Vanguard Group Inc. Sells 16,643,736 Shares of Bank of America Corporation (NYSE:BAC)

Key Points

• Vanguard Group Inc. has reduced its stake in Bank of America by 2.5%, selling 16,643,736 shares and now holds approximately 641 million shares, making it the 24th largest holding in its portfolio.
• Bank of America announced a $40 billion stock repurchase plan, allowing it to buy back up to 11.1% of its stock, which is often seen as a sign that shares are undervalued.
• The bank recently increased its quarterly dividend from $0.26 to $0.28 per share, representing a 2.5% dividend yield based on an annualized payout of $1.12.

Vanguard Group Inc. lowered its position in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 2.5% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 641,191,128 shares of the financial services provider's stock after selling 16,643,736 shares during the period. Bank of America accounts for approximately 0.5% of Vanguard Group Inc.'s investment portfolio, making the stock its 24th biggest holding. Vanguard Group Inc. owned approximately 8.51% of Bank of America worth $26,756,906,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD increased its stake in Bank of America by 10.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock valued at $5,381,126,000 after acquiring an additional 11,691,451 shares during the last quarter. Capital World Investors boosted its position in Bank of America by 23.9% during the 4th quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider's stock worth $3,876,853,000 after buying an additional 17,031,143 shares during the period. Northern Trust Corp grew its stake in shares of Bank of America by 17.2% in the fourth quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock worth $2,985,785,000 after purchasing an additional 9,980,859 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in Bank of America by 1.3% in the first quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock valued at $2,521,218,000 after purchasing an additional 803,570 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Bank of America by 12.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,092,517 shares of the financial services provider's stock worth $1,981,816,000 after buying an additional 5,092,504 shares during the period. 70.71% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms recently commented on BAC. Robert W. Baird reaffirmed a "neutral" rating and issued a $52.00 price objective on shares of Bank of America in a research note on Friday, June 27th. Wall Street Zen cut shares of Bank of America from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Keefe, Bruyette & Woods cut their price target on shares of Bank of America from $55.00 to $52.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 16th. TD Cowen began coverage on Bank of America in a research note on Thursday, May 15th. They issued a "buy" rating and a $53.00 price objective on the stock. Finally, Argus dropped their price target on shares of Bank of America from $53.00 to $47.00 and set a "buy" rating on the stock in a research report on Wednesday, April 16th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $50.13.

Bank of America Price Performance

NYSE:BAC traded down $0.55 during midday trading on Thursday, hitting $44.87. The company had a trading volume of 30,604,012 shares, compared to its average volume of 38,320,360. The stock's fifty day moving average price is $46.39 and its 200-day moving average price is $43.78. Bank of America Corporation has a 52-week low of $33.06 and a 52-week high of $49.31. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The company has a market capitalization of $332.34 billion, a PE ratio of 13.12, a P/E/G ratio of 1.76 and a beta of 1.31.

Bank of America (NYSE:BAC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $26.79 billion. During the same period last year, the firm posted $0.83 EPS. Bank of America's revenue for the quarter was up 4.3% compared to the same quarter last year. As a group, research analysts expect that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be given a dividend of $0.28 per share. The ex-dividend date is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 2.5%. Bank of America's dividend payout ratio (DPR) is currently 30.41%.

Bank of America declared that its Board of Directors has approved a stock repurchase program on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 11.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the business's 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 owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. The trade was a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.30% of the stock is currently owned by insiders.

Bank of America Company 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.