Traders Buy Bank of America (BAC) on Weakness

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Traders purchased shares of Bank of America Corp (NYSE:BAC) on weakness during trading hours on Tuesday. $438.49 million flowed into the stock on the tick-up and $389.37 million flowed out of the stock on the tick-down, for a money net flow of $49.12 million into the stock. Of all equities tracked, Bank of America had the 20th highest net in-flow for the day. Bank of America traded down ($0.36) for the day and closed at $27.02

Several brokerages have weighed in on BAC. ValuEngine cut Bank of America from a “hold” rating to a “sell” rating in a report on Tuesday. Wolfe Research began coverage on Bank of America in a report on Tuesday, September 25th. They issued an “outperform” rating for the company. Finally, BMO Capital Markets lifted their price objective on Bank of America from $35.00 to $36.00 and gave the company a “market perform” rating in a report on Tuesday, October 16th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and eleven have issued a buy rating to the company’s stock. Bank of America has a consensus rating of “Buy” and a consensus price target of $34.19.

The company has a debt-to-equity ratio of 0.98, a current ratio of 0.91 and a quick ratio of 0.91. The firm has a market cap of $290.10 billion, a price-to-earnings ratio of 14.77, a price-to-earnings-growth ratio of 1.39 and a beta of 1.30.

Bank of America (NYSE:BAC) last posted its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.66 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.04. Bank of America had a return on equity of 10.82% and a net margin of 21.85%. The company had revenue of $22.78 billion during the quarter, compared to analysts’ expectations of $22.63 billion. During the same quarter in the previous year, the firm earned $0.48 EPS. Bank of America’s revenue was up 3.2% on a year-over-year basis. As a group, equities research analysts predict that Bank of America Corp will post 2.55 EPS for the current year.

The firm also recently declared a quarterly dividend, which was paid on Friday, September 28th. Stockholders of record on Friday, September 7th were issued a dividend of $0.15 per share. The ex-dividend date was Thursday, September 6th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.22%. This is a boost from Bank of America’s previous quarterly dividend of $0.12. Bank of America’s payout ratio is 32.79%.

Bank of America declared that its board has approved a share repurchase 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 buy up to 7.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

In other news, insider Catherine P. Bessant sold 15,820 shares of the business’s stock in a transaction on Thursday, August 9th. The stock was sold at an average price of $31.61, for a total transaction of $500,070.20. Following the completion of the transaction, the insider now owns 483,680 shares of the company’s stock, valued at approximately $15,289,124.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.10% of the stock is currently owned by insiders.

Several institutional investors have recently bought and sold shares of BAC. CSat Investment Advisory L.P. bought a new stake in Bank of America during the 2nd quarter worth $103,000. McKinley Carter Wealth Services Inc. bought a new stake in Bank of America during the 1st quarter worth $105,000. Cardinal Capital Management Inc. bought a new stake in Bank of America during the 3rd quarter worth $106,000. Quad Cities Investment Group LLC bought a new stake in Bank of America during the 2nd quarter worth $112,000. Finally, Arlington Partners LLC bought a new stake in Bank of America during the 3rd quarter worth $118,000. 65.14% of the stock is owned by 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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