Investors Buy Bank of America (BAC) on Weakness

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Investors bought shares of Bank of America Corp (NYSE:BAC) on weakness during trading hours on Wednesday. $459.96 million flowed into the stock on the tick-up and $287.92 million flowed out of the stock on the tick-down, for a money net flow of $172.04 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 ($1.01) for the day and closed at $28.64

A number of research firms have recently commented on BAC. Macquarie cut shares of Bank of America from an “outperform” rating to a “neutral” rating in a research report on Monday, January 7th. They noted that the move was a valuation call. Jefferies Financial Group reissued a “buy” rating on shares of Bank of America in a research report on Tuesday, January 8th. Zacks Investment Research cut shares of Bank of America from a “buy” rating to a “hold” rating in a research report on Tuesday. UBS Group raised shares of Bank of America from a “neutral” rating to a “buy” rating and set a $32.00 target price on the stock in a research report on Tuesday, January 8th. Finally, Edward Jones raised shares of Bank of America from a “hold” rating to a “buy” rating in a research report on Wednesday, January 9th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the company. Bank of America currently has an average rating of “Hold” and a consensus price target of $33.18.

The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.91 and a current ratio of 0.92. The company has a market cap of $293.38 billion, a price-to-earnings ratio of 10.47, a price-to-earnings-growth ratio of 1.26 and a beta of 1.49.

Bank of America (NYSE:BAC) last released its earnings results on Wednesday, January 16th. The financial services provider reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.63 by $0.07. Bank of America had a net margin of 25.45% and a return on equity of 11.66%. The firm had revenue of $22.89 billion during the quarter, compared to analyst estimates of $22.37 billion. During the same quarter in the previous year, the firm earned $0.48 earnings per share. The firm’s revenue for the quarter was up 10.7% compared to the same quarter last year. As a group, sell-side analysts expect that Bank of America Corp will post 2.85 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 1st will be paid a dividend of $0.15 per share. The ex-dividend date is Thursday, February 28th. This represents a $0.60 annualized dividend and a yield of 2.20%. Bank of America’s payout ratio is 22.99%.

A number of hedge funds have recently added to or reduced their stakes in the business. Pinnacle Wealth Management Advisory Group LLC lifted its position in shares of Bank of America by 3.8% in the fourth quarter. Pinnacle Wealth Management Advisory Group LLC now owns 9,573 shares of the financial services provider’s stock worth $236,000 after purchasing an additional 350 shares in the last quarter. Abbot Financial Management Inc. lifted its holdings in shares of Bank of America by 0.3% during the fourth quarter. Abbot Financial Management Inc. now owns 126,174 shares of the financial services provider’s stock valued at $3,109,000 after acquiring an additional 356 shares during the period. Cahill Financial Advisors Inc. lifted its holdings in shares of Bank of America by 4.1% during the fourth quarter. Cahill Financial Advisors Inc. now owns 9,391 shares of the financial services provider’s stock valued at $232,000 after acquiring an additional 369 shares during the period. Gradient Capital Advisors LLC lifted its holdings in shares of Bank of America by 2.1% during the fourth quarter. Gradient Capital Advisors LLC now owns 18,193 shares of the financial services provider’s stock valued at $448,000 after acquiring an additional 380 shares during the period. Finally, Pacific Center for Financial Services lifted its holdings in shares of Bank of America by 4.6% during the fourth quarter. Pacific Center for Financial Services now owns 8,834 shares of the financial services provider’s stock valued at $218,000 after acquiring an additional 392 shares during the period. Hedge funds and other institutional investors own 64.12% of the company’s stock.

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About Bank of America (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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