Korea Investment CORP Makes New $223.09 Million Investment in Bank of America Corporation $BAC

Korea Investment CORP acquired a new stake in shares of Bank of America Corporation (NYSE:BAC) during the second quarter, Holdings Channel.com reports. The firm acquired 3,915,142 shares of the financial services provider’s stock, valued at approximately $223,085,000.

Other institutional investors have also recently made changes to their positions in the company. EP Wealth Advisors LLC purchased a new position in shares of Bank of America during the 2nd quarter worth about $652,000. Pinnacle West Asset Management Inc. purchased a new stake in Bank of America in the 2nd quarter worth about $374,000. Ieq Capital LLC bought a new stake in Bank of America in the second quarter worth about $410,000. Burnham & Co LLC purchased a new position in shares of Bank of America during the second quarter valued at approximately $199,000. Finally, Callan Family Office LLC purchased a new position in shares of Bank of America during the second quarter valued at approximately $318,000. Institutional investors own 70.71% of the company’s stock.

Bank of America Stock Up 0.3%

Shares of NYSE:BAC opened at $62.50 on Wednesday. The business’s 50 day moving average is $60.84 and its 200 day moving average is $54.78. The stock has a market cap of $437.04 billion, a P/E ratio of 14.33, a price-to-earnings-growth ratio of 0.99 and a beta of 1.17. Bank of America Corporation has a 52-week low of $46.12 and a 52-week high of $65.22. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23.

Bank of America (NYSE:BAC) last issued its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, beating analysts’ consensus estimates of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The business had revenue of $31.56 billion during the quarter, compared to analyst estimates of $30.78 billion. During the same period in the previous year, the company posted $0.89 EPS. Bank of America’s revenue was up 19.6% on a year-over-year basis. Sell-side analysts predict that Bank of America Corporation will post 4.68 EPS for the current year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.32 dividend. The ex-dividend date is Friday, September 4th. This is an increase from Bank of America’s previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.0%. Bank of America’s dividend payout ratio is presently 25.69%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on BAC shares. Robert W. Baird raised their price target on Bank of America from $58.00 to $62.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 15th. Argus set a $70.00 target price on Bank of America in a research note on Wednesday, July 15th. Jefferies Financial Group reiterated a “buy” rating and issued a $75.00 target price on shares of Bank of America in a research note on Tuesday, July 14th. Morgan Stanley boosted their target price on shares of Bank of America from $61.00 to $67.00 and gave the company an “overweight” rating in a research note on Monday, June 29th. Finally, Citigroup upped their price target on shares of Bank of America from $62.00 to $66.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Twenty-one investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $64.08.

Key Bank of America News

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America’s analysts continue to favor value stocks, arguing they are well positioned in an environment of higher interest rates and inflation. This supports the broader investment case for BAC, which trades at a relatively moderate earnings multiple and could benefit from durable net interest income. Stick with value stocks until everyone is talking about them
• Positive Sentiment: BofA Global Research says Federal Reserve corporate-credit facilities remain available to limit downside risks in a debt-heavy artificial-intelligence investment cycle. A continued backstop could reduce systemic credit concerns that might otherwise pressure large banks. The debt-fueled AI build-out may already be too big to fail
• Neutral Sentiment: Strategist Michael Hartnett remains bullish on gold, citing concerns about U.S. government debt and currency debasement. The view may support trading and advisory activity at BAC, although it is not a direct change to the bank’s earnings outlook. Why Bank of America strategist Michael Hartnett says the trade is still long gold
• Neutral Sentiment: Bank of America disclosed several changes to indirect equity holdings through Merrill Lynch, including a stake above 10% in Lakefront Biotherapeutics and a reduced position in Hidropar. These appear to be portfolio or client-related transactions rather than a material strategic investment in BAC’s own business. Bank of America builds 10% stake in Lakefront Biotherapeutics
• Negative Sentiment: Bank of America reportedly spends at least $250 million annually on GLP-1 weight-loss drugs for employees. Management views the benefit as an investment in worker health, but the significant recurring expense could weigh on operating costs if it does not produce measurable savings in health-care claims or employee retention. Bank of America is spending $250 million a year on weight loss drugs for employees

About Bank of America

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.