MidFirst Bank Invests $4.32 Million in Bank of America Corporation $BAC

Key Points

• MidFirst Bank acquired 75,735 shares of Bank of America during the second quarter, valued at approximately $4.32 million. Institutional investors collectively own 70.71% of BAC’s outstanding stock.
• Bank of America exceeded quarterly expectations, reporting $1.21 in EPS and $31.56 billion in revenue, with revenue up 19.6% year over year. The bank also raised its quarterly dividend to $0.32 per share, or $1.28 annually.
• Analysts maintain a positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $64.08. However, commentary warns that crowded positioning and recent share-price weakness could increase downside risk during a broader market pullback.

MidFirst Bank purchased a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 75,735 shares of the financial services provider's stock, valued at approximately $4,315,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in BAC. Norges Bank purchased a new position in shares of Bank of America in the 4th quarter valued at approximately $4,774,210,000. Capital International Investors acquired a new position in shares of Bank of America in the fourth quarter valued at approximately $2,357,461,000. Deutsche Bank AG purchased a new stake in shares of Bank of America during the second quarter worth approximately $2,359,172,000. Bank of New York Mellon Corp purchased a new stake in shares of Bank of America during the second quarter worth approximately $2,313,953,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Bank of America by 640.5% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 46,516,728 shares of the financial services provider's stock valued at $2,399,798,000 after buying an additional 40,235,201 shares during the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on BAC shares. Keefe, Bruyette & Woods boosted their price objective on shares of Bank of America from $67.00 to $70.00 and gave the company an "outperform" rating in a research note on Wednesday, July 15th. Jefferies Financial Group restated a "buy" rating and issued a $75.00 target price on shares of Bank of America in a research note on Tuesday, July 14th. Wells Fargo & Company lifted their target price on shares of Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Evercore set a $63.00 price target on shares of Bank of America and gave the stock an "outperform" rating in a research note on Monday, July 6th. Finally, Truist Financial increased their price target on shares of Bank of America from $64.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 15th. Twenty-one investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and an average price target of $64.08.

Bank of America News Summary

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

• Positive Sentiment: Bank of America’s active participation in the August bond market demonstrates continued access to wholesale funding and allows it to extend maturities through senior unsecured offerings. Its latest quarterly results also showed strong earnings and revenue growth, providing a fundamental counterweight to near-term concerns. Bank of America's Stock Market Signal Flashes Warning
• Neutral Sentiment: Bank of America increased its indirect stake in Turkish industrial technology company Hidropar to 5.386%. The disclosure indicates portfolio or client-related investment activity, but it is not expected to materially affect BAC’s earnings. Bank of America Lifts Indirect Stake in Hidropar to 5.386%
• Neutral Sentiment: Bank of America crossed a disclosure threshold in Smith & Nephew, reflecting an updated shareholding. The move is unlikely to have a meaningful direct impact on BAC’s common stock. Smith & Nephew Discloses Updated Bank of America Shareholding
• Neutral Sentiment: Bank of America’s analysts issued views on HP, Home Depot and Nvidia. These calls may generate research-related attention, but they do not materially change BAC’s own fundamentals. Bank of America Sends Warning on HP Stock
• Negative Sentiment: A market commentary warns that crowded positioning in Bank of America could make any broader-market pullback sharper. Separate analysis questions whether BAC is undervalued after its recent bond issuance, while noting recent short-term share-price weakness. These factors are weighing on sentiment despite the bank’s solid earnings profile. Bank of America's Stock Market Signal Flashes Warning Is Bank of America Undervalued?
• Negative Sentiment: Analysis of Bank of America preferred stock suggests that more attractive alternatives may exist than Series GG. While this primarily affects preferred securities, it can modestly temper sentiment toward BAC’s capital-raising instruments. Bank of America Preferreds: Better Propositions Available Than Series GG

Bank of America Price Performance

BAC stock opened at $61.73 on Friday. The firm has a 50 day moving average of $60.60 and a 200-day moving average of $54.67. The company has a market cap of $431.66 billion, a price-to-earnings ratio of 14.16, a PEG ratio of 0.99 and a beta of 1.17. Bank of America Corporation has a 12-month low of $46.12 and a 12-month high of $65.22. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $31.56 billion during the quarter, compared to analysts' expectations of $30.78 billion. During the same period last year, the company posted $0.89 EPS. The company's revenue was up 19.6% on a year-over-year basis. As a group, equities analysts expect that Bank of America Corporation will post 4.68 EPS for the current fiscal year.

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be issued a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.1%. This is a positive change from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date of this dividend is Friday, September 4th. Bank of America's payout ratio is presently 25.69%.

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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