Pzena Investment Management LLC Takes Position in Bank of America Corporation $BAC

Key Points

• Pzena Investment Management bought 6.31 million Bank of America shares in the second quarter, valued at approximately $359.6 million. The position represents about 1.1% of Pzena’s portfolio and 0.09% of BAC’s outstanding shares.
• Bank of America reported quarterly EPS of $1.21, exceeding estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion. The bank also raised its quarterly dividend from $0.28 to $0.32 per share, implying a 2.1% yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $64.08. However, commentary flags crowded positioning, recent share-price weakness and concerns about the attractiveness of certain preferred securities.

Pzena Investment Management LLC purchased a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 6,310,363 shares of the financial services provider's stock, valued at approximately $359,564,000. Bank of America makes up about 1.1% of Pzena Investment Management LLC's holdings, making the stock its 26th largest position. Pzena Investment Management LLC owned about 0.09% of Bank of America as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also modified their holdings of BAC. Abound Financial LLC bought a new position in shares of Bank of America in the fourth quarter worth about $26,000. Wiser Advisor Group LLC acquired a new stake in shares of Bank of America in the 3rd quarter valued at approximately $27,000. CrossGen Wealth LLC bought a new stake in shares of Bank of America during the 4th quarter valued at approximately $30,000. Joseph Group Capital Management bought a new stake in shares of Bank of America during the 4th quarter valued at approximately $32,000. Finally, HFM Investment Advisors LLC increased its position in Bank of America by 566.0% during the 4th quarter. HFM Investment Advisors LLC now owns 626 shares of the financial services provider's stock worth $34,000 after purchasing an additional 532 shares in the last quarter. 70.71% of the stock is currently owned by institutional investors.

Key Headlines Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America’s active participation in the August bond market demonstrates continued access to wholesale funding and allows it to extend maturities through senior unsecured offerings. Its latest quarterly results also showed strong earnings and revenue growth, providing a fundamental counterweight to near-term concerns. Bank of America's Stock Market Signal Flashes Warning
• Neutral Sentiment: Bank of America increased its indirect stake in Turkish industrial technology company Hidropar to 5.386%. The disclosure indicates portfolio or client-related investment activity, but it is not expected to materially affect BAC’s earnings. Bank of America Lifts Indirect Stake in Hidropar to 5.386%
• Neutral Sentiment: Bank of America crossed a disclosure threshold in Smith & Nephew, reflecting an updated shareholding. The move is unlikely to have a meaningful direct impact on BAC’s common stock. Smith & Nephew Discloses Updated Bank of America Shareholding
• Neutral Sentiment: Bank of America’s analysts issued views on HP, Home Depot and Nvidia. These calls may generate research-related attention, but they do not materially change BAC’s own fundamentals. Bank of America Sends Warning on HP Stock
• Negative Sentiment: A market commentary warns that crowded positioning in Bank of America could make any broader-market pullback sharper. Separate analysis questions whether BAC is undervalued after its recent bond issuance, while noting recent short-term share-price weakness. These factors are weighing on sentiment despite the bank’s solid earnings profile. Bank of America's Stock Market Signal Flashes Warning Is Bank of America Undervalued?
• Negative Sentiment: Analysis of Bank of America preferred stock suggests that more attractive alternatives may exist than Series GG. While this primarily affects preferred securities, it can modestly temper sentiment toward BAC’s capital-raising instruments. Bank of America Preferreds: Better Propositions Available Than Series GG

Analysts Set New Price Targets

Several brokerages recently commented on BAC. UBS Group increased their price objective on shares of Bank of America from $68.00 to $70.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Robert W. Baird upped their price target on shares of Bank of America from $58.00 to $62.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th. Keefe, Bruyette & Woods increased their price target on Bank of America from $67.00 to $70.00 and gave the company an "outperform" rating in a research note on Wednesday, July 15th. Evercore set a $63.00 price target on Bank of America and gave the company an "outperform" rating in a research note on Monday, July 6th. Finally, Oppenheimer downgraded Bank of America from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Twenty-one investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $64.08.

Bank of America Stock Performance

Shares of Bank of America stock opened at $61.73 on Friday. The stock has a market cap of $431.66 billion, a price-to-earnings ratio of 14.16, a P/E/G ratio of 0.99 and a beta of 1.17. Bank of America Corporation has a twelve month low of $46.12 and a twelve month high of $65.22. The company's fifty day moving average is $60.60 and its 200 day moving average is $54.67. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.08. The business had revenue of $31.56 billion during the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.Bank of America's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same period last year, the company earned $0.89 EPS. Sell-side analysts forecast that Bank of America Corporation will post 4.68 EPS for the current year.

Bank of America Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Friday, September 4th. This is a positive change from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.1%. Bank of America's payout ratio is currently 25.69%.

Bank of America Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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