Gabelli Funds LLC Reduces Holdings in Bank of America Corporation $BAC

Key Points

• Gabelli Funds LLC reduced its stake in Bank of America Corporation by 1.6%, selling 5,702 shares and holding 350,730 shares worth approximately $14.63 million at the end of the period.
• Bank of America recently declared a higher quarterly dividend of $0.28 per share, demonstrating a commitment to returning value to shareholders, with a projected annual yield of 2.2%.
• Analysts predict Bank of America will post an earnings per share (EPS) of 3.7 for the current fiscal year, with several firms raising their price targets for the stock, highlighting continued growth potential.

Gabelli Funds LLC lessened its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 1.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 350,730 shares of the financial services provider's stock after selling 5,702 shares during the period. Gabelli Funds LLC's holdings in Bank of America were worth $14,636,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Vega Investment Solutions purchased a new position in shares of Bank of America during the 4th quarter valued at $30,000. Spurstone Advisory Services LLC purchased a new position in shares of Bank of America during the 4th quarter valued at $34,000. Wood Tarver Financial Group LLC purchased a new position in shares of Bank of America during the 4th quarter valued at $38,000. Mascagni Wealth Management Inc. bought a new stake in shares of Bank of America during the 4th quarter valued at $40,000. Finally, Cloud Capital Management LLC bought a new stake in shares of Bank of America during the 1st quarter valued at $40,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

Insider Activity

In other news, insider James P. Demare sold 148,391 shares of the company's 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 transaction, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.30% of the company's stock.

Bank of America Price Performance

NYSE BAC traded up $0.27 during trading on Friday, reaching $50.76. The company's stock had a trading volume of 32,491,463 shares, compared to its average volume of 34,794,552. The stock has a market capitalization of $375.98 billion, a PE ratio of 14.84, a P/E/G ratio of 1.97 and a beta of 1.31. 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 firm has a fifty day moving average of $47.61 and a 200 day moving average of $43.95. Bank of America Corporation has a one year low of $33.06 and a one year high of $50.92.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The business had revenue of ($22,273.00) million for the quarter, compared to analyst estimates of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The company's quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.83 EPS. Analysts expect that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America declared that its board has initiated a share repurchase program on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 11.1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's management believes its shares are undervalued.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. 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 dividend payout ratio (DPR) is currently 32.75%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on BAC shares. Truist Financial boosted their price objective on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. TD Cowen started coverage on Bank of America in a research note on Thursday, May 15th. They set a "buy" rating and a $53.00 price objective on the stock. Hsbc Global Res lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. Baird R W lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 27th. Finally, The Goldman Sachs Group boosted their price objective on Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a research note on Tuesday, June 10th. Seventeen 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 a consensus price target of $50.13.

Bank of America Company 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.