Quarry LP Buys Shares of 12,263 Bank of America Corporation $BAC

Key Points

• Quarry LP has made a new investment of $512,000 in Bank of America by acquiring 12,263 shares, as reported in its latest 13F filing.
• Bank of America recently announced a quarterly dividend of $0.28 per share, increasing from the previous dividend of $0.26, which represents an annual yield of 2.2%.
• The company has authorized a $40 billion share buyback program, allowing it to repurchase up to 11.1% of its stock, signaling management's belief that its shares are undervalued.

Quarry LP acquired a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 12,263 shares of the financial services provider's stock, valued at approximately $512,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vega Investment Solutions purchased a new stake in shares of Bank of America in the 4th quarter valued at about $30,000. Spurstone Advisory Services LLC purchased a new stake in shares of Bank of America in the 4th quarter valued at about $34,000. Wood Tarver Financial Group LLC purchased a new stake in shares of Bank of America in the 4th quarter valued at about $38,000. Mascagni Wealth Management Inc. purchased a new stake in shares of Bank of America in the 4th quarter valued at about $40,000. Finally, Cloud Capital Management LLC purchased a new stake in shares of Bank of America in the 1st quarter valued at about $40,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on BAC. Hsbc Global Res downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Wall Street Zen downgraded Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Cowen began coverage on Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating for the company. HSBC downgraded Bank of America from a "buy" rating to a "hold" rating and upped their price objective for the company from $47.00 to $51.00 in a research note on Monday, July 7th. Finally, Truist Financial upped their price objective on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Sixteen analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and an average target price of $50.39.

Bank of America Price Performance

Shares of BAC traded down $0.38 on Wednesday, reaching $50.05. The stock had a trading volume of 34,105,190 shares, compared to its average volume of 41,949,840. The firm has a market capitalization of $370.68 billion, a PE ratio of 14.63, a PEG ratio of 1.97 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. The firm has a 50-day moving average of $47.77 and a 200 day moving average of $44.00. Bank of America Corporation has a twelve month low of $33.06 and a twelve month high of $50.92.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The business 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 was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.83 EPS. Sell-side analysts expect that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued a $0.28 dividend. The ex-dividend date is Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.2%. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is currently 32.75%.

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

Insider Buying and Selling at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the stock in a transaction 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 sale, the insider owned 223,407 shares in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.30% of the stock is currently owned by corporate insiders.

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.