Empowered Funds LLC Acquires 34,146 Shares of Bank of America Corporation $BAC

Key Points

• Empowered Funds LLC increased its stake in Bank of America (NYSE:BAC) by 13% in Q1, buying an additional 34,146 shares for a total of 296,840 shares worth approximately $12.39 million.
• Bank of America recently announced a $40 billion share buyback program, indicating management's belief that its stock is undervalued, and declared an increased quarterly dividend of $0.28 per share.
• As of now, institutional investors own 70.71% of Bank of America's stock, reflecting significant interest from major financial entities.

Empowered Funds LLC boosted its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 13.0% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 296,840 shares of the financial services provider's stock after purchasing an additional 34,146 shares during the period. Empowered Funds LLC's holdings in Bank of America were worth $12,387,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in BAC. Deutsche Bank AG lifted its stake in Bank of America by 45.1% during the first quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock worth $2,007,718,000 after purchasing an additional 14,960,086 shares during the last quarter. Theleme Partners LLP bought a new position in shares of Bank of America in the 4th quarter valued at $263,449,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Bank of America by 12.7% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,092,517 shares of the financial services provider's stock valued at $1,981,816,000 after acquiring an additional 5,092,504 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in shares of Bank of America in the 4th quarter valued at $217,979,000. Finally, GAMMA Investing LLC lifted its stake in shares of Bank of America by 4,414.4% in the 1st quarter. GAMMA Investing LLC now owns 4,654,022 shares of the financial services provider's stock valued at $194,212,000 after acquiring an additional 4,550,930 shares during the last quarter. 70.71% of the stock is currently owned by institutional investors.

Bank of America Stock Down 0.6%

Shares of NYSE:BAC opened at $49.50 on Tuesday. The firm has a market cap of $366.61 billion, a P/E ratio of 14.47, a P/E/G ratio of 1.93 and a beta of 1.34. 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 Corporation has a 12-month low of $33.06 and a 12-month high of $50.92. The business has a fifty day simple moving average of $47.99 and a 200 day simple moving average of $44.10.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. During the same period last year, the company earned $0.83 EPS. Bank of America's revenue for the quarter was up 4.3% compared to the same quarter last year. Analysts predict 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 authorized a share buyback 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 purchase up to 11.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management 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 issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio (DPR) is 32.75%.

Insiders Place Their Bets

In other Bank of America news, insider James P. Demare sold 148,391 shares of the 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 completion of the sale, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on BAC shares. Citigroup increased their price target on Bank of America from $50.00 to $54.00 and gave the company a "buy" rating in a research note on Thursday, June 26th. Morgan Stanley increased their price target on Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research note on Monday, June 23rd. Robert W. Baird reiterated a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a research note on Friday, June 27th. TD Cowen started coverage on Bank of America in a research note on Thursday, May 15th. They issued a "buy" rating and a $53.00 price target for the company. Finally, Wall Street Zen cut Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Sixteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, Bank of America has an average rating of "Moderate Buy" and an average 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.

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