Rockland Trust Co. Increases Holdings in Bank of America Corporation $BAC

Key Points

• Rockland Trust increased its Bank of America position by 425.4% in the third quarter, bringing its holdings to 434,499 shares worth approximately $23.65 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America reported quarterly earnings of $1.21 per share, exceeding estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion.
• The company raised its quarterly dividend from $0.28 to $0.32 per share, representing an annualized yield of about 2.4%. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $63.78.

Rockland Trust Co. grew its position in Bank of America Corporation (NYSE:BAC - Free Report) by 425.4% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 434,499 shares of the financial services provider's stock after buying an additional 351,798 shares during the period. Bank of America accounts for approximately 0.9% of Rockland Trust Co.'s investment portfolio, making the stock its 29th largest holding. Rockland Trust Co.'s holdings in Bank of America were worth $23,650,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in BAC. Deutsche Bank AG boosted its holdings in Bank of America by 5.9% in the fourth quarter. Deutsche Bank AG now owns 47,172,503 shares of the financial services provider's stock valued at $2,594,488,000 after acquiring an additional 2,611,776 shares during the last quarter. Legal & General Group Plc bought a new stake in Bank of America during the 2nd quarter worth about $2,571,060,000. Capital International Investors acquired a new position in Bank of America during the 4th quarter valued at about $2,357,461,000. Amundi lifted its position in Bank of America by 12.5% during the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock valued at $2,066,274,000 after purchasing an additional 4,721,969 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Bank of America in the 2nd quarter valued at about $2,313,953,000. Institutional investors own 70.71% of the company's stock.

Bank of America Trading Up 0.8%

NYSE:BAC traded up $0.42 during trading hours on Monday, hitting $54.17. The stock had a trading volume of 15,688,991 shares, compared to its average volume of 37,135,414. The business's 50 day moving average is $60.89 and its 200-day moving average is $56.35. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The company has a market cap of $378.77 billion, a price-to-earnings ratio of 12.43, a P/E/G ratio of 0.86 and a beta of 1.21. Bank of America Corporation has a one year low of $46.12 and a one year high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The firm had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. During the same period in the previous year, the company posted $0.89 earnings per share. The company's revenue for the quarter was up 19.6% on a year-over-year basis. Sell-side analysts anticipate that Bank of America Corporation will post 4.63 EPS for the current fiscal year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were issued a dividend of $0.32 per share. This is a boost from Bank of America's previous quarterly dividend of $0.28. The ex-dividend date was Friday, September 4th. This represents a $1.28 dividend on an annualized basis and a yield of 2.4%. Bank of America's dividend payout ratio is currently 29.36%.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on BAC shares. Jefferies Financial Group cut their price objective on shares of Bank of America from $75.00 to $70.00 and set a "buy" rating on the stock in a report on Thursday, September 24th. Argus set a $70.00 target price on shares of Bank of America in a report on Wednesday, July 15th. Truist Financial cut their price target on Bank of America from $65.00 to $62.00 and set a "buy" rating on the stock in a research note on Thursday. Royal Bank Of Canada raised their price target on Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Finally, HSBC started coverage on Bank of America in a research note on Monday, September 28th. They set a "buy" rating and a $65.00 price objective for the company. Twenty analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $63.78.

Key Bank of America News

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

• Positive Sentiment: BAC was identified as one of five oversold market areas that could rebound if market breadth improves and investors rotate beyond large-cap technology stocks. This supports the view that the shares have recovery potential after recent weakness. 5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves
• Positive Sentiment: Bank of America’s dividend profile remains a focus for income-oriented investors. A comparison with U.S. Bancorp highlights BAC’s dividend increase and the potential appeal of its scale and earnings capacity, although the stock’s income advantages depend partly on the interest-rate outlook. BAC vs. USB: Which Bank Stock Offers the Superior Dividend Income for Retirees?
• Positive Sentiment: Bank of America strategists expect two-year Treasury yields to rise further because of economic strength and possible additional Federal Reserve tightening. Higher rates can support banks’ loan yields and net interest income, potentially benefiting BAC, though they also increase broader market and credit risks. Two-Year Treasury Yields Could Rise Further Due to Robust Economy, BofA Says
• Neutral Sentiment: BAC disclosed higher indirect holdings in several Turkish companies through Merrill Lynch subsidiaries. The announcements appear related to client, custody, or trading activity and do not indicate a material change to Bank of America’s core investment outlook. Bank of America Lifts Indirect Stake in A1 Yenilenebilir Enerji to 3%
• Negative Sentiment: JPMorgan Chase reduced its price target for Bank of America, creating a valuation overhang and tempering the otherwise favorable rate and rotation narrative. Bank of America Stock Price Target Cut by JPMorgan Chase

Bank of America Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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