Spectrum Financial Alliance Ltd LLC Has $44.23 Million Stock Position in Bank of America Corporation (NYSE:BAC)

Key Points

• Spectrum Financial Alliance Ltd LLC increased its stake in Bank of America Corporation by 5.0%, now holding approximately 1,059,902 shares worth about $44.23 million.
• Bank of America announced a new share buyback program, authorizing up to $40 billion in stock repurchases, which indicates the board believes the stock is undervalued.
• The company increased its quarterly dividend to $0.28 per share, up from $0.26, leading to an annualized dividend of $1.12 with a yield of 2.31%.

Spectrum Financial Alliance Ltd LLC increased its position in shares of Bank of America Corporation (NYSE:BAC) by 5.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,059,902 shares of the financial services provider's stock after acquiring an additional 50,795 shares during the quarter. Bank of America comprises approximately 14.4% of Spectrum Financial Alliance Ltd LLC's investment portfolio, making the stock its 2nd biggest holding. Spectrum Financial Alliance Ltd LLC's holdings in Bank of America were worth $44,230,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of the company. Geode Capital Management LLC increased its holdings in shares of Bank of America by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 142,289,199 shares of the financial services provider's stock worth $6,243,000,000 after acquiring an additional 2,033,229 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Bank of America by 10.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock valued at $5,381,126,000 after purchasing an additional 11,691,451 shares in the last quarter. Capital World Investors grew its position in shares of Bank of America by 23.9% in the 4th quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider's stock valued at $3,876,853,000 after purchasing an additional 17,031,143 shares during the period. Northern Trust Corp increased its stake in Bank of America by 17.2% during the 4th quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock worth $2,985,785,000 after purchasing an additional 9,980,859 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in Bank of America by 1.3% during the 1st quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock worth $2,521,218,000 after buying an additional 803,570 shares during the period. Institutional investors and hedge funds own 70.71% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on BAC. Royal Bank Of Canada set a $53.00 price target on shares of Bank of America and gave the company an "outperform" rating in a report on Monday, June 30th. Piper Sandler reduced their target price on shares of Bank of America from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, April 16th. Evercore ISI lowered their target price on Bank of America from $51.00 to $48.00 and set an "outperform" rating for the company in a report on Tuesday, April 1st. Oppenheimer cut their price target on Bank of America from $57.00 to $55.00 and set an "outperform" rating on the stock in a report on Thursday, July 17th. Finally, Morgan Stanley increased their price objective on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a report on Monday, June 23rd. One research analyst has rated the stock with a sell rating, five have issued a hold rating, seventeen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $50.03.

Bank of America Stock Up 0.2%

Shares of BAC stock opened at $48.47 on Friday. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $49.31. The stock has a market cap of $365.09 billion, a price-to-earnings ratio of 14.17, a PEG ratio of 1.88 and a beta of 1.30. The firm's 50-day moving average is $45.91 and its 200-day moving average is $43.75. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80.

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 for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. The business's revenue was up 4.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.83 earnings per share. Sell-side analysts predict that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America declared that its board has approved a share buyback program on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 11.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued a dividend of $0.28 per share. The ex-dividend date of this dividend is Friday, September 5th. 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 2.31%. Bank of America's payout ratio is presently 30.41%.

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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