PointState Capital LP Has $105.21 Million Position in Bank of America Corporation $BAC

Key Points

• PointState Capital LP has significantly reduced its stake in Bank of America, lowering its position by 41.1% to approximately $105.21 million, making Bank of America the 18th largest position in their portfolio.
• Bank of America recently announced a dividend increase to $0.28 per share, reflecting a positive change from its previous dividend of $0.26, with a scheduled payout on September 26th.
• The company also initiated a $40 billion share repurchase program, enabling it to buyback up to 11.1% of its outstanding shares, suggesting that the board believes the stock is undervalued.

PointState Capital LP lowered its position in Bank of America Corporation (NYSE:BAC - Free Report) by 41.1% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,521,116 shares of the financial services provider's stock after selling 1,757,237 shares during the quarter. Bank of America accounts for approximately 1.5% of PointState Capital LP's investment portfolio, making the stock its 18th largest position. PointState Capital LP's holdings in Bank of America were worth $105,206,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in BAC. Brighton Jones LLC increased its stake in shares of Bank of America by 30.0% in the fourth quarter. Brighton Jones LLC now owns 108,872 shares of the financial services provider's stock valued at $4,785,000 after buying an additional 25,143 shares during the period. Bank Pictet & Cie Europe AG increased its stake in shares of Bank of America by 35.7% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 860,005 shares of the financial services provider's stock valued at $37,797,000 after buying an additional 226,246 shares during the period. Algert Global LLC increased its stake in shares of Bank of America by 37.3% in the fourth quarter. Algert Global LLC now owns 20,957 shares of the financial services provider's stock valued at $921,000 after buying an additional 5,691 shares during the period. Crestline Management LP acquired a new position in shares of Bank of America in the fourth quarter valued at approximately $1,162,000. Finally, Driehaus Capital Management LLC increased its position in Bank of America by 22.1% during the 4th quarter. Driehaus Capital Management LLC now owns 25,614 shares of the financial services provider's stock valued at $1,126,000 after purchasing an additional 4,630 shares during the period. Institutional investors and hedge funds own 70.71% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Hsbc Global Res downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Phillip Securities downgraded shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. The Goldman Sachs Group increased their target price on shares of Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a research report on Tuesday, June 10th. TD Cowen assumed coverage on shares of Bank of America in a research report on Thursday, May 15th. They set a "buy" rating and a $53.00 target price for the company. Finally, Wall Street Zen downgraded shares of Bank of America from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Sixteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Bank of America currently has a consensus rating of "Moderate Buy" and a consensus price target of $50.39.

Insider Activity

In other Bank of America news, insider James P. Demare sold 148,391 shares of the stock in a transaction that occurred 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 approximately $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.30% of the company's stock.

Bank of America Price Performance

Bank of America stock opened at $49.69 on Friday. The stock has a market capitalization of $368.07 billion, a price-to-earnings ratio of 14.53, a PEG ratio of 1.96 and a beta of 1.34. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $50.92. The stock's 50 day moving average price is $47.95 and its two-hundred day moving average price is $44.09. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of ($22,273.00) million for the quarter, compared to analysts' expectations of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The company's revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.83 EPS. On average, equities analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio (DPR) is currently 30.41%.

Bank of America declared that its board has initiated 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 generally a sign that the company's board 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.

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