Aster Capital Management DIFC Ltd significantly increased its investment in Bank of America Corporation (NYSE: BAC) during the third quarter of 2023. The institutional investor raised its stake by a remarkable 357.1%, as indicated in its recent 13F filing with the Securities and Exchange Commission (SEC). Following this acquisition, Aster now holds 48,427 shares of Bank of America, having purchased an additional 37,832 shares throughout the quarter. This investment now represents approximately 1.3% of Aster’s total holdings, making Bank of America its eighth largest position.
As of the latest filing, Aster Capital Management’s investment in Bank of America is valued at $2,498,000. Other institutional investors have also adjusted their positions in the financial services giant during this period. For instance, 1ST Source Bank increased its holdings by 1.1%, now owning 98,615 shares worth approximately $5,088,000. Additionally, Handelsbanken Fonder AB expanded its stake by 23.4%, acquiring 3,026,473 shares valued at about $156,136,000.
Moreover, Andra AP fonden raised its position by 10.0%, bringing its total to 46,200 shares, valued at $2,383,000. Artisan Partners Limited Partnership also increased its holdings by 2.6%, now owning 3,037,943 shares worth approximately $156,727,000. Lastly, Close Asset Management Ltd boosted its stake by 40.2%, acquiring an additional 34,000 shares to total 118,584 shares, valued at $6,115,000. Overall, institutional investors currently own 70.71% of Bank of America’s stock.
On the trading front, shares of Bank of America opened at $52.28 on Friday, reflecting a 1.1% increase. The bank has a market capitalization of $381.77 billion, with a price-to-earnings (P/E) ratio of 13.65 and a debt-to-equity ratio of 1.15. Over the past year, the stock has fluctuated between a low of $33.06 and a high of $57.55. The bank’s 50-day moving average stands at $54.02, while the 200-day moving average is $52.38.
In its last earnings announcement on January 14, 2024, Bank of America reported earnings per share (EPS) of $0.98, surpassing analyst expectations of $0.96 by $0.02. The financial services provider recorded a return on equity of 11.07% and a net margin of 16.23%. Revenue for the quarter reached $4.53 billion, significantly below the anticipated $27.73 billion, but still represented a 12.3% year-over-year increase. Analysts predict Bank of America will post an EPS of $3.70 for the current fiscal year.
In addition to its impressive earnings, the bank announced a quarterly dividend of $0.28 per share, payable on March 27, 2024. Shareholders of record by March 6, 2024 will receive this dividend, which translates to an annualized dividend of $1.12 and a yield of 2.1%. The company’s dividend payout ratio stands at 29.24%.
Several research analysts have recently weighed in on Bank of America. Notably, CICC Research initiated coverage on the stock with an “outperform” rating and a target price of $62.00. Similarly, JPMorgan Chase & Co. increased its price objective from $58.00 to $61.00, maintaining an “overweight” rating. Royal Bank of Canada raised its target from $56.00 to $59.00, while Oppenheimer upped its target from $55.00 to $63.00, both granting the stock an “outperform” rating. Overall, 22 analysts have rated Bank of America with a Buy rating, while four have assigned a Hold rating, leading to a consensus rating of “Moderate Buy” with an average price target of $60.30.
Bank of America, headquartered in Charlotte, North Carolina, is a multinational financial services corporation that offers a wide range of banking, investment, asset management, and related financial products. The firm serves individual consumers, small and middle-market businesses, large corporations, governments, and institutional investors, operating through various segments including consumer banking and global wealth management.
