Strs Ohio Makes New $84.07 Million Investment in Bank of America Corporation $BAC

Key Points

• Strs Ohio has acquired a new position in Bank of America by purchasing 2,014,527 shares, valued at approximately $84.07 million.
• Bank of America recently announced an increase in its quarterly dividend from $0.26 to $0.28 per share, indicating a potential boost in shareholder returns.
• The company also authorized a $40 billion stock buyback program, allowing for the repurchase of up to 11.1% of its shares, signaling management's belief in the stock's undervaluation.

Strs Ohio bought a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 2,014,527 shares of the financial services provider's stock, valued at approximately $84,066,000.

Other large investors have also bought and sold shares of the company. Vega Investment Solutions bought a new stake in Bank of America during the 4th quarter worth approximately $30,000. Spurstone Advisory Services LLC bought a new stake in Bank of America during the 4th quarter worth approximately $34,000. Wood Tarver Financial Group LLC bought a new stake in Bank of America during the 4th quarter worth approximately $38,000. Mascagni Wealth Management Inc. bought a new stake in Bank of America during the 4th quarter worth approximately $40,000. Finally, Cloud Capital Management LLC acquired a new position in Bank of America during the 1st quarter worth approximately $40,000. 70.71% of the stock is owned by institutional investors.

Insiders Place Their Bets

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 represents a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.30% of the company's stock.

Bank of America Stock Down 0.3%

Shares of NYSE BAC traded down $0.15 during trading hours on Friday, hitting $50.60. The company had a trading volume of 27,849,333 shares, compared to its average volume of 35,238,896. The stock has a market capitalization of $374.79 billion, a P/E ratio of 14.80, a price-to-earnings-growth ratio of 1.97 and a beta of 1.34. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $50.96. The firm's 50 day moving average is $48.13 and its 200-day moving average is $44.28.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, beating 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 company had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the prior year, the firm posted $0.83 EPS. The firm's revenue for the quarter was up 4.3% compared to the same quarter last year. On average, analysts expect that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America announced that its board has authorized a share repurchase plan 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 plans are often an indication that the company's management believes its shares are undervalued.

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 paid a $0.28 dividend. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a yield of 2.2%. Bank of America's dividend payout ratio (DPR) is currently 32.75%.

Analyst Ratings Changes

A number of research firms have weighed in on BAC. Morgan Stanley upped their price target 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. The Goldman Sachs Group upped their price target on Bank of America from $46.00 to $52.00 and gave the stock a "buy" rating in a research report on Tuesday, June 10th. Hsbc Global Res downgraded Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. HSBC downgraded Bank of America from a "buy" rating to a "hold" rating and upped their price target for the stock from $47.00 to $51.00 in a research report on Monday, July 7th. Finally, Truist Financial upped their price target on Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Sixteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Bank of America has an average rating of "Moderate Buy" and an average target price of $50.39.

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.