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

Key Points

• Purkiss Capital Advisors LLC has increased its stock holdings in Bank of America by 66.7% in Q1, now owning $851,000 worth after acquiring additional shares.
• Several institutional investors have also modified their stakes in Bank of America, with 70.71% of the stock now held by institutional and hedge fund investors.
• Bank of America announced a share buyback plan to repurchase up to $40 billion in shares, reflecting management's belief that the stock is currently undervalued.

Purkiss Capital Advisors LLC raised its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 66.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,383 shares of the financial services provider's stock after purchasing an additional 8,152 shares during the period. Purkiss Capital Advisors LLC's holdings in Bank of America were worth $851,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the stock. Vega Investment Solutions acquired a new stake in shares of Bank of America in the fourth quarter valued at approximately $30,000. Marshall & Sterling Wealth Advisors Inc. acquired a new stake in shares of Bank of America in the fourth quarter valued at approximately $31,000. Spurstone Advisory Services LLC acquired a new stake in shares of Bank of America in the fourth quarter valued at approximately $34,000. Glass Jacobson Investment Advisors llc boosted its holdings in shares of Bank of America by 53.0% in the fourth quarter. Glass Jacobson Investment Advisors llc now owns 797 shares of the financial services provider's stock valued at $35,000 after acquiring an additional 276 shares during the period. Finally, Wood Tarver Financial Group LLC acquired a new stake in shares of Bank of America during the fourth quarter worth $38,000. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America Price Performance

Bank of America stock traded down $0.34 during midday trading on Thursday, reaching $47.62. 17,537,570 shares of the company were exchanged, compared to its average volume of 42,829,426. The company has a market capitalization of $358.65 billion, a price-to-earnings ratio of 13.92, a P/E/G ratio of 1.87 and a beta of 1.30. The firm's 50-day simple moving average is $46.14 and its 200-day simple moving average is $43.80. Bank of America Corporation has a 1 year low of $33.06 and a 1 year high of $49.31. 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 data on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of ($22,273.00) million during 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 firm's quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter last year, the business posted $0.83 EPS. On average, analysts anticipate that Bank of America Corporation will post 3.7 EPS 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 $0.28 dividend. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.35%. Bank of America's payout ratio is 32.75%.

Bank of America announced that its board has approved a stock repurchase plan on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on BAC shares. Citigroup increased their price target on Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a report on Thursday, June 26th. Argus reduced their target price on Bank of America from $53.00 to $47.00 and set a "buy" rating for the company in a report on Wednesday, April 16th. Truist Financial raised their target price on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Keefe, Bruyette & Woods reduced their target price on Bank of America from $55.00 to $52.00 and set an "outperform" rating for the company in a report on Wednesday, April 16th. Finally, Cowen began coverage on Bank of America in a report on Wednesday, May 14th. They issued a "buy" rating for the company. One analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price 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.