Sit Investment Associates Inc. Purchases 52,495 Shares of Bank of America Corporation (NYSE:BAC)

Key Points

• Sit Investment Associates Inc. increased its holdings in Bank of America by 23.0%, acquiring an additional 52,495 shares during the first quarter, bringing their total to 280,810 shares worth approximately $11.7 million.
• Bank of America declared a quarterly dividend of $0.28 per share, up from the previous $0.26, indicating a commitment to returning value to shareholders.
• Analysts currently have a consensus rating of "Moderate Buy" for Bank of America, with a target price of $50.13, while the stock has a PE ratio of 13.81.

Sit Investment Associates Inc. boosted its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 23.0% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 280,810 shares of the financial services provider's stock after buying an additional 52,495 shares during the quarter. Sit Investment Associates Inc.'s holdings in Bank of America were worth $11,718,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Hayek Kallen Investment Management lifted its holdings in Bank of America by 2.0% during the 4th quarter. Hayek Kallen Investment Management now owns 12,022 shares of the financial services provider's stock worth $528,000 after buying an additional 233 shares during the period. Continuum Advisory LLC lifted its holdings in Bank of America by 1.4% during the 4th quarter. Continuum Advisory LLC now owns 16,707 shares of the financial services provider's stock worth $734,000 after buying an additional 237 shares during the period. Menard Financial Group LLC lifted its stake in shares of Bank of America by 1.2% in the 4th quarter. Menard Financial Group LLC now owns 20,620 shares of the financial services provider's stock valued at $906,000 after purchasing an additional 240 shares during the period. Maia Wealth LLC lifted its stake in shares of Bank of America by 1.4% in the 1st quarter. Maia Wealth LLC now owns 17,334 shares of the financial services provider's stock valued at $723,000 after purchasing an additional 240 shares during the period. Finally, Northern Financial Advisors Inc lifted its stake in shares of Bank of America by 1.8% in the 1st quarter. Northern Financial Advisors Inc now owns 14,383 shares of the financial services provider's stock valued at $600,000 after purchasing an additional 252 shares during the period. 70.71% of the stock is owned by institutional investors and hedge funds.

Bank of America Stock Performance

Shares of NYSE:BAC traded down $0.80 during trading on Friday, hitting $46.91. 26,258,666 shares of the company were exchanged, compared to its average volume of 33,527,488. The company has a market cap of $347.46 billion, a PE ratio of 13.72, a P/E/G ratio of 1.85 and a beta of 1.31. The stock has a 50 day moving average of $46.69 and a 200 day moving average of $43.79. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $49.31. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last posted 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. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. The firm had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the prior year, the business posted $0.83 earnings per share. The business's quarterly revenue was up 4.3% on a year-over-year basis. As a group, equities research analysts predict that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America announced that its Board of Directors has initiated a share buyback program on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its stock is undervalued.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is 32.75%.

Insider Activity

In related 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 value 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 trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.30% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Baird R W downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 27th. The Goldman Sachs Group boosted their price objective on Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a research note on Tuesday, June 10th. Wall Street Zen downgraded Bank of America from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. TD Cowen started coverage on Bank of America in a research note on Thursday, May 15th. They set a "buy" rating and a $53.00 price target on the stock. Finally, Robert W. Baird reaffirmed a "neutral" rating and set a $52.00 price target on shares of Bank of America in a research note on Friday, June 27th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $50.13.

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.