Westpac Banking Corp Decreases Holdings in Bank of America Corporation (NYSE:BAC)

Key Points

• Westpac Banking Corp has reduced its stake in Bank of America Corporation by 19.8%, now holding 227,206 shares valued at approximately $9.48 million, making Bank of America its 26th largest position.
• Bank of America plans to repurchase up to $40 billion in shares, representing about 11.1% of its stock, indicating management's belief that the shares are currently undervalued.
• Bank of America declared a quarterly dividend of $0.28, an increase from the previous $0.26, with a current annualized payout ratio of 30.41% and a yield of 2.4%.

Westpac Banking Corp cut its stake in shares of Bank of America Corporation (NYSE:BAC) by 19.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 227,206 shares of the financial services provider's stock after selling 56,083 shares during the period. Bank of America comprises approximately 0.7% of Westpac Banking Corp's holdings, making the stock its 26th largest position. Westpac Banking Corp's holdings in Bank of America were worth $9,481,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in BAC. Vega Investment Solutions bought a new stake in Bank of America during the fourth quarter valued at about $30,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in Bank of America during the fourth quarter valued at about $31,000. Spurstone Advisory Services LLC bought a new stake in Bank of America during the fourth quarter valued at about $34,000. Wood Tarver Financial Group LLC bought a new stake in Bank of America during the fourth quarter valued at about $38,000. Finally, Mascagni Wealth Management Inc. bought a new stake in Bank of America during the fourth quarter valued at about $40,000. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America Stock Up 0.3%

BAC opened at $46.15 on Tuesday. The firm has a 50-day simple moving average of $46.47 and a two-hundred day simple moving average of $43.74. Bank of America Corporation has a 52 week low of $33.06 and a 52 week high of $49.31. The company has a market capitalization of $341.85 billion, a PE ratio of 13.50, a price-to-earnings-growth ratio of 1.79 and a beta of 1.31. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data 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. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The business had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the prior year, the firm earned $0.83 EPS. The business's revenue was up 4.3% on a year-over-year basis. Analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America declared that its Board of Directors has approved a share buyback plan on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in shares. This repurchase authorization allows the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is 30.41%.

Insider Activity at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Analyst Upgrades and Downgrades

BAC has been the subject of several recent research reports. Phillip Securities lowered Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. TD Cowen initiated coverage on Bank of America in a research note on Thursday, May 15th. They issued a "buy" rating and a $53.00 price target for the company. Cowen initiated coverage on Bank of America in a research note on Wednesday, May 14th. They issued a "buy" rating for the company. Truist Financial increased their price target on Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Finally, Piper Sandler cut their price target on Bank of America from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $50.13.

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.

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