Varma Mutual Pension Insurance Co Takes $68.93 Million Position in Bank of America Corporation $BAC

Key Points

• Varma Mutual Pension Insurance Co. acquired 1.21 million Bank of America shares in the second quarter, worth approximately $68.93 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America reported quarterly EPS of $1.21, beating estimates of $1.13, while revenue rose 19.6% year over year to $31.56 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $64.08.
• The bank raised its quarterly dividend from $0.28 to $0.32 per share, equivalent to an annualized $1.28 dividend and a 2.0% yield.

Varma Mutual Pension Insurance Co purchased a new stake in Bank of America Corporation (NYSE:BAC - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 1,209,724 shares of the financial services provider's stock, valued at approximately $68,930,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in BAC. Handelsbanken Fonder AB raised its holdings in shares of Bank of America by 53.0% in the fourth quarter. Handelsbanken Fonder AB now owns 4,629,553 shares of the financial services provider's stock worth $254,625,000 after buying an additional 1,603,080 shares during the period. E Fund Management Co. Ltd. purchased a new position in Bank of America during the 2nd quarter valued at $4,089,000. Bernicke Wealth Management Ltd. bought a new position in Bank of America in the 2nd quarter valued at $2,132,000. Legal & General Group Plc increased its stake in Bank of America by 3.4% in the fourth quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider's stock worth $2,497,655,000 after purchasing an additional 1,487,809 shares during the period. Finally, Mondrian Investment Partners LTD lifted its position in shares of Bank of America by 34.3% during the fourth quarter. Mondrian Investment Partners LTD now owns 2,175,401 shares of the financial services provider's stock worth $119,647,000 after purchasing an additional 555,063 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

More Bank of America News

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

Bank of America Price Performance

Shares of BAC stock opened at $62.50 on Wednesday. Bank of America Corporation has a 1-year low of $46.12 and a 1-year high of $65.22. The stock's 50-day moving average is $60.84 and its 200 day moving average is $54.78. The company has a market cap of $437.04 billion, a P/E ratio of 14.33, a PEG ratio of 0.99 and a beta of 1.17. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82.

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

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors 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. The ex-dividend date is Friday, September 4th. This represents a $1.28 annualized dividend and a dividend yield of 2.0%. Bank of America's dividend payout ratio (DPR) is presently 25.69%.

Analysts Set New Price Targets

A number of research analysts have recently commented on BAC shares. Robert W. Baird upped their price target on shares of Bank of America from $58.00 to $62.00 and gave the stock a "neutral" rating in a report on Wednesday, July 15th. Truist Financial upped their target price on shares of Bank of America from $64.00 to $65.00 and gave the stock a "buy" rating in a research note on Wednesday, July 15th. Citigroup lifted their price target on shares of Bank of America from $62.00 to $66.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. Wells Fargo & Company boosted their price target on Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Finally, Argus set a $70.00 price objective on Bank of America in a report on Wednesday, July 15th. Twenty-one investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Bank of America currently has an average rating of "Moderate Buy" and an average price target of $64.08.

Bank of America Profile

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.

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