King Luther Capital Management Corp Cuts Holdings in Bank of America Corporation (NYSE:BAC)

Key Points

• King Luther Capital Management Corp has reduced its holdings in Bank of America Corporation by 0.2%, now owning approximately 7.4 million shares valued at $309.6 million.
• Several institutional investors, including Price T Rowe Associates and Capital World Investors, have significantly increased their stakes in Bank of America, reflecting broader confidence in the company.
• Bank of America announced an increase in its quarterly dividend from $0.26 to $0.28, and has authorized a share repurchase program of up to $40 billion, indicating strong financial health and investor returns.

King Luther Capital Management Corp trimmed its holdings in shares of Bank of America Corporation (NYSE:BAC) by 0.2% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 7,418,076 shares of the financial services provider's stock after selling 16,093 shares during the quarter. Bank of America makes up approximately 1.4% of King Luther Capital Management Corp's investment portfolio, making the stock its 16th biggest holding. King Luther Capital Management Corp owned about 0.10% of Bank of America worth $309,556,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Price T Rowe Associates Inc. MD grew its stake in Bank of America by 10.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock worth $5,381,126,000 after buying an additional 11,691,451 shares during the last quarter. Capital World Investors grew its stake in 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 worth $3,876,853,000 after buying an additional 17,031,143 shares during the last quarter. Northern Trust Corp grew its stake in Bank of America by 17.2% during the 4th quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock worth $2,985,785,000 after buying an additional 9,980,859 shares during the last quarter. Bank of New York Mellon Corp grew its stake in Bank of America by 1.3% during the 1st quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock worth $2,521,218,000 after buying an additional 803,570 shares during the last quarter. Finally, Deutsche Bank AG grew its stake in Bank of America by 45.1% during 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 during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently commented on BAC shares. Piper Sandler lowered their price objective on shares of Bank of America from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, April 16th. Keefe, Bruyette & Woods lowered their price objective on shares of Bank of America from $55.00 to $52.00 and set an "outperform" rating for the company in a research note on Wednesday, April 16th. Cowen started coverage on shares of Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating for the company. UBS Group lifted their price objective on shares of Bank of America from $46.00 to $50.00 and gave the stock a "buy" rating in a research note on Wednesday, April 16th. Finally, Robert W. Baird reiterated a "neutral" rating and set a $52.00 price objective on shares of Bank of America in a research note on Friday, June 27th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $50.13.

Bank of America Trading Up 2.5%

Shares of Bank of America stock opened at $46.03 on Friday. The firm has a 50-day simple moving average of $46.43 and a two-hundred day simple moving average of $43.76. The company has a market cap of $340.94 billion, a P/E ratio of 13.46, a price-to-earnings-growth ratio of 1.79 and a beta of 1.31. Bank of America Corporation has a fifty-two week low of $33.06 and a fifty-two week high of $49.31. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80.

Bank of America (NYSE:BAC - Get Free Report) last issued 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. The business had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The company's revenue was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.83 earnings per share. As a group, equities analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.4%. This is an increase from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's payout ratio is currently 32.75%.

Bank of America announced that its board has approved a share repurchase program on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in shares. This buyback authorization authorizes the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Bank of America

In other Bank of America 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 completion of the transaction, the insider owned 223,407 shares in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.30% of the company's stock.

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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