Unusual Put Option Trade in Bank Of America Worth $816K

On May 11, 2023 at 13:15:13 ET an unusually large $816.00K block of Put contracts in Bank Of America (BAC) was sold, with a strike price of $32.00 / share, expiring in 253 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 5.04 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in BAC options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 3987 funds or institutions reporting positions in Bank Of America. This is an increase of 46 owner(s) or 1.17% in the last quarter. Average portfolio weight of all funds dedicated to BAC is 0.75%, a decrease of 2.48%. Total shares owned by institutions decreased in the last three months by 0.60% to 6,287,236K shares. The put/call ratio of BAC is 1.05, indicating a bearish outlook.

Analyst Price Forecast Suggests 36.07% Upside

As of May 10, 2023, the average one-year price target for Bank Of America is 37.17. The forecasts range from a low of 28.28 to a high of $49.35. The average price target represents an increase of 36.07% from its latest reported closing price of 27.32.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Bank Of America is 104,670MM, an increase of 10.72%. The projected annual non-GAAP EPS is 3.72.

What are Other Shareholders Doing?

Berkshire Hathaway holds 1,010,101K shares representing 12.68% ownership of the company. No change in the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 207,270K shares representing 2.60% ownership of the company. In it’s prior filing, the firm reported owning 203,766K shares, representing an increase of 1.69%. The firm increased its portfolio allocation in BAC by 3.02% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 161,347K shares representing 2.02% ownership of the company. In it’s prior filing, the firm reported owning 158,472K shares, representing an increase of 1.78%. The firm increased its portfolio allocation in BAC by 2.87% over the last quarter.

Jpmorgan Chase holds 135,109K shares representing 1.70% ownership of the company. In it’s prior filing, the firm reported owning 141,761K shares, representing a decrease of 4.92%. The firm decreased its portfolio allocation in BAC by 90.51% over the last quarter.

Price T Rowe Associates holds 127,178K shares representing 1.60% ownership of the company. In it’s prior filing, the firm reported owning 103,646K shares, representing an increase of 18.50%. The firm increased its portfolio allocation in BAC by 32.13% over the last quarter.

Bank Of America Declares $0.22 Dividend

On April 26, 2023 the company declared a regular quarterly dividend of $0.22 per share ($0.88 annualized). Shareholders of record as of June 2, 2023 will receive the payment on June 30, 2023. Previously, the company paid $0.22 per share.

At the current share price of $27.32 / share, the stock’s dividend yield is 3.22%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.32%, the lowest has been 1.54%, and the highest has been 3.98%. The standard deviation of yields is 0.45 (n=237).

The current dividend yield is 2.02 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.25. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.

Bank Of America Background Information
(This description is provided by the company.)

Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,900 lending centers, 2,500 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,300 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

See all Bank Of America regulatory filings.

This article originally appeared on Fintel

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