3,644,820 Shares in Bank of America Corporation $BAC Purchased by Maverick Capital Ltd.

Key Points

• Maverick Capital Ltd. has invested $152.1 million in Bank of America, acquiring approximately 3.64 million shares, making it the firm's 10th largest holding.
• Bank of America recently declared an increase in its quarterly dividend to $0.28 per share, up from $0.26, indicating a positive signal about its financial health.
• Bank of America has authorized a $40 billion share buyback program, allowing the repurchase of up to 11.1% of its stock, which generally reflects management's belief in the stock's undervaluation.

Maverick Capital Ltd. acquired a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 3,644,820 shares of the financial services provider's stock, valued at approximately $152,098,000. Bank of America comprises 2.7% of Maverick Capital Ltd.'s investment portfolio, making the stock its 10th biggest position.

Other institutional investors also recently made changes to their positions in the company. Bank of New York Mellon Corp boosted its position in shares of Bank of America by 1.3% during the first quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock worth $2,521,218,000 after buying an additional 803,570 shares during the period. Deutsche Bank AG lifted its stake in Bank of America by 45.1% during the first quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock valued at $2,007,718,000 after purchasing an additional 14,960,086 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Bank of America by 12.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,092,517 shares of the financial services provider's stock worth $1,981,816,000 after acquiring an additional 5,092,504 shares in the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main boosted its position in shares of Bank of America by 31.1% in the 4th quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 39,051,595 shares of the financial services provider's stock valued at $1,716,318,000 after purchasing an additional 9,258,040 shares during the period. Finally, Dimensional Fund Advisors LP increased its position in shares of Bank of America by 0.6% in the first quarter. Dimensional Fund Advisors LP now owns 31,956,699 shares of the financial services provider's stock worth $1,333,351,000 after acquiring an additional 188,638 shares in the last quarter. 70.71% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

BAC has been the subject of a number of research analyst reports. Truist Financial increased their price target on shares of Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Royal Bank Of Canada set a $53.00 target price on Bank of America and gave the stock an "outperform" rating in a report on Monday, June 30th. Oppenheimer lifted their price objective on Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Cowen started coverage on shares of Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating for the company. Finally, The Goldman Sachs Group raised their price objective on Bank of America from $46.00 to $52.00 and gave the stock a "buy" rating in a research report on Tuesday, June 10th. Sixteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $50.39.

Insider Transactions at Bank of America

In related news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction that occurred on 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 transaction, the insider directly 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 Securities & Exchange Commission, which is available through the SEC website. 0.30% of the stock is currently owned by company insiders.

Bank of America Trading Down 0.7%

Shares of NYSE BAC traded down $0.38 during midday trading on Wednesday, reaching $50.05. 34,135,329 shares of the stock were exchanged, compared to its average volume of 32,251,908. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. The business has a 50-day simple moving average of $47.77 and a two-hundred day simple moving average of $44.00. Bank of America Corporation has a 12 month low of $33.06 and a 12 month high of $50.92. The company has a market capitalization of $370.68 billion, a price-to-earnings ratio of 14.84, a P/E/G ratio of 1.97 and a beta of 1.34.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 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 company 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 business posted $0.83 EPS. The company's quarterly revenue was up 4.3% on a year-over-year basis. As a group, equities research analysts expect that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued a dividend of $0.28 per share. This is a positive change from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.2%. Bank of America's dividend payout ratio (DPR) is 30.41%.

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

About Bank of America

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.