Headlands Technologies LLC Cuts Holdings in Bank of America Corporation (NYSE:BAC)

Key Points

• Headlands Technologies LLC has reduced its holdings in Bank of America by 64.3% in the 1st quarter, selling 250,049 shares and now owns 139,015 shares valued at approximately $5.8 million.
• Bank of America recently increased its dividend to $0.28 per share, up from $0.26, representing a 2.5% yield, and has initiated a $40 billion share buyback plan.
• Analysts have mixed views on Bank of America, with a consensus target price of $50.13 and numerous "buy" ratings, indicating optimism about the stock's future performance.

Headlands Technologies LLC decreased its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 64.3% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 139,015 shares of the financial services provider's stock after selling 250,049 shares during the period. Headlands Technologies LLC's holdings in Bank of America were worth $5,801,000 at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in BAC. Capital World Investors lifted its stake in shares of Bank of America by 23.9% during the 4th quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider's stock valued at $3,876,853,000 after buying an additional 17,031,143 shares in the last quarter. Deutsche Bank AG increased its stake in Bank of America by 45.1% in the 1st quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock worth $2,007,718,000 after buying an additional 14,960,086 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Bank of America by 10.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock valued at $5,381,126,000 after acquiring an additional 11,691,451 shares in the last quarter. Northern Trust Corp boosted its stake in shares of Bank of America by 17.2% in the fourth quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock worth $2,985,785,000 after acquiring an additional 9,980,859 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its position in shares of Bank of America by 31.1% during the fourth quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 39,051,595 shares of the financial services provider's stock worth $1,716,318,000 after purchasing an additional 9,258,040 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Insider Transactions at Bank of America

In other news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction on Friday, August 1st. The stock was sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the sale, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.30% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Cfra Research boosted their price target on Bank of America to $47.00 and gave the stock a "buy" rating in a report on Wednesday, April 16th. Piper Sandler lowered their target price on shares of Bank of America from $45.00 to $42.00 and set a "neutral" rating on the stock in a report on Wednesday, April 16th. Barclays cut their target price on shares of Bank of America from $58.00 to $54.00 and set an "overweight" rating for the company in a research note on Wednesday, April 16th. Baird R W downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Finally, Wall Street Zen downgraded shares of Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. One analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have given a buy rating to the company's stock. According to data from MarketBeat, Bank of America has an average rating of "Moderate Buy" and an average price target of $50.13.

Bank of America Trading Up 2.5%

Shares of BAC traded up $1.11 during midday trading on Friday, hitting $46.03. The stock had a trading volume of 37,117,565 shares, compared to its average volume of 37,639,604. The stock's 50 day moving average is $46.43 and its 200 day moving average is $43.77. The firm has a market cap of $340.94 billion, a PE ratio of 13.46, a price-to-earnings-growth ratio of 1.74 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. Bank of America Corporation has a 1 year low of $33.06 and a 1 year high of $49.31.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data 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. 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 analyst estimates of $26.79 billion. During the same period in the prior year, the company posted $0.83 EPS. The firm's revenue for the quarter was up 4.3% on a year-over-year basis. As a group, analysts forecast that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America announced that its Board of Directors has initiated a share repurchase plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 2.4%. 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 presently 30.41%.

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.