist Financial boosted their price target on Bank of America from $51.00 to $56.00 and gave the company a "buy" rating in a research note on Tuesday, September 23rd. Hsbc Global Res downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. Finally, Citigroup boosted their price target on Bank of America from $54.00 to $58.00 and gave the company a "buy" rating in a research note on Friday, September 19th. Seventeen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Bank of America has an average rating of "Moderate Buy" and a consensus price target of $52.88.

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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