Bank of America Corp (BAC) Shares Up As Shareholders Seek to Own it Prior to Ex-dividend Date


Shares of Bank of America Corp (NYSE:BAC) are up in morning trading as shareholders rush to buy the stock prior to the ex-dividend date tomorrow. Those who own the stock prior to this date (December 2) will qualify for the quarterly dividend.

While Bank of America certainly isn’t known for their high dividend yields, they do pay 5 cents per share each quarter, which comes out to around 1.1% annually based on its current price. This makes today the perfect opportunity to jump at this dividend no matter how small it may be.

Dividend or not, many people expect a federal rate hike sometime soon, and this too can only be good news for the company.

The stock is up 1.26% or $0.22 after the news, hitting $17.65 per share. About 25.19M shares traded hands. BAC has risen 11.37% since April 28, 2015 and is uptrending. It has outperformed by 12.27% the S&P500.

Out of 15 analysts covering Bank of America (NYSE:BAC), 10 rate it “Buy”, 0 “Sell”, while 5 “Hold”. This means 67% are positive. $21 is the highest target while $17 is the lowest. The $18.97 average target is 7.48% above today’s ($17.65) stock price. Bank of America was the topic in 30 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Jefferies maintained the stock on October 7 with “Buy” rating. Robert W. Baird upgraded it to “Neutral” rating and $18.0 target price in an August 25 report. Bernstein upgraded the shares of BAC in a report on September 1 to “Buy” rating. Bernstein upgraded the firm’s rating on August 25. Bernstein has “Mkt Perform” rating and $19.0 price target. Finally, Macquarie Research upgraded the stock to “Hold” rating in a September 1 report.

The institutional sentiment increased to 1.01 in Q2 2015. Its up 0.03, from 0.98 in 2015Q1. The ratio increased, as 86 funds sold all Bank of America Corp shares owned while 523 reduced positions. 119 funds bought stakes while 498 increased positions. They now own 6.35 billion shares or 1.75% more from 6.24 billion shares in 2015Q1.

Mizuho Bank Ltd. holds 48.78% of its portfolio in Bank of America Corp for 31.25 million shares. Boyle Capital Management Llc owns 1.91 million shares or 32.65% of their US portfolio. Moreover, Daily Journal Corp has 28.95% invested in the company for 2.30 million shares. The New York-based Geduld E E has invested 26.54% in the stock. Fairholme Capital Management Llc, a Florida-based fund reported 75.49 million shares.

Since July 23, 2015, the stock had 0 buys, and 1 sale for $135,831 net activity. Nguyen Thong M sold 7,520 shares worth $135,831.

Bank of America Corporation is a bank holding firm and a financial holding company. The company has a market cap of $184.20 billion. The Firm is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, firms and Governments with a range of banking, investing, asset management and other financial and risk management services and products. It has 13.07 P/E ratio. Through its banking and various nonbank subsidiaries, it provides a range of banking and nonbank financial services and products.