Traders Buy Bank of America (BAC) on Weakness

Traders bought shares of Bank of America Corp (NYSE:BAC) on weakness during trading on Friday. $642.91 million flowed into the stock on the tick-up and $420.21 million flowed out of the stock on the tick-down, for a money net flow of $222.70 million into the stock. Of all equities tracked, Bank of America had the 6th highest net in-flow for the day. Bank of America traded down ($0.55) for the day and closed at $31.95

Several equities analysts recently weighed in on the company. BidaskClub raised Bank of America from a “buy” rating to a “strong-buy” rating in a research report on Monday, October 23rd. ValuEngine cut Bank of America from a “buy” rating to a “hold” rating in a research report on Tuesday, January 16th. BMO Capital Markets reissued a “market perform” rating and set a $29.00 price objective (up previously from $27.00) on shares of Bank of America in a research report on Monday, October 16th. Royal Bank of Canada boosted their price objective on Bank of America to $35.00 and gave the stock an “outperform” rating in a research report on Thursday, January 18th. Finally, Barclays boosted their price objective on Bank of America from $28.00 to $35.00 and gave the stock an “equal weight” rating in a research report on Tuesday, January 2nd. One analyst has rated the stock with a sell rating, nine have given a hold rating and eighteen have issued a buy rating to the company. Bank of America currently has a consensus rating of “Buy” and an average price target of $30.17.

The firm has a market cap of $333,260.00, a P/E ratio of 20.75, a price-to-earnings-growth ratio of 1.62 and a beta of 1.41. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.90 and a current ratio of 0.91.

Bank of America (NYSE:BAC) last released its quarterly earnings data on Wednesday, January 17th. The financial services provider reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.03. Bank of America had a return on equity of 8.54% and a net margin of 18.03%. The company had revenue of $20.69 billion for the quarter, compared to analyst estimates of $21.61 billion. During the same period in the prior year, the company posted $0.40 EPS. The company’s revenue was up 3.5% compared to the same quarter last year. equities research analysts forecast that Bank of America Corp will post 2.46 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 30th. Stockholders of record on Friday, March 2nd will be paid a $0.12 dividend. The ex-dividend date of this dividend is Thursday, March 1st. This represents a $0.48 annualized dividend and a dividend yield of 1.50%. Bank of America’s dividend payout ratio is currently 31.17%.

Bank of America announced that its board has authorized a stock repurchase plan on Tuesday, December 5th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Several hedge funds have recently added to or reduced their stakes in BAC. Janus Henderson Group PLC grew its position in Bank of America by 587.0% during the 2nd quarter. Janus Henderson Group PLC now owns 13,598,678 shares of the financial services provider’s stock worth $329,911,000 after acquiring an additional 11,619,173 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in Bank of America by 27.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 44,136,977 shares of the financial services provider’s stock worth $1,070,762,000 after acquiring an additional 9,612,342 shares during the last quarter. Vanguard Group Inc. grew its position in Bank of America by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 661,494,339 shares of the financial services provider’s stock worth $16,047,853,000 after acquiring an additional 9,117,007 shares during the last quarter. Parametric Portfolio Associates LLC grew its position in Bank of America by 52.4% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 24,012,218 shares of the financial services provider’s stock worth $582,536,000 after acquiring an additional 8,261,288 shares during the last quarter. Finally, Investec Asset Management LTD grew its position in Bank of America by 68.6% during the 2nd quarter. Investec Asset Management LTD now owns 17,772,325 shares of the financial services provider’s stock worth $431,157,000 after acquiring an additional 7,231,615 shares during the last quarter. Institutional investors own 69.51% of the company’s stock.

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Bank of America Company Profile

Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S.

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