Investors Buy Bank of America (BAC) on Weakness

Investors bought shares of Bank of America Corp (NYSE:BAC) on weakness during trading on Thursday. $525.22 million flowed into the stock on the tick-up and $367.43 million flowed out of the stock on the tick-down, for a money net flow of $157.79 million into the stock. Of all companies tracked, Bank of America had the 4th highest net in-flow for the day. Bank of America traded down ($0.88) for the day and closed at $28.36

Separately, Wolfe Research began coverage on shares of Bank of America in a report on Tuesday, September 25th. They set an “outperform” rating on the stock. Seven research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus price target of $33.35.

The firm has a market cap of $301.78 billion, a PE ratio of 15.55, a price-to-earnings-growth ratio of 1.46 and a beta of 1.30. The company has a current ratio of 0.91, a quick ratio of 0.90 and a debt-to-equity ratio of 0.94.

Bank of America (NYSE:BAC) last released its earnings results on Monday, July 16th. The financial services provider reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.06. The business had revenue of $22.60 billion for the quarter, compared to analyst estimates of $22.49 billion. Bank of America had a net margin of 20.86% and a return on equity of 10.06%. Bank of America’s revenue for the quarter was down .9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.46 earnings per share. Equities research analysts forecast that Bank of America Corp will post 2.52 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, September 28th. Investors of record on Friday, September 7th were issued a $0.15 dividend. This is a positive change from Bank of America’s previous quarterly dividend of $0.12. The ex-dividend date was Thursday, September 6th. This represents a $0.60 annualized dividend and a yield of 2.11%. Bank of America’s payout ratio is presently 32.79%.

Bank of America declared that its board has initiated a stock repurchase plan on Thursday, June 28th that permits the company to repurchase $20.60 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 7.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

In related news, insider Catherine P. Bessant sold 15,820 shares of the business’s stock in a transaction on Thursday, August 9th. The shares were sold at an average price of $31.61, for a total value of $500,070.20. Following the transaction, the insider now owns 483,680 shares in the company, valued at $15,289,124.80. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.10% of the stock is owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. McKinley Carter Wealth Services Inc. bought a new stake in Bank of America in the first quarter valued at $105,000. Cardinal Capital Management Inc. bought a new stake in Bank of America in the third quarter valued at $106,000. CSat Investment Advisory L.P. bought a new stake in Bank of America in the second quarter valued at $103,000. Quad Cities Investment Group LLC bought a new stake in Bank of America in the second quarter valued at $112,000. Finally, WealthTrust Fairport LLC bought a new stake in Bank of America in the first quarter valued at $141,000. 65.08% of the stock is owned by hedge funds and other institutional investors.

Bank of America Company Profile (NYSE:BAC)

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 through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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