Everstar Asset Management LLC Reduces Stock Position in Bank of America Corporation $BAC

Key Points

• Everstar Asset Management LLC reduced its holdings in Bank of America by 57.4% by selling 7,990 shares, leaving it with 5,926 shares valued at $247,000.
• Bank of America declared an increase in its quarterly dividend to $0.28, with a corresponding dividend yield of 2.2%, along with a $40 billion share buyback program aimed at repurchasing up to 11.1% of its shares.
• Analysts have mixed ratings on Bank of America; while TD Cowen rates it as a "buy" with a price target of $53.00, others have downgraded its ratings, resulting in a consensus rating of "Moderate Buy" with an average price target of $50.39.

Everstar Asset Management LLC trimmed its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 57.4% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 5,926 shares of the financial services provider's stock after selling 7,990 shares during the period. Everstar Asset Management LLC's holdings in Bank of America were worth $247,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Vega Investment Solutions acquired a new position in Bank of America during the 4th quarter valued at about $30,000. Spurstone Advisory Services LLC bought a new position in shares of Bank of America in the fourth quarter valued at approximately $34,000. Wood Tarver Financial Group LLC purchased a new position in shares of Bank of America during the fourth quarter valued at approximately $38,000. Mascagni Wealth Management Inc. bought a new stake in Bank of America during the fourth quarter worth $40,000. Finally, Cloud Capital Management LLC bought a new stake in Bank of America during the first quarter worth $40,000. 70.71% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts have issued reports on BAC shares. TD Cowen assumed coverage on shares of Bank of America in a report on Thursday, May 15th. They set a "buy" rating and a $53.00 price objective on the stock. Phillip Securities lowered shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Cowen assumed coverage on shares of Bank of America in a research report on Wednesday, May 14th. They issued a "buy" rating for the company. Morgan Stanley increased their price objective on shares of Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research note on Monday, June 23rd. Finally, Wall Street Zen downgraded Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Sixteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $50.39.

Bank of America Stock Performance

BAC stock traded down $0.13 during mid-day trading on Wednesday, hitting $50.17. The company had a trading volume of 31,674,616 shares, compared to its average volume of 41,887,172. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The firm has a market cap of $371.57 billion, a PE ratio of 14.67, a price-to-earnings-growth ratio of 1.92 and a beta of 1.34. Bank of America Corporation has a 12 month low of $33.06 and a 12 month high of $50.92. The stock's fifty day moving average price is $48.03 and its two-hundred day moving average price is $44.15.

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 the consensus estimate of $0.86 by $0.03. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The company had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. During the same quarter last year, the business posted $0.83 EPS. Bank of America's quarterly revenue was up 4.3% compared to the same quarter last year. On average, analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be given 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 2.2%. This is a boost from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is currently 32.75%.

Bank of America declared that its Board of Directors has authorized a share repurchase 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 buy up to 11.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $45.57, for a total value 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 position. The sale was disclosed in a legal filing with the SEC, which can be accessed 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.