LGT Fund Management Co Ltd. Has $10.44 Million Position in Bank of America Corporation (NYSE:BAC)

Key Points

• LGT Fund Management Co Ltd. increased its stake in Bank of America Corporation by 36.6%, holding 250,246 shares valued at approximately $10.44 million.
• Bank of America recently declared a quarterly dividend of $0.28 per share, representing an annualized yield of 2.4%, an increase from its previous dividend of $0.26.
• The company also approved a stock buyback plan allowing it to repurchase up to $40.00 billion in shares, reflecting confidence in the stock's valuation.

LGT Fund Management Co Ltd. increased its stake in shares of Bank of America Corporation (NYSE:BAC) by 36.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 250,246 shares of the financial services provider's stock after buying an additional 67,044 shares during the quarter. Bank of America comprises approximately 0.9% of LGT Fund Management Co Ltd.'s investment portfolio, making the stock its 27th biggest position. LGT Fund Management Co Ltd.'s holdings in Bank of America were worth $10,443,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in BAC. Vega Investment Solutions bought a new stake in Bank of America during the fourth quarter worth $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in Bank of America during the fourth quarter worth $31,000. Spurstone Advisory Services LLC bought a new stake in Bank of America during the fourth quarter worth $34,000. Wood Tarver Financial Group LLC bought a new stake in Bank of America during the fourth quarter worth $38,000. Finally, Mascagni Wealth Management Inc. bought a new stake in Bank of America during the fourth quarter worth $40,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Stock Performance

Shares of Bank of America stock opened at $46.15 on Tuesday. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The business has a 50-day moving average price of $46.47 and a two-hundred day moving average price of $43.74. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $49.31. The company has a market cap of $341.85 billion, a P/E ratio of 13.50, a PEG ratio of 1.79 and a beta of 1.31.

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

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders 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 30.41%.

Bank of America announced that its Board of Directors has approved a stock buyback 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 repurchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Keefe, Bruyette & Woods cut their target price on 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. Piper Sandler cut their target price on 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. Truist Financial increased their price target on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Barclays dropped their price target on 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. Finally, Cfra Research increased their price target on Bank of America to $47.00 and gave the company a "buy" rating in a research note on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $50.13.

Insiders Place Their Bets

In other Bank of America news, insider James P. Demare sold 148,391 shares of the stock in a transaction dated 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 position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

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.

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