Old West Investment Management LLC Boosts Stake in Bank of America Corporation $BAC

Key Points

• Old West Investment Management LLC increased its stake in Bank of America Corporation (NYSE:BAC) by 232.9%, now owning 71,334 shares valued at approximately $2.98 million.
• Bank of America recently declared a quarterly dividend increase from $0.26 to $0.28 per share, with a current yield of 2.3%.
• Despite fluctuations in ratings from analysts, the stock holds a consensus rating of "Moderate Buy" with an average target price of $50.13.

Old West Investment Management LLC grew its stake in Bank of America Corporation (NYSE:BAC) by 232.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 71,334 shares of the financial services provider's stock after buying an additional 49,908 shares during the period. Bank of America accounts for 1.1% of Old West Investment Management LLC's holdings, making the stock its 27th biggest position. Old West Investment Management LLC's holdings in Bank of America were worth $2,977,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Vega Investment Solutions purchased a new position in shares of Bank of America during the fourth quarter worth $30,000. Marshall & Sterling Wealth Advisors Inc. purchased a new position in shares of Bank of America during the fourth quarter worth $31,000. Spurstone Advisory Services LLC purchased a new position in shares of Bank of America during the fourth quarter worth $34,000. Wood Tarver Financial Group LLC purchased a new position in shares of Bank of America during the fourth quarter worth $38,000. Finally, Mascagni Wealth Management Inc. purchased a new position in shares of Bank of America during the fourth quarter worth $40,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

Analyst Upgrades and Downgrades

BAC has been the subject of several recent research reports. Wall Street Zen cut shares of Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Hsbc Global Res cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Robert W. Baird reaffirmed a "neutral" rating and issued a $52.00 price objective on shares of Bank of America in a report on Friday, June 27th. Phillip Securities cut shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Finally, Morgan Stanley lifted their price objective on shares of Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a report on Monday, June 23rd. Seventeen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $50.13.

Insiders Place Their Bets

In related news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction dated Friday, August 1st. The shares were 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 approximately $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 SEC, which can be accessed through the SEC website. Insiders own 0.30% of the company's stock.

Bank of America Stock Up 2.5%

Shares of NYSE BAC opened at $49.4850 on Monday. The company's 50-day simple moving average is $47.06 and its 200-day simple moving average is $43.81. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $49.66. The firm has a market cap of $366.53 billion, a price-to-earnings ratio of 14.47, a price-to-earnings-growth ratio of 1.92 and a beta of 1.31. 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 (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.03. The business had revenue of ($22,273.00) million for the quarter, compared to analyst estimates 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 for the quarter was up 4.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.83 earnings per share. Equities analysts predict that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. The ex-dividend date is Friday, September 5th. This is a boost from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a yield of 2.3%. Bank of America's dividend payout ratio (DPR) is presently 32.75%.

Bank of America declared that its board has authorized a share repurchase 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 repurchase up to 11.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is 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.

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