World Equity Group Inc. has significantly increased its holdings in Bank of America Corporation (NYSE: BAC) by 21.8% during the third quarter of 2023, according to the company’s latest Form 13F filing with the Securities and Exchange Commission (SEC). The investment firm now owns 73,188 shares of the financial services provider after acquiring an additional 13,119 shares during the period. Bank of America represents 0.9% of World Equity Group Inc.’s total holdings, making it the 22nd largest position in their portfolio, valued at approximately $3,779,000.
Institutional investors and hedge funds have also been active in adjusting their stakes in Bank of America. Notably, Norges Bank acquired a new position in the bank valued at around $5.09 billion during the second quarter. In the same period, Arrowstreet Capital Limited Partnership expanded its holdings by 124.8%, now owning 17,619,837 shares worth about $833.77 million after adding 9,782,208 shares. Additionally, ABN AMRO Bank N.V. purchased a new stake valued at approximately $202.44 million.
In a remarkable move, OMERS ADMINISTRATION Corp raised its holdings by 881.5%, now owning 4,210,388 shares valued at $199.24 million after acquiring an additional 3,781,417 shares. Another investor, Kingstone Capital Partners Texas LLC, also entered the market with a new stake worth about $164.62 million. Currently, institutional investors and hedge funds control 70.71% of Bank of America’s stock.
Bank of America’s Recent Performance and Analyst Forecasts
Bank of America recently reported its earnings results for the third quarter on October 15, 2023. The firm announced earnings per share of $1.06, surpassing the consensus estimate of $0.93 by $0.13. The company’s revenue for the quarter was $5.35 billion, in contrast to the consensus estimate of $27.05 billion. Bank of America recorded a return on equity of 10.76% and a net margin of 15.70%. This quarterly revenue reflects a 10.8% increase compared to the same period last year, when earnings per share were $0.81. Analysts project that Bank of America will report an earnings per share of 3.7 for the current fiscal year.
The company also declared a quarterly dividend recently, which was disbursed on December 26, 2023. Shareholders on record as of December 5, 2023 received a dividend of $0.28 per share, representing an annualized dividend of $1.12 and a yield of 2.0%. The current payout ratio stands at 30.52%.
Analyst Ratings and Market Outlook
Bank of America’s stock has been the focus of several recent analyst reports. Royal Bank of Canada raised its target price from $56.00 to $59.00, assigning the company an “outperform” rating on December 12, 2023. Similarly, JPMorgan Chase & Co. increased its target price from $58.00 to $61.00, also giving the stock an “overweight” rating. Other firms, including Erste Group Bank and The Goldman Sachs Group, have upgraded their ratings, with Goldman Sachs adjusting its target from $58.00 to $64.00.
Currently, one analyst rates the stock as a Strong Buy, while twenty-three have issued a Buy rating, and four maintain a Hold rating. According to MarketBeat, the average rating for Bank of America stands at “Moderate Buy,” with an average price target of $59.82.
Bank of America Corporation, headquartered in Charlotte, North Carolina, is a leading multinational financial services company. It offers a wide range of banking, investment, asset management, and risk management products and services to individuals, businesses, and institutions globally. The firm operates through various segments, including consumer banking and global wealth management, providing services such as loans, deposits, and advisory capabilities.
