Smartleaf Asset Management LLC Purchases 8,351 Shares of Bank of America Corporation $BAC

Key Points

• Smartleaf Asset Management LLC increased its stake in Bank of America by 12.6%, owning 74,556 shares valued at approximately $3,075,000 at the end of the first quarter.
• Bank of America announced a $40 billion stock buyback plan and increased its quarterly dividend from $0.26 to $0.28 per share, reflecting confidence in its share value.
• Analysts have mixed views on Bank of America, with some downgrading its rating, while others maintain a "Moderate Buy" status and set an average price target of $50.13 per share.

Smartleaf Asset Management LLC boosted its stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 12.6% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 74,556 shares of the financial services provider's stock after purchasing an additional 8,351 shares during the quarter. Smartleaf Asset Management LLC's holdings in Bank of America were worth $3,075,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Vega Investment Solutions bought a new stake in Bank of America during the fourth quarter worth approximately $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in Bank of America during the fourth quarter worth approximately $31,000. Spurstone Advisory Services LLC bought a new stake in Bank of America during the fourth quarter worth approximately $34,000. Wood Tarver Financial Group LLC bought a new stake in Bank of America during the fourth quarter worth approximately $38,000. Finally, Mascagni Wealth Management Inc. bought a new stake in Bank of America during the fourth quarter worth approximately $40,000. Institutional investors own 70.71% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on BAC. The Goldman Sachs Group raised their target price on Bank of America from $46.00 to $52.00 and gave the company a "buy" rating in a report on Tuesday, June 10th. Phillip Securities downgraded Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Morgan Stanley raised their price objective on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a research report on Monday, June 23rd. Cowen initiated coverage on shares of Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating for the company. Finally, Baird R W cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 27th. Seventeen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, Bank of America currently has an average rating of "Moderate Buy" and a consensus target price of $50.13.

Insider Activity

In related news, insider James P. Demare sold 148,391 shares of Bank of America 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 completion of the transaction, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. The trade was a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.30% of the stock is owned by corporate insiders.

Bank of America Price Performance

BAC stock traded up $1.2250 during trading on Friday, hitting $49.4850. 45,055,019 shares of the stock traded hands, compared to its average volume of 33,213,872. Bank of America Corporation has a one year low of $33.06 and a one year high of $49.66. The stock has a market cap of $366.53 billion, a price-to-earnings ratio of 14.47, a P/E/G ratio of 1.92 and a beta of 1.31. The company has a 50 day simple moving average of $47.06 and a 200 day simple moving average of $43.81. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.03. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The firm had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same period last year, the firm posted $0.83 EPS. The firm's quarterly revenue was up 4.3% on a year-over-year basis. Equities analysts expect that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued a $0.28 dividend. This is a positive change from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is presently 30.41%.

Bank of America declared that its board has initiated a share buyback plan on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in shares. This repurchase authorization allows the financial services provider to purchase up to 11.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

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.