KLP Kapitalforvaltning AS Has $133.44 Million Stake in Bank of America Corporation $BAC

Key Points

• KLP Kapitalforvaltning AS increased its stake in Bank of America by 6.5% during the second quarter, now holding 2,819,941 shares valued at approximately $133.44 million.
• Bank of America recently declared a share buyback program authorizing the repurchase of up to $40 billion in shares, indicating that the company's board believes its stock may be undervalued.
• The company increased its quarterly dividend to $0.28 per share, reflecting a growth from the previous dividend and a dividend yield of 2.2%.

KLP Kapitalforvaltning AS boosted its position in Bank of America Corporation (NYSE:BAC) by 6.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 2,819,941 shares of the financial services provider's stock after buying an additional 172,400 shares during the period. Bank of America makes up 0.6% of KLP Kapitalforvaltning AS's holdings, making the stock its 23rd biggest holding. KLP Kapitalforvaltning AS's holdings in Bank of America were worth $133,440,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. RMG Wealth Management LLC bought a new stake in Bank of America in the second quarter valued at $28,000. Meitav Investment House Ltd. increased its stake in Bank of America by 83.1% in the second quarter. Meitav Investment House Ltd. now owns 173,546 shares of the financial services provider's stock valued at $8,208,000 after purchasing an additional 78,744 shares in the last quarter. Bennett Associates Wealth Management bought a new stake in Bank of America in the second quarter valued at $277,000. Mraz Amerine & Associates Inc. bought a new stake in Bank of America in the second quarter valued at $339,000. Finally, Heck Capital Advisors LLC bought a new stake in Bank of America in the second quarter valued at $378,000. 70.71% of the stock is owned by institutional investors.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the business'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 sale, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. The trade was a 39.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Bank of America Trading Down 0.6%

Shares of BAC stock opened at $50.36 on Tuesday. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $52.88. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The company has a 50-day simple moving average of $49.42 and a two-hundred day simple moving average of $45.35. The company has a market capitalization of $373.01 billion, a price-to-earnings ratio of 14.73, a PEG ratio of 1.96 and a beta of 1.33.

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 (EPS) 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 business had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same period in the prior year, the firm posted $0.83 EPS. The firm's quarterly revenue was up 4.3% compared to the same quarter last year. Research analysts anticipate that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

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

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 26th. Stockholders of record on Friday, September 5th were given a dividend of $0.28 per share. The ex-dividend date of this dividend was Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. This is a boost from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is currently 32.75%.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Bank of America from $56.00 to $58.00 and gave the company a "buy" rating in a research note on Tuesday, September 30th. Evercore ISI boosted their target price on shares of Bank of America from $49.00 to $55.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 30th. HSBC boosted their target price on shares of Bank of America from $51.00 to $53.00 and gave the stock a "hold" rating in a research report on Thursday, October 2nd. Truist Financial boosted their target price on shares of Bank of America from $51.00 to $56.00 and gave the stock a "buy" rating in a research report on Tuesday, September 23rd. Finally, Seaport Global Securities boosted their target price on shares of Bank of America from $59.00 to $66.00 and gave the stock a "buy" rating in a research report on Monday. Nineteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $53.38.

Bank of America 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.

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