E Fund Management Co. Ltd. Acquires 10,248 Shares of Bank of America Corporation (NYSE:BAC)

Key Points

• E Fund Management Co. Ltd. increased its stake in Bank of America by 13.0%, owning a total of 88,963 shares worth approximately $3.71 million after buying an additional 10,248 shares in the 1st quarter.
• Bank of America declared a quarterly dividend increase from $0.26 to $0.28 per share, with an annualized yield of 2.4% and a future share repurchase program of $40 billion authorized by the board.
• Despite recent downgrades from some analysts, Bank of America maintains a Moderate Buy average rating with a price target of $50.13, reflecting a significant level of confidence among the majority of analysts.

E Fund Management Co. Ltd. raised its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 13.0% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 88,963 shares of the financial services provider's stock after acquiring an additional 10,248 shares during the period. E Fund Management Co. Ltd.'s holdings in Bank of America were worth $3,712,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in BAC. Vega Investment Solutions acquired a new position in Bank of America in the 4th quarter valued at $30,000. Marshall & Sterling Wealth Advisors Inc. acquired a new position in shares of Bank of America during the 4th quarter worth $31,000. Spurstone Advisory Services LLC acquired a new position in shares of Bank of America during the 4th quarter worth $34,000. Wood Tarver Financial Group LLC acquired a new position in shares of Bank of America during the 4th quarter worth $38,000. Finally, Mascagni Wealth Management Inc. acquired a new position in shares of Bank of America during the 4th quarter worth $40,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Bank of America

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

Bank of America Trading Up 0.9%

Shares of NYSE BAC traded up $0.44 during trading on Thursday, reaching $47.68. The company had a trading volume of 21,061,848 shares, compared to its average volume of 35,297,836. The company's fifty day moving average price is $46.65 and its 200-day moving average price is $43.79. Bank of America Corporation has a 12 month low of $33.06 and a 12 month high of $49.31. The stock has a market cap of $353.13 billion, a P/E ratio of 13.94, a PEG ratio of 1.83 and a beta of 1.31. 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, beating 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 for the quarter, compared to analyst estimates of $26.79 billion. During the same quarter in the previous year, the company posted $0.83 EPS. The business's revenue was up 4.3% on a year-over-year basis. As a group, research analysts expect that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America announced that its Board of Directors has approved a stock repurchase plan on Wednesday, July 23rd that allows the company to buyback $40.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is currently 30.41%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on BAC shares. Truist Financial boosted their price target on Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a report on Wednesday, July 9th. Piper Sandler lowered their price target on Bank of America from $45.00 to $42.00 and set a "neutral" rating for the company in a report on Wednesday, April 16th. Barclays lowered their price target on Bank of America from $58.00 to $54.00 and set an "overweight" rating for the company in a report on Wednesday, April 16th. Cfra Research boosted their price target on Bank of America to $47.00 and gave the stock a "buy" rating in a report on Wednesday, April 16th. Finally, Morgan Stanley upped their target price on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. One research analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $50.13.

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.