MKP Capital Management L.L.C. Purchases Shares of 1,100,000 Bank of America Corporation $BAC

Key Points

• MKP Capital Management opened a new position in Bank of America, buying 1.1 million shares worth about $60.5 million. The stake makes BAC its 7th-largest holding and represents about 2.2% of the portfolio.
• Bank of America has seen continued institutional buying, with several hedge funds and asset managers increasing their positions. Overall, about 70.71% of the stock is owned by institutional investors.
• The company has a generally positive backdrop: it beat last quarter’s EPS and revenue estimates, pays a $0.28 quarterly dividend yielding 2.2%, and analysts currently rate the stock Moderate Buy with an average target price of $61.06.

MKP Capital Management L.L.C. acquired a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 1,100,000 shares of the financial services provider's stock, valued at approximately $60,500,000. Bank of America accounts for about 2.2% of MKP Capital Management L.L.C.'s portfolio, making the stock its 7th largest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Handelsbanken Fonder AB increased its position in shares of Bank of America by 53.0% during the 4th quarter. Handelsbanken Fonder AB now owns 4,629,553 shares of the financial services provider's stock worth $254,625,000 after purchasing an additional 1,603,080 shares in the last quarter. Meridian Wealth Management LLC increased its position in shares of Bank of America by 54.6% during the 3rd quarter. Meridian Wealth Management LLC now owns 58,308 shares of the financial services provider's stock worth $3,008,000 after purchasing an additional 20,591 shares in the last quarter. AdvisorShares Investments LLC acquired a new stake in shares of Bank of America during the 3rd quarter worth about $482,000. Mufg Securities Americas Inc. increased its position in shares of Bank of America by 26.6% during the 3rd quarter. Mufg Securities Americas Inc. now owns 198,918 shares of the financial services provider's stock worth $10,262,000 after purchasing an additional 41,809 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. AG increased its position in shares of Bank of America by 11.2% during the 3rd quarter. B. Metzler seel. Sohn & Co. AG now owns 677,919 shares of the financial services provider's stock worth $34,974,000 after purchasing an additional 68,093 shares in the last quarter. 70.71% of the stock is owned by institutional investors.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Analysts and market commentary continue to highlight Bank of America’s deposit franchise as a key structural advantage, supporting stable funding and long-term profitability. Bank of America's Deposit Franchise Is the Hidden Asset Investors Keep Missing
• Positive Sentiment: Reuters-reported expectations for a 15% jump in second-quarter trading revenue suggest stronger near-term income, helped by market volatility and higher client activity. Bank of America (BAC) Expects Q2 Trading Revenue to Jump 15%, Reuters Reports
• Positive Sentiment: CEO Brian Moynihan’s recent comments that the company feels good about the near-term outlook and has raised its full-year net interest income outlook also added to sentiment. Bank of America's Deposit Franchise Is the Hidden Asset Investors Keep Missing
• Neutral Sentiment: Bank of America Securities also hosted investor forums and conference coverage around hedge fund and quant-market activity, which reflects the firm’s strong capital-markets positioning but is not a direct earnings catalyst for BAC shares. BofA Securities Asia Forum Gathers Global Investors Amid Surge in Hedge Funds Allocations

Bank of America Stock Down 0.2%

Shares of NYSE:BAC opened at $51.48 on Tuesday. Bank of America Corporation has a one year low of $43.36 and a one year high of $57.55. The company has a 50 day moving average of $51.20 and a 200-day moving average of $52.30. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market cap of $365.36 billion, a price-to-earnings ratio of 12.74, a P/E/G ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $1.11 EPS for the quarter, topping the consensus estimate of $1.00 by $0.11. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The company had revenue of $30.27 billion during the quarter, compared to analysts' expectations of $29.72 billion. During the same quarter in the previous year, the company earned $0.90 EPS. Bank of America's revenue was up 10.7% on a year-over-year basis. On average, sell-side analysts forecast that Bank of America Corporation will post 4.45 earnings per share for the current year.

Bank of America Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be given a dividend of $0.28 per share. The ex-dividend date is Friday, June 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.2%. Bank of America's payout ratio is currently 27.72%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on BAC shares. The Goldman Sachs Group increased their target price on shares of Bank of America from $58.00 to $63.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Daiwa Securities Group increased their target price on shares of Bank of America from $58.00 to $61.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. Autonomous Res dropped their target price on shares of Bank of America from $62.00 to $54.00 and set a "neutral" rating for the company in a research report on Monday, April 6th. Keefe, Bruyette & Woods increased their target price on shares of Bank of America from $63.00 to $64.00 and gave the stock an "outperform" rating in a research report on Thursday, April 16th. Finally, Wall Street Zen upgraded shares of Bank of America from a "sell" rating to a "hold" rating in a research report on Saturday, February 14th. Twenty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $61.06.

Insider Buying and Selling at Bank of America

In other news, insider Thomas M. Scrivener sold 50,000 shares of Bank of America stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $49.82, for a total transaction of $2,491,000.00. Following the completion of the sale, the insider owned 227,973 shares in the company, valued at $11,357,614.86. The trade was a 17.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Geoffrey S. Greener sold 126,756 shares of Bank of America stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the sale, the insider owned 1,373,397 shares of the company's stock, valued at approximately $72,803,774.97. This represents a 8.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 354,588 shares of company stock worth $17,814,296 in the last 90 days. Corporate insiders own 0.27% of the company's stock.

Bank of America Company 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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