Lmcg Investments LLC Sells 5,343 Shares of Bank of America Corporation $BAC

Key Points

• Lmcg Investments LLC sold 5,343 shares of Bank of America, reducing its stake by 2.7% in the second quarter, leaving it with 194,590 shares valued at $9.2 million.
• Bank of America announced a $40 billion stock buyback program, indicative of the board's belief that the stock is currently undervalued.
• The company also increased its quarterly dividend to $0.28 per share, marking a rise from its previous dividend of $0.26, which reflects positive financial performance.

Lmcg Investments LLC reduced its stake in shares of Bank of America Corporation (NYSE:BAC) by 2.7% in the second quarter, according to its most recent filing with the SEC. The fund owned 194,590 shares of the financial services provider's stock after selling 5,343 shares during the period. Lmcg Investments LLC's holdings in Bank of America were worth $9,208,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in BAC. Nova Wealth Management Inc. lifted its holdings in shares of Bank of America by 75.2% during the 2nd quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock worth $25,000 after acquiring an additional 227 shares during the last quarter. RMG Wealth Management LLC purchased a new position in Bank of America in the 2nd quarter worth $28,000. Acima Private Wealth LLC purchased a new position in Bank of America in the 2nd quarter worth $33,000. Cloud Capital Management LLC purchased a new position in Bank of America in the 1st quarter worth $40,000. Finally, HighMark Wealth Management LLC raised its position in Bank of America by 233.6% in the 1st quarter. HighMark Wealth Management LLC now owns 1,061 shares of the financial services provider's stock worth $43,000 after purchasing an additional 743 shares during the period. 70.71% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the sale, the insider owned 223,407 shares of the company's stock, valued at $10,180,656.99. The trade was a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.30% of the stock is owned by insiders.

Bank of America Trading Down 2.4%

Shares of BAC opened at $48.62 on Friday. The firm's 50-day moving average price is $49.61 and its 200-day moving average price is $45.50. The firm has a market capitalization of $360.12 billion, a price-to-earnings ratio of 14.22, a PEG ratio of 1.93 and a beta of 1.33. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $52.88.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of ($22,273.00) million for the quarter, compared to analyst estimates 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 for the quarter was up 4.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.83 EPS. Sell-side analysts anticipate that Bank of America Corporation will post 3.7 EPS for the current year.

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

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 26th. Stockholders of record on Friday, September 5th were paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is presently 32.75%.

Analyst Ratings Changes

A number of brokerages recently commented on BAC. Seaport Global Securities lifted 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, October 6th. Erste Group Bank upgraded shares of Bank of America from a "hold" rating to a "buy" rating in a research report on Friday, October 3rd. Hsbc Global Res cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Robert W. Baird reiterated a "neutral" rating and issued a $52.00 target price on shares of Bank of America in a research report on Friday, June 27th. Finally, HSBC lifted 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. Twenty-one analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $54.64.

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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