Bank of America (NYSE:BAC) Trading Up 1.4% on Strong Earnings

Shares of Bank of America Co. (NYSE:BAC) rose 1.4% during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $42.93 and last traded at $42.72. Approximately 8,306,438 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 38,771,309 shares. The stock had previously closed at $42.14.

The financial services provider reported $0.81 earnings per share for the quarter, beating analysts’ consensus estimates of $0.78 by $0.03. The business had revenue of $25.30 billion for the quarter, compared to analysts’ expectations of $25.25 billion. Bank of America had a return on equity of 10.56% and a net margin of 13.28%. The firm’s revenue for the quarter was up .4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.90 EPS.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 27th. Investors of record on Friday, September 6th were paid a $0.26 dividend. The ex-dividend date of this dividend was Friday, September 6th. This is an increase from Bank of America’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a dividend yield of 2.43%. Bank of America’s dividend payout ratio is 35.99%.

Bank of America declared that its Board of Directors has initiated a share buyback program on Wednesday, July 24th that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the financial services provider to buy up to 7.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have commented on BAC shares. Keefe, Bruyette & Woods raised their price objective on Bank of America from $48.00 to $50.00 and gave the stock an “outperform” rating in a research note on Wednesday. Morgan Stanley raised their price target on Bank of America from $47.00 to $48.00 and gave the stock an “overweight” rating in a research report on Wednesday. Cfra reaffirmed a “sell” rating and set a $39.00 price objective on shares of Bank of America in a research report on Tuesday, July 16th. Evercore ISI raised their target price on shares of Bank of America from $43.00 to $46.00 and gave the company an “outperform” rating in a report on Wednesday, July 17th. Finally, Barclays boosted their target price on shares of Bank of America from $43.00 to $49.00 and gave the company an “overweight” rating in a research report on Wednesday, July 17th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $42.47.

Insiders Place Their Bets

In other news, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of Bank of America stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $40.14, for a total transaction of $160,649,311.50. Following the transaction, the insider now owns 776,614,511 shares in the company, valued at approximately $31,173,306,471.54. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of the firm’s stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $40.14, for a total transaction of $160,649,311.50. Following the completion of the transaction, the insider now directly owns 776,614,511 shares in the company, valued at $31,173,306,471.54. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bernard A. Mensah sold 92,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 27th. The shares were sold at an average price of $39.80, for a total value of $3,661,600.00. Following the completion of the sale, the insider now owns 96,082 shares in the company, valued at $3,824,063.60. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 148,230,389 shares of company stock valued at $6,023,064,684 in the last ninety days. 0.29% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Bank of America

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Delos Wealth Advisors LLC lifted its stake in shares of Bank of America by 402.2% in the 1st quarter. Delos Wealth Advisors LLC now owns 683 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 547 shares during the period. Fairway Wealth LLC acquired a new position in Bank of America in the second quarter valued at approximately $27,000. POM Investment Strategies LLC grew its position in shares of Bank of America by 839.0% during the 2nd quarter. POM Investment Strategies LLC now owns 723 shares of the financial services provider’s stock worth $29,000 after buying an additional 646 shares during the period. Bbjs Financial Advisors LLC acquired a new position in shares of Bank of America during the 2nd quarter valued at $30,000. Finally, Northwest Investment Counselors LLC bought a new stake in Bank of America in the first quarter valued at $33,000. Institutional investors and hedge funds own 70.71% of the company’s stock.

Bank of America Stock Up 1.5 %

The company has a market cap of $334.56 billion, a P/E ratio of 14.78, a PEG ratio of 1.39 and a beta of 1.33. The stock’s 50-day moving average price is $39.62 and its 200-day moving average price is $39.33. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.09.

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