Sumitomo Mitsui Trust Group Inc. Has $783.76 Million Position in Bank of America Corporation $BAC

Key Points

• Sumitomo Mitsui Trust Group Inc. increased its ownership of Bank of America shares by 5.7%, bringing its total stake to 16,562,952 shares valued at approximately $783.76 million.
• Bank of America reported a $1.06 EPS for the recent quarter, exceeding the consensus estimate of $0.93, and achieved revenue of $28.09 billion, up 10.8% year-over-year.
• The company recently announced a $40 billion share buyback program, which suggests that its leadership believes the stock is undervalued.

Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Bank of America Corporation (NYSE:BAC) by 5.7% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 16,562,952 shares of the financial services provider's stock after acquiring an additional 894,027 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.22% of Bank of America worth $783,759,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the stock. Boston Common Asset Management LLC increased its stake in Bank of America by 10.5% during the 2nd quarter. Boston Common Asset Management LLC now owns 259,680 shares of the financial services provider's stock valued at $12,288,000 after purchasing an additional 24,740 shares in the last quarter. Disciplined Investments LLC bought a new stake in shares of Bank of America in the 2nd quarter worth $217,000. Nicholas Hoffman & Company LLC. grew its stake in shares of Bank of America by 121.0% in the 1st quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider's stock worth $2,589,000 after acquiring an additional 33,963 shares in the last quarter. Sunbeam Capital Management LLC grew its position in Bank of America by 7.3% during the second quarter. Sunbeam Capital Management LLC now owns 6,476 shares of the financial services provider's stock valued at $306,000 after buying an additional 439 shares during the period. Finally, CCG Wealth Management LLC bought a new position in Bank of America during the second quarter valued at about $287,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Price Performance

BAC stock opened at $52.33 on Friday. The company has a market capitalization of $387.58 billion, a PE ratio of 14.26, a price-to-earnings-growth ratio of 1.94 and a beta of 1.33. Bank of America Corporation has a one year low of $33.06 and a one year high of $52.88. The company's fifty day moving average price is $50.47 and its 200-day moving average price is $46.19. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.79 and a current ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $1.06 EPS for the quarter, beating the consensus estimate of $0.93 by $0.13. Bank of America had a return on equity of 10.76% and a net margin of 15.70%.The company had revenue of $28.09 billion for the quarter, compared to the consensus estimate of $27.05 billion. During the same quarter in the prior year, the company posted $0.81 EPS. Bank of America's quarterly revenue was up 10.8% on a year-over-year basis. On average, equities analysts anticipate that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 26th. Investors of record on Friday, December 5th will be given a dividend of $0.28 per share. The ex-dividend date of this dividend is Friday, December 5th. This represents a $1.12 dividend on an annualized basis and a yield of 2.1%. Bank of America's dividend payout ratio (DPR) is presently 30.52%.

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

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Evercore ISI lifted their target price on shares of Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research note on Thursday, October 16th. Royal Bank Of Canada increased their price target on shares of Bank of America from $53.00 to $56.00 and gave the company an "outperform" rating in a research report on Wednesday, October 1st. Argus raised their target price on shares of Bank of America from $53.00 to $58.00 in a report on Friday, October 17th. JPMorgan Chase & Co. raised their target price on shares of Bank of America from $51.00 to $55.00 and gave the stock an "overweight" rating in a report on Friday, October 10th. Finally, Robert W. Baird reaffirmed a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a research note on Friday, June 27th. Twenty-three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $57.23.

Insiders Place Their Bets

In other Bank of America news, insider James P. Demare sold 148,391 shares of the stock in a transaction dated 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 completion of the sale, the insider directly owned 223,407 shares in the company, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.30% of the stock is currently owned by insiders.

Bank of America 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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