5 Best Bank Stocks to Buy Amid Rising Inflation

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 99

Bank of America Corporation (NYSE:BAC), one of the Big Four banking institutes of the U.S., is a financial and bank holding company. In the first quarter of 2022, the biggest shareholder in Bank of America Corporation (NYSE:BAC) was Warren Buffett’s Berkshire Hathaway Inc.

On June 24, Morgan Stanley analyst Betsy Graseck maintained an Equal Weight rating on Bank of America Corporation (NYSE:BAC)’s stock and lowered the price target from $49 to $47.

Based on the database of Insider Monkey that tracks 912 funds, 99 hedge funds had shares in Bank of America Corporation (NYSE:BAC) worth $45.4 billion in the first quarter of 2022. The hedge fund sentiment is positive as 84 funds held stakes in the previous quarter.

The PEG ratio of Bank of America Corporation (NYSE:BAC) is 1.30 while its industry has a PEG ratio of 1.36. The corporation repurchased $25 billion of common stock in 2021. In early April, the board of directors announced a regular quarterly cash dividend of $0.21 to be payable on June 24.

Here is what Aristotle Capital Management said about Bank of America Corporation (NYSE:BAC) in its first-quarter 2022 investor letter:

“We first invested in Bank of America during the second quarter of 2013. During our near decade as investors, Bank of America closed the chapter on the legacy issues from acquired Countrywide, including mortgage write-downs and substantial legal charges. In addition, it successfully turned the Merrill Lynch franchise into one of the leading U.S. brokerage and advisory firms. Thanks to what we consider to be a strong management team led by CEO Brian Moynihan, the bank went through years of simplification, improved its cost structure and efficiency ratio, and reduced risk. While we believe Bank of America remains a much-improved market leader, we decided to exit our position and use the proceeds to invest in Brookfield Asset Management.”