Davis Selected Advisers Has $48.25 Million Stock Holdings in Bank of America Corporation (NYSE:BAC)

Key Points

• Davis Selected Advisers owns approximately $48.25 million in Bank of America shares, having reduced its position by 1.2% in the first quarter.
• Bank of America declared an increased quarterly dividend of $0.28 per share, reflecting a year-on-year boost from the previous $0.26.
• The company has an active share repurchase plan authorized for up to $40 billion, indicating the board's belief that the stock is undervalued.

Davis Selected Advisers decreased its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 1.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,156,148 shares of the financial services provider's stock after selling 14,287 shares during the quarter. Davis Selected Advisers' holdings in Bank of America were worth $48,246,000 as of its most recent SEC filing.

Other institutional investors have also recently bought and sold shares of the company. Hayek Kallen Investment Management increased its holdings in shares of Bank of America by 2.0% in the fourth quarter. Hayek Kallen Investment Management now owns 12,022 shares of the financial services provider's stock worth $528,000 after acquiring an additional 233 shares in the last quarter. Continuum Advisory LLC grew its position in shares of Bank of America by 1.4% in the 4th quarter. Continuum Advisory LLC now owns 16,707 shares of the financial services provider's stock valued at $734,000 after purchasing an additional 237 shares during the period. Menard Financial Group LLC increased its stake in Bank of America by 1.2% during the 4th quarter. Menard Financial Group LLC now owns 20,620 shares of the financial services provider's stock worth $906,000 after purchasing an additional 240 shares in the last quarter. Northern Financial Advisors Inc raised its holdings in Bank of America by 1.8% during the 1st quarter. Northern Financial Advisors Inc now owns 14,383 shares of the financial services provider's stock worth $600,000 after buying an additional 252 shares during the period. Finally, Bank of Jackson Hole Trust lifted its stake in Bank of America by 1.4% in the first quarter. Bank of Jackson Hole Trust now owns 18,053 shares of the financial services provider's stock valued at $832,000 after buying an additional 257 shares in the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on BAC. Robert W. Baird restated a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a report on Friday, June 27th. Wall Street Zen downgraded Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Cowen assumed coverage on shares of Bank of America in a report on Wednesday, May 14th. They set a "buy" rating on the stock. UBS Group upped their price target on shares of Bank of America from $46.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, April 16th. Finally, Citigroup lifted their price objective on shares of Bank of America from $50.00 to $54.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. One research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have given a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $50.13.

Bank of America Trading Down 1.2%

NYSE:BAC opened at $44.87 on Friday. Bank of America Corporation has a one year low of $33.06 and a one year high of $49.31. The business has a fifty day moving average price of $46.39 and a 200-day moving average price of $43.78. The firm has a market capitalization of $332.34 billion, a price-to-earnings ratio of 13.12, a price-to-earnings-growth ratio of 1.76 and a beta of 1.31. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates 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 firm had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. During the same quarter in the prior year, the company posted $0.83 earnings per share. The business's quarterly revenue was up 4.3% compared to the same quarter last year. Sell-side analysts forecast 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. Investors of record on Friday, September 5th will be paid a dividend of $0.28 per share. 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 2.5%. This is a boost from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is presently 30.41%.

Bank of America announced that its Board of Directors has authorized a share repurchase plan 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 plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related 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 in the company, valued at $10,180,656.99. The trade was a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.30% of the company's stock.

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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