Rahlfs Capital LLC Cuts Stake in Bank of America Corporation $BAC

Key Points

• Rahlfs Capital LLC reduced its stake in Bank of America by 43.3%, resulting in ownership of 8,300 shares worth approximately $346,000.
• Bank of America announced a $40 billion share buyback plan, aiming to repurchase up to 11.1% of its outstanding shares, indicating confidence in its stock value.
• Bank of America also increased its quarterly dividend to $0.28 per share, up from $0.26, reflecting a 2.3% yield and a payout ratio of 30.41%.

Rahlfs Capital LLC trimmed its position in shares of Bank of America Corporation (NYSE:BAC) by 43.3% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 8,300 shares of the financial services provider's stock after selling 6,350 shares during the quarter. Rahlfs Capital LLC's holdings in Bank of America were worth $346,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Vega Investment Solutions purchased a new stake in Bank of America during the 4th quarter valued at about $30,000. Marshall & Sterling Wealth Advisors Inc. purchased a new stake in Bank of America during the 4th quarter valued at about $31,000. Spurstone Advisory Services LLC purchased a new stake in Bank of America during the 4th quarter valued at about $34,000. Wood Tarver Financial Group LLC purchased a new stake in Bank of America during the 4th quarter valued at about $38,000. Finally, Mascagni Wealth Management Inc. purchased a new stake in Bank of America during the 4th quarter valued at about $40,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Bank of America Trading Up 2.5%

Shares of NYSE:BAC opened at $49.4850 on Friday. The stock has a market capitalization of $366.53 billion, a price-to-earnings ratio of 14.47, a PEG ratio of 1.87 and a beta of 1.31. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The stock's 50-day simple moving average is $47.06 and its two-hundred day simple moving average is $43.86. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $49.66.

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, topping the consensus estimate 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 business's revenue for the quarter was up 4.3% on a year-over-year basis. During the same period last year, the firm posted $0.83 earnings per share. Analysts expect that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America declared that its board has authorized a share buyback 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 purchase up to 11.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be given a $0.28 dividend. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 2.3%. Bank of America's payout ratio is 30.41%.

Analyst Upgrades and Downgrades

Several analysts recently commented on BAC shares. Citigroup increased their price objective on shares of Bank of America from $50.00 to $54.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. Phillip Securities downgraded Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Cowen assumed coverage on Bank of America in a report on Wednesday, May 14th. They issued a "buy" rating for the company. Morgan Stanley lifted their price objective on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. Finally, Hsbc Global Res downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Seventeen analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $50.13.

About Bank of America

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.

Want to see what other hedge funds are holding BAC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Bank of America Corporation (NYSE:BAC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.