Mitsubishi UFJ Asset Management Co. Ltd. Purchases 1,324,216 Shares of Bank of America Corporation (NYSE:BAC)

Key Points

• Mitsubishi UFJ Asset Management increased its holding in Bank of America by 12.3%, now owning over 12 million shares valued at approximately $505.88 million.
• Bank of America announced a $40 billion share buyback program, allowing the company to reacquire up to 11.1% of its stock, indicating confidence in its valuation.
• The firm also increased its quarterly dividend from $0.26 to $0.28, representing a 2.5% yield and affirming its financial strength.

Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 12.3% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 12,122,798 shares of the financial services provider's stock after buying an additional 1,324,216 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.16% of Bank of America worth $505,884,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in BAC. Hayek Kallen Investment Management increased its holdings in shares of Bank of America by 2.0% in the 4th 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 lifted its holdings in shares of Bank of America by 1.4% in the 4th quarter. Continuum Advisory LLC now owns 16,707 shares of the financial services provider's stock valued at $734,000 after acquiring an additional 237 shares during the last quarter. Menard Financial Group LLC grew its position in Bank of America by 1.2% in the fourth quarter. Menard Financial Group LLC now owns 20,620 shares of the financial services provider's stock worth $906,000 after acquiring an additional 240 shares in the last quarter. Northern Financial Advisors Inc raised its position in 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 valued at $600,000 after purchasing an additional 252 shares during the period. Finally, Bank of Jackson Hole Trust lifted its stake in shares of Bank of America by 1.4% in the 1st quarter. Bank of Jackson Hole Trust now owns 18,053 shares of the financial services provider's stock valued at $832,000 after purchasing an additional 257 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Insider Buying and Selling at Bank of America

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

Bank of America Price Performance

Shares of BAC stock opened at $45.44 on Thursday. The company has a market cap of $336.53 billion, a P/E ratio of 13.29, a PEG ratio of 1.77 and a beta of 1.31. 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 stock's 50-day moving average is $46.38 and its 200 day moving average is $43.79. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $49.31.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly 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 business had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations 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 was up 4.3% compared to the same quarter last year. During the same period last year, the business earned $0.83 EPS. Research analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America announced that its Board of Directors has authorized a share buyback 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 reacquire up to 11.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its shares are undervalued.

Bank of America Increases Dividend

The firm 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 $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is 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 30.41%.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Wall Street Zen lowered shares of Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Hsbc Global Res downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. The Goldman Sachs Group increased their price objective on shares of Bank of America from $46.00 to $52.00 and gave the stock a "buy" rating in a research report on Tuesday, June 10th. Morgan Stanley boosted their target price on Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. Finally, Cfra Research increased their price target on Bank of America to $47.00 and gave the stock a "buy" rating in a report on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average 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.

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