J. Derek Lewis & Associates Inc. Invests $1.30 Million in Bank of America Corporation $BAC

Key Points

• J. Derek Lewis & Associates disclosed a new stake in Bank of America, buying 23,606 shares worth about $1.3 million in the fourth quarter.
• Institutional interest in BAC remains strong, with several other investors adding to positions; overall, institutions and hedge funds now own 70.71% of the stock.
• Bank of America reported solid recent results, beating quarterly EPS and revenue estimates, and it also announced a $0.28 per share dividend to be paid on June 26, implying a 2.0% annual yield.

J. Derek Lewis & Associates Inc. purchased a new stake in Bank of America Corporation (NYSE:BAC - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 23,606 shares of the financial services provider's stock, valued at approximately $1,298,000.

A number of other institutional investors have also recently added to or reduced their stakes in BAC. Purpose Unlimited Inc. purchased a new stake in shares of Bank of America in the fourth quarter valued at about $65,000. Cornerstone Planning LLC acquired a new stake in Bank of America during the fourth quarter worth about $4,250,000. Bank of New Hampshire raised its stake in Bank of America by 1.8% during the fourth quarter. Bank of New Hampshire now owns 53,504 shares of the financial services provider's stock worth $2,943,000 after purchasing an additional 956 shares during the period. World Investment Advisors raised its stake in Bank of America by 45.1% during the fourth quarter. World Investment Advisors now owns 244,191 shares of the financial services provider's stock worth $13,431,000 after purchasing an additional 75,920 shares during the period. Finally, Nalls Sherbakoff Group LLC acquired a new position in Bank of America in the 4th quarter valued at about $136,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

More Bank of America News

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

• Positive Sentiment: Bank of America’s internal research is being cited as bullish for the bank sector, with commentary that higher rates can still support net interest income even as the Fed holds rates steady, which could help BAC’s earnings outlook. Fed Holds Rates But Signals Hike: Key Takeaways for Bank Investors
• Positive Sentiment: Bank of America also drew attention for its view that lower-income households may be stabilizing, suggesting the consumer backdrop could be improving and reducing recession fears that would hurt loan growth and credit quality. Miserable K-shaped economy might actually be fading, as lower-income families bounce back, says Bank of America
• Neutral Sentiment: Bank of America revealed a roughly 3% indirect stake in Qiagen and reported similar holdings disclosures for Umicore; these are portfolio/ownership updates and are unlikely to have a direct impact on BAC’s core banking results. Bank of America Reveals 3.01% Indirect Stake in Qiagen Umicore - Transparency notifications by Bank of America Corporation
• Neutral Sentiment: Reports that a Fed official spoke at a private Bank of America client dinner may attract headlines, but it appears more like a reputational/regulatory talking point than a direct earnings driver. The Fed's vice chair of supervision spoke at a private dinner Bank of America hosted for clients hours after the central bank announced its latest policy decision
• Negative Sentiment: Bank of America is facing fresh scrutiny tied to regulators’ upcoming “debanking” findings, which could create policy and compliance concerns for large banks like BAC. Bank Of America (BAC) Faces Fresh Scrutiny As Regulators Ready Debanking Findings

Bank of America Stock Up 0.1%

Bank of America stock opened at $56.26 on Friday. The company has a market capitalization of $399.27 billion, a PE ratio of 13.93, a price-to-earnings-growth ratio of 0.95 and a beta of 1.18. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.81 and a current ratio of 0.81. Bank of America Corporation has a fifty-two week low of $44.75 and a fifty-two week high of $57.98. The firm has a 50 day moving average price of $52.91 and a 200 day moving average price of $52.54.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $1.11 EPS for the quarter, topping analysts' consensus estimates of $1.00 by $0.11. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The company had revenue of $30.27 billion for the quarter, compared to analysts' expectations of $29.72 billion. During the same period in the prior year, the firm earned $0.90 earnings per share. The firm's revenue was up 10.7% compared to the same quarter last year. Research analysts expect that Bank of America Corporation will post 4.45 earnings per share for the current year.

Bank of America Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 5th will be paid a dividend of $0.28 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.12 annualized dividend and a yield of 2.0%. Bank of America's dividend payout ratio is presently 27.72%.

Insider Buying and Selling

In related news, insider Geoffrey S. Greener sold 126,756 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the completion of the transaction, the insider directly owned 1,373,397 shares in the company, valued at $72,803,774.97. This trade represents a 8.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.27% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. UBS Group increased their price target on shares of Bank of America from $62.00 to $63.00 in a research note on Wednesday, May 6th. Morgan Stanley lowered their price objective on Bank of America from $67.00 to $61.00 and set an "overweight" rating for the company in a research report on Tuesday, March 31st. Argus lifted their target price on Bank of America from $59.00 to $62.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Oppenheimer upped their price target on Bank of America from $58.00 to $61.00 and gave the company an "outperform" rating in a research note on Thursday, April 16th. Finally, Evercore cut their price objective on Bank of America from $70.00 to $61.00 and set an "outperform" rating for the company in a research report on Friday, May 15th. Twenty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and an average price target of $61.06.

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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