Vision Capital Management Inc. Increases Stake in Bank of America Corporation $BAC

Key Points

• Vision Capital Management increased its Bank of America stake by 18.8% in the first quarter, buying 19,728 more shares and bringing its total holding to 124,630 shares worth about $6.1 million.
• Bank of America posted a strong recent quarter, with EPS of $1.11 beating estimates and revenue of $30.27 billion topping forecasts. Analysts now expect the company to earn $4.49 per share for the full year.
• The stock has been supported by institutional buying and upbeat analyst sentiment, with 21 Buy ratings and an average target price of $61.60. However, the article also notes a modest regulatory overhang after Merrill Lynch was fined $7.5 million by the SEC.

Vision Capital Management Inc. lifted its position in Bank of America Corporation (NYSE:BAC) by 18.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 124,630 shares of the financial services provider's stock after acquiring an additional 19,728 shares during the quarter. Bank of America accounts for approximately 0.8% of Vision Capital Management Inc.'s investment portfolio, making the stock its 29th largest holding. Vision Capital Management Inc.'s holdings in Bank of America were worth $6,076,000 at the end of the most recent quarter.

A number of other hedge funds also recently added to or reduced their stakes in the business. Abound Financial LLC bought a new stake in shares of Bank of America in the 4th quarter valued at about $26,000. Legacy Bridge LLC boosted its stake in shares of Bank of America by 182.3% during the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 330 shares in the last quarter. Wiser Advisor Group LLC bought a new position in shares of Bank of America during the third quarter valued at approximately $27,000. CrossGen Wealth LLC purchased a new position in Bank of America during the fourth quarter valued at approximately $30,000. Finally, Joseph Group Capital Management purchased a new position in Bank of America during the fourth quarter valued at approximately $32,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Stock Up 2.4%

Shares of BAC stock opened at $58.36 on Thursday. Bank of America Corporation has a 1-year low of $44.75 and a 1-year high of $59.19. The stock's fifty day moving average price is $53.60 and its 200 day moving average price is $52.75. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.81 and a quick ratio of 0.81. The company has a market cap of $414.19 billion, a price-to-earnings ratio of 14.45, a price-to-earnings-growth ratio of 0.96 and a beta of 1.18.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.11. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The business had revenue of $30.27 billion during the quarter, compared to the consensus estimate of $29.72 billion. During the same quarter last year, the company earned $0.90 earnings per share. The company's quarterly revenue was up 10.7% on a year-over-year basis. On average, research analysts expect that Bank of America Corporation will post 4.49 earnings per share for the current fiscal year.

Bank of America Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 5th were given a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Friday, June 5th. Bank of America's payout ratio is currently 27.72%.

Key Bank of America News

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

• Positive Sentiment: Analysts turned more constructive on Bank of America ahead of Q2 results, citing strong earnings expectations and raising price targets. Is Bank of America (BAC) the Most Undervalued American Stock to Invest In?
• Positive Sentiment: Bank of America is expected to deliver another solid quarter, with consensus calling for higher profit and revenue on July 14. Bank of America Likely To Report Higher Q2 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: Senate Democrats asked the Fed’s inspector general to review whether a Fed vice chair’s attendance at a private Bank of America client dinner broke rules; this is a reputational headline, but it does not appear to involve the bank’s operations directly. US Senator Warren calls for Fed watchdog review of Bowman's BofA dinner, WSJ reports
• Negative Sentiment: Bank of America’s Merrill Lynch unit was fined $7.5 million by the SEC over suspicious activity report failures, adding a modest regulatory overhang. Bank of America's Merrill Lynch unit fined $7.5M by U.S. SEC

Insider Transactions at Bank of America

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the transaction, the insider owned 1,373,397 shares in the company, valued at approximately $72,803,774.97. This represents a 8.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.27% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on BAC. UBS Group upped their target price on Bank of America from $62.00 to $63.00 in a report on Wednesday, May 6th. Argus lifted their price target on Bank of America from $59.00 to $62.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Jefferies Financial Group boosted their price target on Bank of America from $60.00 to $65.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Piper Sandler upped their price objective on Bank of America from $53.00 to $59.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Finally, JPMorgan Chase & Co. dropped their price objective on Bank of America from $61.50 to $57.50 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Twenty-one investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, Bank of America currently has an average rating of "Moderate Buy" and a consensus target price of $61.60.

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.

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