RedJay Asset Management Inc. Purchases 20,000 Shares of Bank of America Corporation $BAC

Key Points

• RedJay Asset Management Inc. increased its stake in Bank of America by 20%, now owning 120,000 shares, which represents about 1.3% of its total portfolio, valued at $5.68 million.
• Bank of America reported $1.06 earnings per share, surpassing estimates of $0.93, alongside a revenue of $28.09 billion, which is 10.8% higher than last year.
• The company has authorized a $40 billion stock buyback plan, indicating the board's belief that its stocks are undervalued.

RedJay Asset Management Inc. raised its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 20.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 120,000 shares of the financial services provider's stock after purchasing an additional 20,000 shares during the period. Bank of America accounts for approximately 1.3% of RedJay Asset Management Inc.'s portfolio, making the stock its 11th largest holding. RedJay Asset Management Inc.'s holdings in Bank of America were worth $5,678,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Deutsche Bank AG lifted its position in shares of Bank of America by 45.1% during the first quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock worth $2,007,718,000 after acquiring an additional 14,960,086 shares in the last quarter. Unisphere Establishment lifted its position in shares of Bank of America by 1,642.5% during the first quarter. Unisphere Establishment now owns 4,195,000 shares of the financial services provider's stock worth $175,057,000 after acquiring an additional 3,954,250 shares in the last quarter. Kingstone Capital Partners Texas LLC purchased a new stake in shares of Bank of America in the second quarter worth $164,623,000. Maverick Capital Ltd. purchased a new stake in shares of Bank of America in the first quarter worth $152,098,000. Finally, AMF Tjanstepension AB raised its position in shares of Bank of America by 62.9% in the second quarter. AMF Tjanstepension AB now owns 8,904,561 shares of the financial services provider's stock worth $421,564,000 after buying an additional 3,438,876 shares in the last quarter. 70.71% of the stock is owned by institutional investors.

Bank of America Trading Up 1.3%

BAC stock traded up $0.68 during trading on Friday, hitting $52.44. 38,915,055 shares of the company traded hands, compared to its average volume of 31,739,722. The firm has a market capitalization of $388.38 billion, a PE ratio of 14.29, a P/E/G ratio of 1.96 and a beta of 1.33. Bank of America Corporation has a 1 year low of $33.06 and a 1 year high of $52.88. The company has a 50-day moving average of $50.58 and a 200-day moving average of $46.31. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.79 and a current ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, October 15th. The financial services provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.13. The company had revenue of $28.09 billion during the quarter, compared to analysts' expectations of $27.05 billion. Bank of America had a return on equity of 10.76% and a net margin of 15.70%.Bank of America's quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.81 EPS. Analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 26th. Investors of record on Friday, December 5th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Friday, December 5th. This represents a $1.12 annualized dividend and a dividend yield of 2.1%. Bank of America's dividend payout ratio (DPR) is presently 30.52%.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on BAC shares. Dbs Bank upgraded Bank of America to a "moderate buy" rating in a research report on Wednesday. Keefe, Bruyette & Woods reiterated an "outperform" rating and issued a $58.00 price objective (up previously from $57.00) on shares of Bank of America in a research report on Thursday, October 16th. Hsbc Global Res downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Royal Bank Of Canada raised their price target on Bank of America from $53.00 to $56.00 and gave the company an "outperform" rating in a research report on Wednesday, October 1st. Finally, Daiwa Capital Markets upped their price objective on Bank of America from $54.00 to $58.00 and gave the stock an "outperform" rating in a report on Wednesday, October 8th. Twenty-three analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $57.23.

Insider Activity

In related 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 sale, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.30% of the stock is owned by 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.

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