State of Wisconsin Investment Board Lowers Stock Position in Bank of America Corporation $BAC

Key Points

• State of Wisconsin Investment Board cut its Bank of America stake by 5.8% in the fourth quarter, selling 229,640 shares and leaving it with 3.7 million shares worth about $203.5 million.
• Bank of America reported stronger-than-expected quarterly results, with EPS of $1.11 versus the $1.00 estimate and revenue of $30.27 billion, while revenue rose 10.7% year over year.
• The company also declared a quarterly dividend of $0.28 per share, implying a 2.0% yield, and analysts currently rate the stock a consensus “Moderate Buy” with a target price of $61.06.

State of Wisconsin Investment Board reduced its stake in Bank of America Corporation (NYSE:BAC) by 5.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,699,216 shares of the financial services provider's stock after selling 229,640 shares during the quarter. Bank of America comprises approximately 0.5% of State of Wisconsin Investment Board's portfolio, making the stock its 27th biggest holding. State of Wisconsin Investment Board owned approximately 0.05% of Bank of America worth $203,457,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of BAC. Vanguard Group Inc. raised its stake in shares of Bank of America by 3.7% during the fourth quarter. Vanguard Group Inc. now owns 651,076,825 shares of the financial services provider's stock worth $35,809,225,000 after acquiring an additional 23,351,183 shares in the last quarter. Capital World Investors raised its stake in shares of Bank of America by 11.0% during the third quarter. Capital World Investors now owns 144,371,118 shares of the financial services provider's stock worth $7,448,816,000 after acquiring an additional 14,275,810 shares in the last quarter. Norges Bank purchased a new position in shares of Bank of America during the fourth quarter worth approximately $4,774,210,000. Bank of New York Mellon Corp raised its stake in shares of Bank of America by 5.4% during the fourth quarter. Bank of New York Mellon Corp now owns 57,619,317 shares of the financial services provider's stock worth $3,169,062,000 after acquiring an additional 2,929,779 shares in the last quarter. Finally, Fisher Asset Management LLC raised its stake in shares of Bank of America by 2.1% during the fourth quarter. Fisher Asset Management LLC now owns 53,783,821 shares of the financial services provider's stock worth $2,958,110,000 after acquiring an additional 1,105,833 shares in the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Stock Up 1.6%

Shares of Bank of America stock opened at $56.79 on Wednesday. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.81 and a current ratio of 0.81. Bank of America Corporation has a 52-week low of $44.06 and a 52-week high of $57.55. The stock has a market capitalization of $402.99 billion, a price-to-earnings ratio of 14.06, a P/E/G ratio of 0.95 and a beta of 1.19. The company's 50 day moving average price is $52.57 and its 200-day moving average price is $52.47.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $0.11. The firm had revenue of $30.27 billion for the quarter, compared to analysts' expectations of $29.72 billion. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The business's revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the business earned $0.90 earnings per share. Equities research analysts forecast that Bank of America Corporation will post 4.45 EPS for the current year.

Bank of America Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 5th will be issued a $0.28 dividend. The ex-dividend date is Friday, June 5th. This represents a $1.12 annualized dividend and a yield of 2.0%. Bank of America's payout ratio is 27.72%.

Analyst Upgrades and Downgrades

Several research analysts have commented on BAC shares. JPMorgan Chase & Co. decreased their price target on shares of Bank of America from $61.50 to $57.50 and set an "overweight" rating on the stock in a research note on Tuesday, April 7th. Robert W. Baird lifted their price target on shares of Bank of America from $56.00 to $58.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Evercore decreased their price target on shares of Bank of America from $70.00 to $61.00 and set an "outperform" rating on the stock in a research note on Friday, May 15th. Daiwa Securities Group lifted their price target on shares of Bank of America from $58.00 to $61.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. Finally, Autonomous Res cut their target price on shares of Bank of America from $62.00 to $54.00 and set a "neutral" rating on the stock in a report on Monday, April 6th. Twenty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $61.06.

Bank of America News Roundup

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

• Positive Sentiment: Bank of America CEO Brian Moynihan said consumers are still spending on discretionary items despite inflation and affordability concerns, reinforcing a constructive outlook for BAC’s retail banking and card businesses. Bank of America CEO Says Consumers Keep Spending Despite Affordability Concerns
• Positive Sentiment: Bank of America data showing consumers are still spending beyond essentials suggests credit-card and deposit trends may remain healthy, which supports the company’s earnings outlook. Latest Credit Card Data Is Good News for Consumer Stocks. Retail Therapy Is Alive and Well.
• Positive Sentiment: Bank of America reiterated a constructive view on several market themes, including AI and select stocks, which can reinforce investor confidence in BAC’s research franchise and broader market positioning. Bank Of America Targets Elder Fraud With AI And Nationwide Scaminars
• Neutral Sentiment: BofA’s “Scaminars” fraud-prevention campaign and AI-based detection efforts are positive for brand reputation and customer protection, but the near-term stock impact is likely limited. Bank of America to Host Thousands of "Scaminars" to Help Protect Clients and Fight Fraud
• Neutral Sentiment: The partnership renewal with the Kansas City Current is a small brand/community initiative and is unlikely to materially affect BAC’s fundamentals or stock performance. Kansas City Current, BofA Announces Multi-Year Partnership Renewal Featuring Enhanced Community Efforts

Insider Buying and Selling

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the firm's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the completion of the transaction, the insider owned 1,373,397 shares of the company's stock, valued at approximately $72,803,774.97. This trade represents a 8.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.27% of the company's stock.

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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