TD Asset Management Inc Has $117.83 Million Holdings in Bank of America Corporation (NYSE:BAC)

Key Points

• TD Asset Management Inc has reduced its position in Bank of America Corporation by 2.3%, now holding approximately 2.8 million shares valued at $117.8 million.
• Bank of America has increased its quarterly dividend to $0.28 per share, with a total annualized yield of 2.31% and a continued low payout ratio of 30.41%.
• The company's board has authorized a significant share repurchase plan of $40 billion, indicating a belief that its stock is undervalued.

TD Asset Management Inc decreased its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 2.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 2,823,663 shares of the financial services provider's stock after selling 66,885 shares during the quarter. TD Asset Management Inc's holdings in Bank of America were worth $117,831,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Gradient Investments LLC lifted its holdings in shares of Bank of America by 7.8% during the first quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock worth $29,061,000 after buying an additional 50,296 shares during the last quarter. Employees Retirement System of Texas lifted its position in shares of Bank of America by 12.7% in the 4th quarter. Employees Retirement System of Texas now owns 158,455 shares of the financial services provider's stock worth $69,640,000 after acquiring an additional 17,880 shares during the period. Prosperity Wealth Management Inc. bought a new stake in shares of Bank of America in the 1st quarter worth approximately $998,000. Alpha Cubed Investments LLC lifted its position in shares of Bank of America by 37.2% in the 1st quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock worth $2,714,000 after acquiring an additional 17,619 shares during the period. Finally, International Assets Investment Management LLC lifted its position in shares of Bank of America by 170.5% in the 1st quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock worth $9,951,000 after acquiring an additional 150,299 shares during the period. Institutional investors own 70.71% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on BAC. Robert W. Baird reiterated a "neutral" rating and issued a $52.00 price objective on shares of Bank of America in a research report on Friday, June 27th. Argus reduced their price objective on Bank of America from $53.00 to $47.00 and set a "buy" rating for the company in a research report on Wednesday, April 16th. Morgan Stanley raised their price objective 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. Oppenheimer raised their price objective on Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research report on Wednesday. Finally, Citigroup raised their target price on Bank of America from $50.00 to $54.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. One analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $50.13.

Bank of America Trading Up 0.8%

Shares of NYSE BAC traded up $0.40 during midday trading on Wednesday, hitting $48.35. The stock had a trading volume of 9,883,148 shares, compared to its average volume of 42,847,574. The company's 50-day simple moving average is $46.05 and its 200 day simple moving average is $43.77. The firm has a market cap of $364.20 billion, a P/E ratio of 14.14, a price-to-earnings-growth ratio of 1.88 and a beta of 1.30. Bank of America Corporation has a fifty-two week low of $33.06 and a fifty-two week high of $49.31. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last released its earnings results 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. The company had revenue of ($22,273.00) million during the quarter, compared to analysts' expectations of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. The business's revenue for the quarter was up 4.3% on a year-over-year basis. During the same period last year, the firm earned $0.83 EPS. Research analysts anticipate that Bank of America Corporation will post 3.7 EPS for the current year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders 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. This represents a $1.12 annualized dividend and a dividend yield of 2.32%. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is 30.41%.

Bank of America announced that its board has approved a stock buyback plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to purchase up to 11.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board believes its shares are undervalued.

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.