Representative Jefferson Shreve (R-Indiana) recently made headlines with a disclosed acquisition of Bank of America Corporation (NYSE:BAC) shares. This transaction, revealed in a June 22nd filing, highlights the financial activities of public officials and their transparency requirements.
The specific details of the trade indicate that Shreve purchased between $15,001 and $50,000 in Bank of America stock on May 8th. This notable acquisition was executed through the Representative’s “CRT – STANDARD UNIT TRUST” account, underscoring the mechanisms by which such investments are made public.
Analyzing Bank of America’s market performance provides crucial context for this investment. Shares opened at $45.65 on a recent Friday, maintaining a 50-day moving average of $46.27 and a two-hundred day moving average of $43.79. The company also exhibits robust financial health with a quick ratio of 0.79, a current ratio of 0.80, and a debt-to-equity ratio of 1.14.
Further enhancing its investor appeal, Bank of America recently announced a quarterly dividend of $0.28 per share, payable on Friday, September 26th, to shareholders of record by September 5th. This marks an increase from the previous $0.26 dividend, resulting in a $1.12 annualized dividend and a 2.5% yield, reflecting a payout ratio of 30.41%.
In a significant corporate move, Bank of America’s Board of Directors authorized a substantial $40.00 billion stock buyback program on July 23rd. This authorization permits the repurchase of up to 11.1% of its stock through open market purchases, a strategic decision often interpreted as a sign of management’s belief that the company’s stock is currently undervalued.
The financial community holds a varied yet generally positive outlook on BAC, with several brokerages issuing reports. Analyst ratings range from “hold” to “buy,” and despite some price objective adjustments, the consensus target price for Bank of America stands at $50.13, signifying a “Moderate Buy” rating according to MarketBeat.com.
Institutional investors and hedge funds have actively adjusted their positions in Bank of America. Firms like Nova Wealth Management Inc. and CGC Financial Services LLC have significantly increased their stakes, while others have acquired new positions, collectively accounting for 70.71% of the stock currently owned by institutional entities.
Adding another layer to the financial disclosures, an insider recently sold 148,391 shares of Bank of America stock on August 1st for over $6.7 million. This transaction, publicly filed with the SEC, resulted in a nearly 40% decrease in the insider’s ownership, though they still retain a substantial holding.
Representative Jefferson Shreve, a Republican representing Indiana’s 6th Congressional District, assumed office on January 3, 2025, with his current term ending in 2027. His career background includes experience as a real estate executive, and he has held various roles within the Indiana Republican State Committee, providing context to his public persona and financial activities.
