Bank of America (BAC) Coverage Initiated at Wolfe Research

Wolfe Research initiated coverage on shares of Bank of America (NYSE:BAC) in a report published on Tuesday, The Fly reports. The firm issued an outperform rating on the financial services provider’s stock.

NYSE BAC opened at $30.67 on Tuesday. The company has a quick ratio of 0.90, a current ratio of 0.91 and a debt-to-equity ratio of 0.94. Bank of America has a 52 week low of $24.68 and a 52 week high of $33.05. The company has a market cap of $314.89 billion, a price-to-earnings ratio of 13.97, a PEG ratio of 1.52 and a beta of 1.27.

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

Bank of America declared that its board has approved a stock repurchase program on Thursday, June 28th that permits the company to buyback $20.60 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 7.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

The company also recently declared a quarterly dividend, which will be paid on Friday, September 28th. Shareholders of record on Friday, September 7th will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.96%. The ex-dividend date is Thursday, September 6th. This is a boost from Bank of America’s previous quarterly dividend of $0.12. Bank of America’s payout ratio is 32.79%.

In other Bank of America news, insider Catherine P. Bessant sold 15,820 shares of the business’s stock in a transaction that occurred on Thursday, August 9th. The shares were 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 in the company, valued at approximately $15,289,124.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.10% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Old Port Advisors acquired a new position in shares of Bank of America in the 2nd quarter valued at $594,000. Summit X LLC boosted its holdings in shares of Bank of America by 20.4% in the 2nd quarter. Summit X LLC now owns 13,743 shares of the financial services provider’s stock valued at $391,000 after buying an additional 2,329 shares in the last quarter. Rehmann Capital Advisory Group boosted its holdings in shares of Bank of America by 15.8% in the 2nd quarter. Rehmann Capital Advisory Group now owns 29,857 shares of the financial services provider’s stock valued at $842,000 after buying an additional 4,084 shares in the last quarter. Royal London Asset Management Ltd. acquired a new position in shares of Bank of America in the 2nd quarter valued at $111,692,000. Finally, SP Asset Management acquired a new position in shares of Bank of America in the 2nd quarter valued at $9,933,000. Institutional investors own 65.04% of the company’s stock.

About Bank of America

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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