GQG Partners LLC Makes New $180.43 Million Investment in Bank of America Corporation $BAC

Key Points

• GQG Partners acquired 3.17 million Bank of America shares during the second quarter, worth approximately $180.4 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America reported quarterly earnings of $1.21 per share, beating estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion.
• The bank increased its quarterly dividend from $0.28 to $0.32 per share, implying an annualized dividend of $1.28 and a 2.0% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $64.08.

GQG Partners LLC purchased a new stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 3,166,564 shares of the financial services provider's stock, valued at approximately $180,432,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Bank of America during the second quarter valued at approximately $537,000. CFO4Life Group LLC bought a new position in Bank of America in the 2nd quarter valued at approximately $782,000. Quantbot Technologies LP purchased a new stake in Bank of America during the 2nd quarter valued at $4,297,000. Evolve Private Wealth LLC purchased a new stake in Bank of America during the 2nd quarter valued at $1,141,000. Finally, Martin & Co. Inc. TN bought a new stake in shares of Bank of America in the 2nd quarter worth $2,638,000. Institutional investors own 70.71% of the company's stock.

Bank of America Stock Up 0.3%

Shares of BAC stock opened at $62.50 on Wednesday. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. Bank of America Corporation has a 12 month low of $46.12 and a 12 month high of $65.22. The stock has a market cap of $437.04 billion, a P/E ratio of 14.33, a P/E/G ratio of 0.99 and a beta of 1.17. The company has a 50 day simple moving average of $60.84 and a two-hundred day simple moving average of $54.78.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $31.56 billion for the quarter, compared to analysts' expectations of $30.78 billion. During the same quarter last year, the company posted $0.89 EPS. The company's revenue was up 19.6% compared to the same quarter last year. On average, research analysts expect that Bank of America Corporation will post 4.68 earnings per share for the current year.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.32 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.28 dividend on an annualized basis and a yield of 2.0%. This is an increase from Bank of America's previous quarterly dividend of $0.28. Bank of America's payout ratio is 25.69%.

Key Bank of America News

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

• Positive Sentiment: Bank of America’s analysts continue to favor value stocks, arguing they are well positioned in an environment of higher interest rates and inflation. This supports the broader investment case for BAC, which trades at a relatively moderate earnings multiple and could benefit from durable net interest income. Stick with value stocks until everyone is talking about them
• Positive Sentiment: BofA Global Research says Federal Reserve corporate-credit facilities remain available to limit downside risks in a debt-heavy artificial-intelligence investment cycle. A continued backstop could reduce systemic credit concerns that might otherwise pressure large banks. The debt-fueled AI build-out may already be too big to fail
• Neutral Sentiment: Strategist Michael Hartnett remains bullish on gold, citing concerns about U.S. government debt and currency debasement. The view may support trading and advisory activity at BAC, although it is not a direct change to the bank’s earnings outlook. Why Bank of America strategist Michael Hartnett says the trade is still long gold
• Neutral Sentiment: Bank of America disclosed several changes to indirect equity holdings through Merrill Lynch, including a stake above 10% in Lakefront Biotherapeutics and a reduced position in Hidropar. These appear to be portfolio or client-related transactions rather than a material strategic investment in BAC’s own business. Bank of America builds 10% stake in Lakefront Biotherapeutics
• Negative Sentiment: Bank of America reportedly spends at least $250 million annually on GLP-1 weight-loss drugs for employees. Management views the benefit as an investment in worker health, but the significant recurring expense could weigh on operating costs if it does not produce measurable savings in health-care claims or employee retention. Bank of America is spending $250 million a year on weight loss drugs for employees

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on BAC. Royal Bank Of Canada upped their price target on Bank of America from $59.00 to $65.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Morgan Stanley boosted their target price on Bank of America from $61.00 to $67.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. Wells Fargo & Company upped their target price on shares of Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Evercore set a $63.00 price target on shares of Bank of America and gave the company an "outperform" rating in a report on Monday, July 6th. Finally, UBS Group lifted their price target on shares of Bank of America from $68.00 to $70.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd. Twenty-one investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $64.08.

Bank of America Company Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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