Wise Wealth Partners Takes $277,000 Position in Bank of America Corporation $BAC

Key Points

• Wise Wealth Partners has acquired a new stake in Bank of America Corporation valued at approximately $277,000 by purchasing 5,845 shares in the second quarter.
• Bank of America recently announced a $40 billion share buyback program, signaling that the board believes the stock is undervalued.
• The company has increased its quarterly dividend from $0.26 to $0.28 per share, translating to an annualized yield of 2.2%.

Wise Wealth Partners purchased a new stake in Bank of America Corporation (NYSE:BAC) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 5,845 shares of the financial services provider's stock, valued at approximately $277,000.

A number of other hedge funds have also recently added to or reduced their stakes in BAC. Roundview Capital LLC increased its position in Bank of America by 3.6% in the 2nd quarter. Roundview Capital LLC now owns 84,582 shares of the financial services provider's stock valued at $4,002,000 after acquiring an additional 2,909 shares in the last quarter. Sunbeam Capital Management LLC lifted its position in shares of Bank of America by 7.3% during the second quarter. Sunbeam Capital Management LLC now owns 6,476 shares of the financial services provider's stock worth $306,000 after purchasing an additional 439 shares in the last quarter. Tyche Wealth Partners LLC grew its stake in shares of Bank of America by 5.0% during the second quarter. Tyche Wealth Partners LLC now owns 13,513 shares of the financial services provider's stock valued at $639,000 after purchasing an additional 642 shares during the last quarter. KLP Kapitalforvaltning AS increased its holdings in shares of Bank of America by 6.5% in the second quarter. KLP Kapitalforvaltning AS now owns 2,819,941 shares of the financial services provider's stock valued at $133,440,000 after purchasing an additional 172,400 shares in the last quarter. Finally, RMG Wealth Management LLC acquired a new stake in shares of Bank of America in the second quarter valued at approximately $28,000. Institutional investors own 70.71% of the company's stock.

Insiders Place Their Bets

In other news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction on Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the transaction, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.30% of the company's stock.

Bank of America Trading Down 0.6%

NYSE:BAC opened at $50.36 on Tuesday. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. Bank of America Corporation has a 1-year low of $33.06 and a 1-year high of $52.88. The firm has a market capitalization of $373.01 billion, a price-to-earnings ratio of 14.73, a PEG ratio of 1.96 and a beta of 1.33. The business's 50-day moving average price is $49.42 and its two-hundred day moving average price is $45.35.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.03. The company had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The company's revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.83 EPS. On average, equities analysts expect that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America announced that its board has approved a share buyback program on Wednesday, July 23rd that allows the company to buyback $40.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Friday, September 5th were paid a $0.28 dividend. The ex-dividend date of this dividend was Friday, September 5th. This is a boost from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 2.2%. Bank of America's payout ratio is currently 32.75%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on BAC. Oppenheimer reduced their price objective on Bank of America from $57.00 to $56.00 and set an "outperform" rating on the stock in a report on Tuesday, September 23rd. Weiss Ratings restated a "buy (b-)" rating on shares of Bank of America in a research report on Saturday, September 27th. Deutsche Bank Aktiengesellschaft upped their price target on Bank of America from $56.00 to $58.00 and gave the company a "buy" rating in a research note on Tuesday, September 30th. Evercore ISI lifted their price objective on Bank of America from $49.00 to $55.00 and gave the stock an "outperform" rating in a research report on Tuesday, September 30th. Finally, Truist Financial boosted their price objective on Bank of America from $51.00 to $56.00 and gave the stock a "buy" rating in a report on Tuesday, September 23rd. Nineteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $53.38.

Bank of America 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.

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