Focused Alpha LLC Buys 13,638 Shares of Bank of America Corporation $BAC

Key Points

• Focused Alpha LLC initiated a Bank of America stake by purchasing 13,638 shares valued at approximately $742,000 during the third quarter. Institutional investors and hedge funds collectively own 70.71% of BAC.
• Bank of America’s latest quarterly results fell slightly short of expectations, with $1.08 in EPS versus $1.10 forecast and revenue of $29.96 billion versus $30.58 billion expected; revenue still increased 3.2% year over year.
• The bank increased its quarterly dividend to $0.32 per share, or $1.28 annually, representing a 2.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $62.52.

Focused Alpha LLC purchased a new stake in Bank of America Corporation (NYSE:BAC - Free Report) during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 13,638 shares of the financial services provider's stock, valued at approximately $742,000.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. Legal & General Group Plc bought a new stake in Bank of America in the second quarter valued at approximately $2,571,060,000. Amundi boosted its stake in shares of Bank of America by 12.5% in the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock valued at $2,066,274,000 after purchasing an additional 4,721,969 shares during the last quarter. Deutsche Bank AG acquired a new stake in shares of Bank of America during the second quarter worth $2,359,172,000. Bank of New York Mellon Corp bought a new position in Bank of America during the second quarter worth $2,313,953,000. Finally, Dimensional Fund Advisors LP raised its position in shares of Bank of America by 1.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock worth $1,517,599,000 after acquiring an additional 561,413 shares in the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Price Performance

Shares of NYSE:BAC opened at $50.38 on Tuesday. Bank of America Corporation has a twelve month low of $46.12 and a twelve month high of $65.22. The stock's 50 day moving average is $58.78 and its 200-day moving average is $56.76. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 1.17. The firm has a market capitalization of $352.26 billion, a price-to-earnings ratio of 11.97, a PEG ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.10 by ($0.02). Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The business had revenue of $29.96 billion for the quarter, compared to the consensus estimate of $30.58 billion. During the same quarter last year, the firm posted $1.06 EPS. The business's revenue for the quarter was up 3.2% compared to the same quarter last year. Sell-side analysts forecast that Bank of America Corporation will post 4.54 EPS for the current fiscal year.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a $0.32 dividend. The ex-dividend date was Friday, September 4th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.5%. This is a boost from Bank of America's previous quarterly dividend of $0.28. Bank of America's dividend payout ratio (DPR) is currently 30.40%.

Bank of America News Summary

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

• Positive Sentiment: Analysts at Morgan Stanley reportedly believe much of the regulatory and earnings-related bad news may already be reflected in the share price, arguing that BAC could have meaningful upside if its operating performance improves. Bank of America's bad news may not be what investors think
• Positive Sentiment: Bank of America has reduced its share count by nearly one-third over the past decade, highlighting a long-term capital-allocation benefit for remaining shareholders. Bank of America Has Cut Its Share Count by Nearly a Third in 10 Years
• Positive Sentiment: Bank of America analysts continue to see a case for an October Federal Reserve rate hike, which could support bank net-interest income if higher rates persist. Why BofA still sees an October Fed rate hike

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Rothschild & Co Redburn set a $72.00 target price on Bank of America in a research report on Tuesday, October 6th. Royal Bank Of Canada dropped their price target on Bank of America from $65.00 to $60.00 and set an "outperform" rating on the stock in a research note on Thursday. Argus set a $70.00 price objective on shares of Bank of America in a research report on Wednesday, July 15th. Wells Fargo & Company dropped their target price on shares of Bank of America from $69.00 to $64.00 and set an "overweight" rating on the stock in a research report on Thursday. Finally, Truist Financial reduced their price target on shares of Bank of America from $62.00 to $58.00 and set a "buy" rating for the company in a report on Thursday, October 15th. Twenty analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $62.52.

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company's consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.

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