S Bank Fund Management Ltd Invests $13.43 Million in Bank of America Corporation $BAC

Key Points

• S Bank Fund Management Ltd invested approximately $13.43 million in Bank of America Corporation, acquiring 283,892 shares of its stock during the second quarter, making it the firm's 10th largest holding.
• Bank of America reported a 10.8% increase in year-over-year revenue with earnings per share of $1.06 for the previous quarter, surpassing analyst expectations.
• The company has authorized a $40 billion stock repurchase plan, indicating that its board believes the stock is undervalued.

S Bank Fund Management Ltd acquired a new position in Bank of America Corporation (NYSE:BAC) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 283,892 shares of the financial services provider's stock, valued at approximately $13,434,000. Bank of America accounts for 2.0% of S Bank Fund Management Ltd's portfolio, making the stock its 10th biggest holding.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Nova Wealth Management Inc. grew its position in Bank of America by 75.2% during the second quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock valued at $25,000 after buying an additional 227 shares during the period. RMG Wealth Management LLC purchased a new position in Bank of America during the second quarter valued at $28,000. CGC Financial Services LLC lifted its holdings in Bank of America by 585.4% during the second quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 521 shares in the last quarter. Acima Private Wealth LLC purchased a new position in Bank of America during the second quarter valued at $33,000. Finally, Cloud Capital Management LLC purchased a new position in Bank of America during the first quarter valued at $40,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on BAC shares. Seaport Global Securities increased their price objective on shares of Bank of America from $59.00 to $66.00 and gave the company a "buy" rating in a report on Monday, October 6th. Wolfe Research increased their price objective on shares of Bank of America from $57.00 to $58.00 and gave the company an "outperform" rating in a report on Tuesday, October 7th. The Goldman Sachs Group increased their price objective on shares of Bank of America from $56.00 to $59.00 and gave the company a "buy" rating in a report on Friday, October 3rd. Oppenheimer lowered their price target on shares of Bank of America from $57.00 to $56.00 and set an "outperform" rating on the stock in a research report on Tuesday, September 23rd. Finally, Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price objective on shares of Bank of America in a research note on Friday, June 27th. Twenty-one equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Bank of America currently has a consensus rating of "Moderate Buy" and an average target price of $54.64.

Insiders Place Their Bets

In other Bank of America news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction dated Friday, August 1st. The shares were 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 in the company, valued at $10,180,656.99. The trade was a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.30% of the stock is owned by insiders.

Bank of America Price Performance

Shares of BAC stock opened at $52.26 on Thursday. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. The company has a market capitalization of $387.06 billion, a PE ratio of 15.28, a price-to-earnings-growth ratio of 1.94 and a beta of 1.33. The firm's 50-day moving average is $49.89 and its two-hundred day moving average is $45.67. Bank of America Corporation has a 12 month low of $33.06 and a 12 month high of $52.88.

Bank of America (NYSE:BAC - Get Free Report) last posted 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 for the quarter, compared to analyst estimates of $27.05 billion. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. Bank of America's revenue was up 10.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.81 EPS. Analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Friday, September 5th were issued a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 2.1%. The ex-dividend date was Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio (DPR) is presently 32.75%.

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

Bank of America 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.

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.