Founders Grove Wealth Partners LLC Acquires 6,109 Shares of Bank of America Corporation $BAC

Key Points

• Founders Grove Wealth Partners LLC increased its shares in Bank of America by 126.4% during the second quarter, bringing its total holdings to 10,942 shares valued at $518,000.
• Bank of America recently reported $0.89 EPS for the last quarter, exceeding analyst expectations, with a net margin of 14.81% and a year-over-year revenue increase of 4.3%.
• The company has authorized a $40 billion share buyback program, indicating confidence from its board that the stock may be undervalued.

Founders Grove Wealth Partners LLC increased its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 126.4% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 10,942 shares of the financial services provider's stock after purchasing an additional 6,109 shares during the quarter. Founders Grove Wealth Partners LLC's holdings in Bank of America were worth $518,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Nova Wealth Management Inc. grew its stake in shares of Bank of America by 75.2% in the second quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock worth $25,000 after purchasing an additional 227 shares during the last quarter. RMG Wealth Management LLC bought a new stake in Bank of America during the second quarter valued at $28,000. Acima Private Wealth LLC bought a new stake in Bank of America during the second quarter valued at $33,000. Cloud Capital Management LLC bought a new stake in Bank of America during the first quarter valued at $40,000. Finally, HighMark Wealth Management LLC boosted its position in Bank of America by 233.6% during the first quarter. HighMark Wealth Management LLC now owns 1,061 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 743 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Bank of America Price Performance

BAC stock opened at $48.86 on Tuesday. The stock has a market capitalization of $361.93 billion, a PE ratio of 14.29, a price-to-earnings-growth ratio of 1.89 and a beta of 1.33. The company's 50-day moving average is $49.67 and its 200-day moving average is $45.59. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. Bank of America Corporation has a 1 year low of $33.06 and a 1 year high of $52.88.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $26.79 billion. During the same quarter in the prior year, the firm earned $0.83 EPS. The business's revenue was up 4.3% on a year-over-year basis. Equities research analysts expect that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America announced that its board has authorized a share buyback program on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 26th. Investors of record on Friday, September 5th were issued a $0.28 dividend. The ex-dividend date was Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. This is a boost from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio (DPR) is currently 32.75%.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the sale, the insider owned 223,407 shares in the company, valued at $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.30% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts have commented on BAC shares. Erste Group Bank raised shares of Bank of America from a "hold" rating to a "buy" rating in a research report on Friday, October 3rd. Daiwa Capital Markets upped their price target on shares of Bank of America from $54.00 to $58.00 and gave the company an "outperform" rating in a research report on Wednesday, October 8th. Evercore ISI upped their price target on shares of Bank of America from $49.00 to $55.00 and gave the company an "outperform" rating in a research report on Tuesday, September 30th. Royal Bank Of Canada upped their price target on shares of Bank of America from $53.00 to $56.00 and gave the company an "outperform" rating in a research report on Wednesday, October 1st. Finally, Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price target on shares of Bank of America in a research report on Friday, June 27th. Twenty-one research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $54.64.

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.

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