Providence Capital Advisors LLC Boosts Holdings in Bank of America Corporation (NYSE:BAC)

Key Points

• Providence Capital Advisors LLC increased its holdings in Bank of America Corporation by 2.1% during the 1st quarter, owning 259,938 shares valued at approximately $10.8 million.
• Bank of America recently announced a $40 billion stock buyback program, allowing the company to repurchase up to 11.1% of its outstanding shares, indicating confidence from the board that its stock is undervalued.
• The company also declared an increase in its quarterly dividend from $0.26 to $0.28 per share, signaling a strong cash position, with a dividend yield of 2.3%.

Providence Capital Advisors LLC boosted its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 2.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 259,938 shares of the financial services provider's stock after acquiring an additional 5,296 shares during the quarter. Bank of America accounts for approximately 2.3% of Providence Capital Advisors LLC's investment portfolio, making the stock its 4th biggest holding. Providence Capital Advisors LLC's holdings in Bank of America were worth $10,847,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in BAC. Vega Investment Solutions bought a new position in shares of Bank of America in the fourth quarter valued at about $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new position in shares of Bank of America in the fourth quarter valued at about $31,000. Spurstone Advisory Services LLC bought a new position in shares of Bank of America in the fourth quarter valued at about $34,000. Wood Tarver Financial Group LLC bought a new position in shares of Bank of America in the fourth quarter valued at about $38,000. Finally, Mascagni Wealth Management Inc. bought a new position in shares of Bank of America in the fourth quarter valued at about $40,000. 70.71% of the stock is owned by institutional investors.

Bank of America Trading Up 0.9%

BAC opened at $47.68 on Friday. The company's 50 day moving average is $46.65 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. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The company has a market cap of $353.13 billion, a P/E ratio of 13.94, a PEG ratio of 1.83 and a beta of 1.31.

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 for the quarter, beating analysts' consensus estimates 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 company had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same period last year, the company posted $0.83 EPS. The firm's quarterly revenue was up 4.3% compared to the same quarter last year. Equities 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 has approved a stock 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 purchase up to 11.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Bank of America Increases Dividend

The business 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 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 an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is 30.41%.

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 that occurred on 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 sale, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

BAC has been the topic of a number of recent research reports. The Goldman Sachs Group raised their price target 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. Citigroup raised their price target on shares of Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price target on shares of Bank of America in a research report on Friday, June 27th. Phillip Securities lowered shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Finally, TD Cowen initiated coverage on shares of Bank of America in a research report on Thursday, May 15th. They set a "buy" rating and a $53.00 price target on the stock. One research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have issued a buy rating to the company. Based on data from MarketBeat.com, Bank of America presently has an average rating of "Moderate Buy" and a consensus price target of $50.13.

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.

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