Equitable Trust Co. Boosts Stake in Bank of America Corporation (NYSE:BAC)

Key Points

• Equitable Trust Co. raised its stake in Bank of America by 6.2%, acquiring an additional 17,796 shares, bringing its total to 304,405 shares valued at $12.7 million.
• Bank of America has announced a quarterly dividend increase to $0.28 per share, up from $0.26, resulting in an annual yield of 2.31%.
• The company now has a $40 billion share repurchase program approved, allowing it to buy back up to 11.1% of its stock, indicating management's belief that the shares are undervalued.

Equitable Trust Co. raised its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 6.2% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 304,405 shares of the financial services provider's stock after buying an additional 17,796 shares during the period. Equitable Trust Co.'s holdings in Bank of America were worth $12,703,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in BAC. Graney & King LLC bought a new stake in shares of Bank of America during the 4th quarter valued at about $25,000. Vega Investment Solutions bought a new stake in shares of Bank of America during the 4th quarter valued at about $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of Bank of America during the 4th quarter valued at about $31,000. Spurstone Advisory Services LLC bought a new stake in shares of Bank of America during the 4th quarter valued at about $34,000. Finally, Glass Jacobson Investment Advisors llc boosted its position in shares of Bank of America by 53.0% during the 4th quarter. Glass Jacobson Investment Advisors llc now owns 797 shares of the financial services provider's stock valued at $35,000 after purchasing an additional 276 shares in the last quarter. Institutional investors own 70.71% of the company's stock.

Bank of America Trading Up 0.2%

NYSE:BAC traded up $0.08 during mid-day trading on Friday, reaching $48.47. 24,453,044 shares of the company's stock traded hands, compared to its average volume of 43,373,284. Bank of America Corporation has a 12-month low of $33.06 and a 12-month high of $49.31. The firm has a market capitalization of $365.09 billion, a price-to-earnings ratio of 14.17, a PEG ratio of 1.88 and a beta of 1.30. 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 company has a 50 day moving average price of $45.91 and a 200-day moving average price of $43.75.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (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 company had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the previous year, the business earned $0.83 EPS. Bank of America's revenue was up 4.3% compared to the same quarter last year. On average, sell-side analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America declared that its Board of Directors has initiated a share 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 declared a quarterly dividend, which will be paid on Friday, September 26th. Investors 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 2.31%. 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 payout ratio is currently 30.41%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on BAC shares. Cowen began coverage on Bank of America in a research report on Wednesday, May 14th. They set a "buy" rating on the stock. Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price target on shares of Bank of America in a research note on Friday, June 27th. Morgan Stanley upped their price target on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a research note on Monday, June 23rd. Oppenheimer dropped their price target on Bank of America from $57.00 to $55.00 and set an "outperform" rating on the stock in a research note on Thursday, July 17th. Finally, Piper Sandler dropped their price target on Bank of America from $45.00 to $42.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 16th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $50.03.

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.