Sumitomo Life Insurance Co. Buys New Shares in Bank of America Corporation $BAC

Key Points

• Sumitomo Life Insurance purchased 142,704 Bank of America shares during the second quarter, valued at approximately $8.1 million. Institutional investors and hedge funds now own 70.71% of BAC’s outstanding stock.
• Analyst sentiment remains favorable, with 21 Buy ratings and six Hold ratings, resulting in a consensus “Moderate Buy” rating and an average price target of $64.08.
• Bank of America exceeded quarterly earnings and revenue expectations, reporting $1.21 in EPS and $31.56 billion in revenue. The company also raised its quarterly dividend from $0.28 to $0.32 per share, implying a 2.0% annualized yield.

Sumitomo Life Insurance Co. purchased a new position in shares of Bank of America Corporation (NYSE:BAC - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 142,704 shares of the financial services provider's stock, valued at approximately $8,131,000.

A number of other hedge funds also recently made changes to their positions in BAC. Turim 21 Investimentos Ltda. acquired a new position in Bank of America in the second quarter valued at $25,000. Abound Financial LLC purchased a new position in shares of Bank of America in the 4th quarter worth about $26,000. Wiser Advisor Group LLC acquired a new position in shares of Bank of America in the 3rd quarter valued at about $27,000. CrossGen Wealth LLC acquired a new position in shares of Bank of America in the 4th quarter valued at about $30,000. Finally, Joseph Group Capital Management purchased a new stake in shares of Bank of America during the 4th quarter worth about $32,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Analyst Ratings Changes

Several research firms recently commented on BAC. Wells Fargo & Company raised their price target on shares of Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Argus set a $70.00 price objective on shares of Bank of America in a research report on Wednesday, July 15th. Oppenheimer downgraded shares of Bank of America from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Citigroup lifted their target price on shares of Bank of America from $62.00 to $66.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Finally, Morgan Stanley upped their price target on shares of Bank of America from $61.00 to $67.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. Twenty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and an average price target of $64.08.

Bank of America Trading Up 0.3%

BAC opened at $62.50 on Wednesday. The firm has a market capitalization of $437.04 billion, a P/E ratio of 14.33, a P/E/G ratio of 0.99 and a beta of 1.17. The firm's 50 day moving average is $60.84 and its 200-day moving average is $54.78. Bank of America Corporation has a 52-week low of $46.12 and a 52-week high of $65.22. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23.

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

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.32 per share. This is a boost from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, September 4th. Bank of America's payout ratio is 25.69%.

Trending Headlines about Bank of America

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

• Positive Sentiment: Bank of America’s analysts continue to favor value stocks, arguing they are well positioned in an environment of higher interest rates and inflation. This supports the broader investment case for BAC, which trades at a relatively moderate earnings multiple and could benefit from durable net interest income. Stick with value stocks until everyone is talking about them
• Positive Sentiment: BofA Global Research says Federal Reserve corporate-credit facilities remain available to limit downside risks in a debt-heavy artificial-intelligence investment cycle. A continued backstop could reduce systemic credit concerns that might otherwise pressure large banks. The debt-fueled AI build-out may already be too big to fail
• Neutral Sentiment: Strategist Michael Hartnett remains bullish on gold, citing concerns about U.S. government debt and currency debasement. The view may support trading and advisory activity at BAC, although it is not a direct change to the bank’s earnings outlook. Why Bank of America strategist Michael Hartnett says the trade is still long gold
• Neutral Sentiment: Bank of America disclosed several changes to indirect equity holdings through Merrill Lynch, including a stake above 10% in Lakefront Biotherapeutics and a reduced position in Hidropar. These appear to be portfolio or client-related transactions rather than a material strategic investment in BAC’s own business. Bank of America builds 10% stake in Lakefront Biotherapeutics
• Negative Sentiment: Bank of America reportedly spends at least $250 million annually on GLP-1 weight-loss drugs for employees. Management views the benefit as an investment in worker health, but the significant recurring expense could weigh on operating costs if it does not produce measurable savings in health-care claims or employee retention. Bank of America is spending $250 million a year on weight loss drugs for employees

About Bank of America

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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