Traders Buy Shares of Bank of America (BAC) on Weakness
Traders bought shares of Bank of America Corp (NYSE:BAC) on weakness during trading hours on Wednesday. $268.26 million flowed into the stock on the tick-up and $200.55 million flowed out of the stock on the tick-down, for a money net flow of $67.71 million into the stock. Of all companies tracked, Bank of America had the 14th highest net in-flow for the day. Bank of America traded down ($0.15) for the day and closed at $28.68
BAC has been the topic of a number of research analyst reports. Barclays raised their price target on Bank of America from $35.00 to $37.00 and gave the company an “equal weight” rating in a report on Tuesday, April 17th. Vetr lowered Bank of America from a “strong-buy” rating to a “buy” rating and set a $33.17 price target on the stock. in a report on Tuesday, April 17th. ValuEngine lowered Bank of America from a “buy” rating to a “hold” rating in a report on Wednesday, April 18th. Jefferies Financial Group reaffirmed a “buy” rating and set a $34.00 target price on shares of Bank of America in a report on Tuesday, April 17th. Finally, Citigroup lifted their target price on Bank of America from $32.00 to $34.00 and gave the stock a “neutral” rating in a report on Tuesday, April 24th. Nine investment analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of $32.25.
The company has a quick ratio of 0.91, a current ratio of 0.92 and a debt-to-equity ratio of 0.96. The stock has a market cap of $297.58 billion, a price-to-earnings ratio of 15.67, a price-to-earnings-growth ratio of 1.43 and a beta of 1.32.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 29th. Shareholders of record on Friday, June 1st were given a dividend of $0.12 per share. The ex-dividend date was Thursday, May 31st. This represents a $0.48 dividend on an annualized basis and a yield of 1.67%. Bank of America’s payout ratio is presently 26.23%.
Bank of America announced that its Board of Directors has approved a share buyback program on Thursday, June 28th that allows the company to buyback $20.60 billion in shares. This buyback authorization allows the financial services provider to purchase up to 7.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.
A number of hedge funds and other institutional investors have recently made changes to their positions in BAC. Abbrea Capital LLC raised its stake in shares of Bank of America by 2.6% during the 4th quarter. Abbrea Capital LLC now owns 61,950 shares of the financial services provider’s stock worth $1,829,000 after purchasing an additional 1,566 shares in the last quarter. Sumitomo Life Insurance Co. raised its stake in shares of Bank of America by 5.4% during the 4th quarter. Sumitomo Life Insurance Co. now owns 403,552 shares of the financial services provider’s stock worth $11,913,000 after purchasing an additional 20,682 shares in the last quarter. Gabalex Capital Management LLC purchased a new stake in shares of Bank of America during the 4th quarter worth about $4,428,000. Quantitative Systematic Strategies LLC purchased a new stake in shares of Bank of America during the 4th quarter worth about $869,000. Finally, Ifrah Financial Services Inc. purchased a new stake in shares of Bank of America during the 4th quarter worth about $222,000. Hedge funds and other institutional investors own 67.03% of the company’s stock.
Bank of America Company 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 through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
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