Procyon Advisors LLC Trims Holdings in Bank of America Corporation $BAC

Key Points

• Procyon Advisors LLC significantly reduced its holdings in Bank of America by 79.5% in the second quarter, now owning 15,757 shares valued at $746,000.
• Bank of America announced a new stock repurchase plan allowing for the buyback of $40 billion in shares, indicating management's belief that the stock is undervalued.
• The bank also increased its quarterly dividend from $0.26 to $0.28 per share, reflecting a positive change in its financial distributions to shareholders.

Procyon Advisors LLC lowered its position in Bank of America Corporation (NYSE:BAC - Free Report) by 79.5% in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 15,757 shares of the financial services provider's stock after selling 61,283 shares during the period. Procyon Advisors LLC's holdings in Bank of America were worth $746,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Deutsche Bank AG lifted its stake in Bank of America by 45.1% in the 1st quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock worth $2,007,718,000 after purchasing an additional 14,960,086 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in Bank of America in the 4th quarter worth $217,979,000. GAMMA Investing LLC lifted its stake in Bank of America by 4,414.4% in the 1st quarter. GAMMA Investing LLC now owns 4,654,022 shares of the financial services provider's stock worth $194,212,000 after purchasing an additional 4,550,930 shares in the last quarter. Unisphere Establishment lifted its stake in Bank of America by 1,642.5% in the 1st quarter. Unisphere Establishment now owns 4,195,000 shares of the financial services provider's stock worth $175,057,000 after purchasing an additional 3,954,250 shares in the last quarter. Finally, Maverick Capital Ltd. purchased a new stake in Bank of America in the 1st quarter worth $152,098,000. Institutional investors own 70.71% of the company's stock.

Bank of America Price Performance

Shares of NYSE BAC traded up $0.14 during trading on Friday, hitting $52.27. The company had a trading volume of 98,925,969 shares, compared to its average volume of 35,208,044. The stock has a fifty day simple moving average of $48.55 and a two-hundred day simple moving average of $44.53. Bank of America Corporation has a fifty-two week low of $33.06 and a fifty-two week high of $52.66. The firm has a market capitalization of $387.16 billion, a price-to-earnings ratio of 15.28, a price-to-earnings-growth ratio of 2.03 and a beta of 1.34. 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. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The business had revenue of ($22,273.00) million for the quarter, compared to analyst estimates of $26.79 billion. During the same quarter last year, the business earned $0.83 earnings per share. The company's revenue for the quarter was up 4.3% compared to the same quarter last year. On average, research analysts expect 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. Stockholders of record on Friday, September 5th will be paid a $0.28 dividend. This is an increase from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, September 5th. Bank of America's payout ratio is 32.75%.

Bank of America declared that its board has authorized a stock repurchase plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to purchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several analysts have recently issued reports on BAC shares. Baird R W cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 27th. Citigroup upped their target price on shares of Bank of America from $54.00 to $58.00 and gave the company a "buy" rating in a research report on Friday. Oppenheimer upped their target price on shares of Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a research report on Wednesday, July 30th. Truist Financial upped their target price on shares of Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 9th. Finally, 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. Sixteen research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $50.82.

Insider Buying and Selling at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the transaction, the insider directly owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 0.30% of the company's stock.

Bank of America Company 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.