Eminence Capital LP Invests $112.63 Million in Bank of America Corporation $BAC

Key Points

• Eminence Capital LP invested approximately $112.63 million in Bank of America, purchasing 2,698,949 shares, making it the fund's 27th largest holding.
• Bank of America recently announced an increase in its quarterly dividend to $0.28 per share, reflecting a rise from $0.26 and yielding 2.2%.
• The company has been receiving positive analyst ratings, with price targets set as high as $53.00, indicating strong investor confidence.

Eminence Capital LP purchased a new stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 2,698,949 shares of the financial services provider's stock, valued at approximately $112,627,000. Bank of America comprises about 1.9% of Eminence Capital LP's investment portfolio, making the stock its 27th biggest position.

A number of other institutional investors have also recently added to or reduced their stakes in BAC. Vega Investment Solutions bought a new stake in shares of Bank of America in the 4th quarter valued at $30,000. Spurstone Advisory Services LLC acquired a new position in Bank of America during the fourth quarter worth $34,000. Wood Tarver Financial Group LLC purchased a new stake in shares of Bank of America in the fourth quarter valued at about $38,000. Mascagni Wealth Management Inc. purchased a new stake in shares of Bank of America in the fourth quarter valued at about $40,000. Finally, Cloud Capital Management LLC bought a new position in Bank of America during the first quarter valued at about $40,000. 70.71% of the stock is owned by institutional investors.

Insider Transactions at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the sale, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.30% of the stock is owned by company insiders.

Bank of America Trading Down 1.8%

Shares of BAC traded down $0.93 during midday trading on Friday, reaching $49.69. The company had a trading volume of 40,059,616 shares, compared to its average volume of 33,778,700. The firm has a 50 day simple moving average of $47.95 and a 200-day simple moving average of $44.09. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The stock has a market cap of $368.07 billion, a PE ratio of 14.53, a price-to-earnings-growth ratio of 1.96 and a beta of 1.34. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $50.92.

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

Bank of America declared that its Board of Directors has approved a stock repurchase program on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Bank of America Increases Dividend

The firm 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. This represents a $1.12 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend 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 32.75%.

Wall Street Analyst Weigh In

BAC has been the subject of several research reports. Hsbc Global Res lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Cowen began coverage on shares of Bank of America in a research report on Wednesday, May 14th. They set a "buy" rating for the company. Oppenheimer increased their target price on shares of Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Royal Bank Of Canada set a $53.00 target price on shares of Bank of America and gave the stock an "outperform" rating in a research report on Monday, June 30th. Finally, Truist Financial increased their target price on shares of Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Sixteen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $50.39.

Bank of America 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.