Lighthouse Financial Services Inc. ADV Takes $3.62 Million Position in Bank of America Corporation $BAC

Key Points

• Lighthouse Financial Services disclosed a new fourth-quarter stake in Bank of America, buying 65,750 shares worth about $3.62 million. The position makes BAC its 29th-largest holding and about 0.8% of its portfolio.
• Bank of America reported better-than-expected Q1 earnings, with EPS of $1.11 versus the $1.00 estimate and revenue of $30.27 billion, up 10.7% year over year. Analysts now expect full-year EPS of 4.46.
• The stock was trading around $51.26 after a recent decline, while Wall Street remains generally constructive: analysts have a Moderate Buy rating and an average price target of $61.06. The company also announced a quarterly dividend of $0.28 per share, implying a 2.2% yield.

Lighthouse Financial Services Inc. ADV acquired a new stake in Bank of America Corporation (NYSE:BAC - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 65,750 shares of the financial services provider's stock, valued at approximately $3,616,000. Bank of America accounts for 0.8% of Lighthouse Financial Services Inc. ADV's portfolio, making the stock its 29th biggest holding.

Other institutional investors and hedge funds have also bought and sold shares of the company. Meridian Wealth Management LLC raised its stake in Bank of America by 54.6% in the third quarter. Meridian Wealth Management LLC now owns 58,308 shares of the financial services provider's stock valued at $3,008,000 after purchasing an additional 20,591 shares in the last quarter. Lockheed Martin Investment Management Co. raised its stake in Bank of America by 15.9% in the third quarter. Lockheed Martin Investment Management Co. now owns 629,610 shares of the financial services provider's stock valued at $32,482,000 after purchasing an additional 86,290 shares in the last quarter. World Equity Group Inc. raised its stake in Bank of America by 21.8% in the third quarter. World Equity Group Inc. now owns 73,188 shares of the financial services provider's stock valued at $3,779,000 after purchasing an additional 13,119 shares in the last quarter. AdvisorShares Investments LLC purchased a new stake in Bank of America in the third quarter valued at approximately $482,000. Finally, Mufg Securities Americas Inc. raised its stake in Bank of America by 26.6% in the third quarter. Mufg Securities Americas Inc. now owns 198,918 shares of the financial services provider's stock valued at $10,262,000 after purchasing an additional 41,809 shares in the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Stock Down 2.8%

Shares of NYSE BAC opened at $51.26 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.18. Bank of America Corporation has a 52 week low of $41.69 and a 52 week high of $57.55. The firm's fifty day moving average is $50.44 and its 200 day moving average is $52.51. The company has a market cap of $363.79 billion, a price-to-earnings ratio of 12.69, a PEG ratio of 0.89 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 EPS for the quarter, topping the consensus estimate of $1.00 by $0.11. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The company had revenue of $30.27 billion for the quarter, compared to the consensus estimate of $29.72 billion. During the same period in the previous year, the firm earned $0.90 earnings per share. The firm's revenue for the quarter was up 10.7% on a year-over-year basis. On average, equities research analysts expect that Bank of America Corporation will post 4.46 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 $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, June 5th. Bank of America's payout ratio is presently 27.72%.

Trending Headlines about Bank of America

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

• Positive Sentiment: UBS raised its price target on Bank of America to $63 from $62, reinforcing a constructive Wall Street view and suggesting further upside from current levels. UBS Raises PT
• Positive Sentiment: Bank of America expanded its defense financing role and is helping support drone and robotics production, which could translate into more lending, fee income, and long-term client relationships. Defense Financing
• Positive Sentiment: The bank acted as lead lender on a $1.8 billion refinance of 9 West 57th Street, highlighting continued strength in commercial real estate financing activity. 9 West 57th Refinance
• Neutral Sentiment: Bank of America shareholders backed the current leadership and governance structure at the annual meeting, reducing governance uncertainty but not likely driving a major near-term stock reaction. Shareholder Vote
• Neutral Sentiment: Reuters reported the hiring of tech dealmaker Richard Hardegree as vice chair of M&A, a sign of continued investment banking leadership buildup, though the stock impact is likely limited for now. M&A Hiring
• Neutral Sentiment: Bank of America’s commentary on card spending pointed to a sudden slowdown in U.S. consumer activity, but the bank said it is not yet sure of the cause. Spending Slump
• Negative Sentiment: High-profile insider selling by Geoffrey Greener, who sold about $6.7 million of BAC shares, is weighing on sentiment and can signal caution to investors. Insider Sale
• Negative Sentiment: Reports that Berkshire-related holder Greg Abel continued trimming BAC for a seventh straight quarter add to concerns about reduced conviction from a major long-term investor. Greg Abel Sells

Wall Street Analysts Forecast Growth

Several research firms have commented on BAC. Evercore lifted their price target on shares of Bank of America from $55.00 to $61.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. TD Cowen decreased their target price on shares of Bank of America from $66.00 to $64.00 and set a "buy" rating on the stock in a research report on Thursday, January 15th. Keefe, Bruyette & Woods lifted their target price on shares of Bank of America from $63.00 to $64.00 and gave the stock an "outperform" rating in a research report on Thursday, April 16th. Autonomous Res decreased their target price on shares of Bank of America from $62.00 to $54.00 and set a "neutral" rating on the stock in a research report on Monday, April 6th. Finally, Piper Sandler lifted their target price on shares of Bank of America from $53.00 to $59.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Twenty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Bank of America presently has an average rating of "Moderate Buy" and an average target price of $61.06.

Insider Activity

In related news, insider Bernard A. Mensah sold 94,000 shares of Bank of America stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $46.94, for a total value of $4,412,360.00. Following the transaction, the insider directly owned 170,184 shares of the company's stock, valued at $7,988,436.96. The trade was a 35.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Thomas M. Scrivener sold 50,000 shares of Bank of America stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $49.82, for a total transaction of $2,491,000.00. Following the completion of the transaction, the insider directly owned 227,973 shares in the company, valued at approximately $11,357,614.86. The trade was a 17.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 354,588 shares of company stock valued at $17,814,296 in the last three months. Corporate insiders own 0.27% of the company's stock.

Bank of America 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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