Ferguson Wellman Capital Management Inc. Buys 364,320 Shares of Bank of America Corporation $BAC

Key Points

• Ferguson Wellman Capital Management increased its Bank of America position by 364,320 shares, or 2,853.8%, during the third quarter, bringing its holdings to 377,086 shares valued at approximately $20.5 million.
• Analysts maintain a generally positive outlook, with 20 Buy ratings and six Holds producing a consensus “Moderate Buy” rating and a $63.78 price target, although JPMorgan recently cut its target to $62.
• Bank of America reported quarterly earnings and revenue above expectations and raised its quarterly dividend to $0.32 per share, equivalent to a 2.4% annualized yield.

Ferguson Wellman Capital Management Inc. increased its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 2,853.8% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 377,086 shares of the financial services provider's stock after purchasing an additional 364,320 shares during the period. Ferguson Wellman Capital Management Inc.'s holdings in Bank of America were worth $20,525,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Turim 21 Investimentos Ltda. bought a new stake in shares of Bank of America in the 2nd quarter worth $25,000. Abound Financial LLC bought a new stake in Bank of America in the fourth quarter worth about $26,000. Cherry Tree Wealth Management LLC lifted its holdings in Bank of America by 167.6% in the 2nd quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 300 shares during the last quarter. Principia Wealth Advisory LLC boosted its position in shares of Bank of America by 69.9% during the 2nd quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 218 shares in the last quarter. Finally, Frazier Financial Advisors LLC acquired a new position in shares of Bank of America in the 2nd quarter worth approximately $34,000. 70.71% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several analysts recently commented on the stock. JPMorgan Chase & Co. cut their target price on shares of Bank of America from $68.00 to $62.00 and set an "overweight" rating for the company in a research note on Friday. Robert W. Baird upped their price target on Bank of America from $58.00 to $62.00 and gave the company a "neutral" rating in a report on Wednesday, July 15th. Jefferies Financial Group reduced their price objective on Bank of America from $75.00 to $70.00 and set a "buy" rating for the company in a research note on Thursday, September 24th. UBS Group set a $67.00 target price on Bank of America in a report on Monday. Finally, Keefe, Bruyette & Woods upped their target price on Bank of America from $67.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Twenty investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Bank of America currently has a consensus rating of "Moderate Buy" and a consensus price target of $63.78.

Bank of America Trading Up 0.8%

Bank of America stock traded up $0.42 during midday trading on Monday, reaching $54.17. The stock had a trading volume of 15,374,033 shares, compared to its average volume of 37,135,414. Bank of America Corporation has a twelve month low of $46.12 and a twelve month high of $65.22. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The firm has a market cap of $378.83 billion, a price-to-earnings ratio of 12.42, a PEG ratio of 0.86 and a beta of 1.21. The firm's fifty day simple moving average is $60.89 and its two-hundred day simple moving average is $56.35.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.13 by $0.08. The firm had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.Bank of America's quarterly revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.89 earnings per share. Equities analysts anticipate that Bank of America Corporation will post 4.63 EPS for the current fiscal year.

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a dividend of $0.32 per share. This is an increase from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Friday, September 4th. Bank of America's dividend payout ratio is 29.36%.

Bank of America News Roundup

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: BAC was identified as one of five oversold market areas that could rebound if market breadth improves and investors rotate beyond large-cap technology stocks. This supports the view that the shares have recovery potential after recent weakness. 5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves
• Positive Sentiment: Bank of America’s dividend profile remains a focus for income-oriented investors. A comparison with U.S. Bancorp highlights BAC’s dividend increase and the potential appeal of its scale and earnings capacity, although the stock’s income advantages depend partly on the interest-rate outlook. BAC vs. USB: Which Bank Stock Offers the Superior Dividend Income for Retirees?
• Positive Sentiment: Bank of America strategists expect two-year Treasury yields to rise further because of economic strength and possible additional Federal Reserve tightening. Higher rates can support banks’ loan yields and net interest income, potentially benefiting BAC, though they also increase broader market and credit risks. Two-Year Treasury Yields Could Rise Further Due to Robust Economy, BofA Says
• Neutral Sentiment: BAC disclosed higher indirect holdings in several Turkish companies through Merrill Lynch subsidiaries. The announcements appear related to client, custody, or trading activity and do not indicate a material change to Bank of America’s core investment outlook. Bank of America Lifts Indirect Stake in A1 Yenilenebilir Enerji to 3%
• Negative Sentiment: JPMorgan Chase reduced its price target for Bank of America, creating a valuation overhang and tempering the otherwise favorable rate and rotation narrative. Bank of America Stock Price Target Cut by JPMorgan Chase

Bank of America Company Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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