Stanley Capital Management LLC Takes Position in Bank of America Corporation $BAC

Key Points

• Stanley Capital Management initiated a Bank of America position worth approximately $18.3 million, purchasing 321,642 shares. Institutional investors collectively own 70.71% of BAC.
• Analysts maintain a favorable outlook, with 21 Buy ratings and six Holds, producing a “Moderate Buy” consensus and an average price target of $64.08.
• Bank of America exceeded quarterly earnings and revenue expectations, while revenue rose 19.6% year over year. The bank also raised its quarterly dividend to $0.32 per share, implying a 2.1% yield.

Stanley Capital Management LLC bought a new position in Bank of America Corporation (NYSE:BAC - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 321,642 shares of the financial services provider's stock, valued at approximately $18,327,000. Bank of America comprises about 2.4% of Stanley Capital Management LLC's investment portfolio, making the stock its 19th biggest position.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Hsbc Holdings PLC bought a new stake in shares of Bank of America in the 2nd quarter worth approximately $2,334,000. EFG International AG bought a new stake in Bank of America in the second quarter valued at $104,315,000. Ancora Advisors LLC bought a new position in Bank of America in the 2nd quarter worth $40,767,000. Redwood Grove Capital LLC purchased a new stake in shares of Bank of America in the 2nd quarter worth about $12,166,000. Finally, Primecap Management Co. CA bought a new stake in shares of Bank of America during the 2nd quarter valued at about $175,677,000. Institutional investors own 70.71% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have commented on BAC. Truist Financial raised their price objective on shares of Bank of America from $64.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 15th. Citigroup lifted their price target on Bank of America from $62.00 to $66.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. Royal Bank Of Canada raised their price objective on Bank of America from $59.00 to $65.00 and gave the company an "outperform" rating in a research report on Wednesday, July 15th. Wells Fargo & Company upped their target price on shares of Bank of America from $67.00 to $69.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Finally, Oppenheimer cut shares of Bank of America from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. Twenty-one equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $64.08.

Bank of America Price Performance

Shares of NYSE:BAC opened at $61.17 on Friday. Bank of America Corporation has a fifty-two week low of $46.12 and a fifty-two week high of $65.22. The business has a 50-day simple moving average of $61.06 and a two-hundred day simple moving average of $54.86. 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 firm has a market cap of $427.73 billion, a price-to-earnings ratio of 14.03, a price-to-earnings-growth ratio of 0.99 and a beta of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The firm had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $30.78 billion. During the same quarter last year, the firm posted $0.89 EPS. The business's quarterly revenue was up 19.6% compared to the same quarter last year. On average, analysts expect that Bank of America Corporation will post 4.68 earnings per share for the current year.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.32 dividend. This is an increase from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, September 4th. Bank of America's dividend payout ratio is 25.69%.

Bank of America News Roundup

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

• Positive Sentiment: Bank of America’s AI initiatives, including branch expansion and automation, may improve operating efficiency and customer service over time. However, continued expense growth could limit the near-term benefit. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Positive Sentiment: BofA Securities continues to demonstrate a constructive view on major growth and technology markets, reiterating Buy ratings on Alibaba, Nvidia, Prudential and Elbit Systems. The activity supports the visibility of BAC’s investment-banking and research franchise, although it has limited direct impact on earnings. Alibaba Raises $10 Billion for AI — Why BofA Is Looking Past the Dilution
• Neutral Sentiment: Bank of America issued several senior unsecured notes in August, with maturities extending from 2029 to 2046. The issuance supports liquidity and funding flexibility, but adds to interest obligations and offers no immediate change to the company’s earnings outlook. What Bank of America (BAC)'s New Debt Issuance and AI Credit Research Push Means For Shareholders
• Negative Sentiment: The SEC reportedly subpoenaed Bank of America, Goldman Sachs, JPMorgan and Citigroup regarding margin lending to hedge fund Situational Awareness, which suffered a 67% drawdown during an AI-stock sell-off. The investigation raises potential legal, compliance and credit-loss risks, particularly if leveraged clients cannot meet obligations. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: Persistent operating-cost pressure remains a concern for BAC investors. While AI and branch expansion could boost productivity, elevated expenses may weigh on margins and reduce the benefit of the bank’s recent revenue growth.

Bank of America Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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