Mackenzie Financial Corp Lowers Stake in Bank of America Corporation (NYSE:BAC)

Key Points

• Mackenzie Financial Corp has reduced its holdings in Bank of America by 0.5%, owning 3,341,638 shares worth approximately $139.45 million.
• Bank of America announced a rise in its quarterly dividend to $0.28 per share and a stock buyback plan of $40 billion, indicating strong corporate confidence.
• Analysts have mixed ratings on Bank of America, with a consensus rating of "Moderate Buy" and an average price target of $50.03 per share.

Mackenzie Financial Corp trimmed its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 0.5% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 3,341,638 shares of the financial services provider's stock after selling 16,624 shares during the quarter. Mackenzie Financial Corp's holdings in Bank of America were worth $139,447,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Hayek Kallen Investment Management grew its stake in shares of Bank of America by 2.0% during the fourth quarter. Hayek Kallen Investment Management now owns 12,022 shares of the financial services provider's stock worth $528,000 after buying an additional 233 shares during the last quarter. Continuum Advisory LLC grew its stake in shares of Bank of America by 1.4% during the fourth quarter. Continuum Advisory LLC now owns 16,707 shares of the financial services provider's stock worth $734,000 after buying an additional 237 shares during the last quarter. Menard Financial Group LLC grew its stake in shares of Bank of America by 1.2% during the fourth quarter. Menard Financial Group LLC now owns 20,620 shares of the financial services provider's stock worth $906,000 after buying an additional 240 shares during the last quarter. Northern Financial Advisors Inc grew its stake in shares of Bank of America by 1.8% during the first quarter. Northern Financial Advisors Inc now owns 14,383 shares of the financial services provider's stock worth $600,000 after buying an additional 252 shares during the last quarter. Finally, Hancock Whitney Corp grew its stake in shares of Bank of America by 0.3% during the fourth quarter. Hancock Whitney Corp now owns 89,203 shares of the financial services provider's stock worth $3,920,000 after buying an additional 260 shares during the last quarter. 70.71% of the stock is owned by institutional investors and hedge funds.

Bank of America Stock Performance

BAC traded down $1.68 on Friday, hitting $45.59. The company's stock had a trading volume of 26,823,057 shares, compared to its average volume of 42,866,570. The company's 50 day simple moving average is $46.22 and its 200-day simple moving average is $43.81. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a 12 month low of $33.06 and a 12 month high of $49.31. The firm has a market cap of $343.39 billion, a P/E ratio of 13.32, a price-to-earnings-growth ratio of 1.87 and a beta of 1.30.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, beating the consensus estimate 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 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 firm earned $0.83 EPS. The business's quarterly revenue was up 4.3% compared to the same quarter last year. Analysts forecast that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be given a dividend of $0.28 per share. This is an increase from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.5%. Bank of America's dividend payout ratio is 30.41%.

Bank of America announced that its board has authorized a stock buyback plan on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. The Goldman Sachs Group lifted their price target on shares of Bank of America from $46.00 to $52.00 and gave the stock a "buy" rating in a report on Tuesday, June 10th. Citigroup lifted their price target on shares of Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a report on Thursday, June 26th. TD Cowen assumed coverage on shares of Bank of America in a report on Thursday, May 15th. They set a "buy" rating and a $53.00 price target on the stock. UBS Group lifted their price target on shares of Bank of America from $46.00 to $50.00 and gave the stock a "buy" rating in a report on Wednesday, April 16th. Finally, JPMorgan Chase & Co. cut their price target on shares of Bank of America from $49.50 to $43.50 and set an "overweight" rating on the stock in a report on Thursday, April 3rd. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $50.13.

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.