Top 5 Value Stocks Hedge Funds are Buying in 2022

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 99

P/E Ratio as of May 26: 10.46

Bank of America Corporation (NYSE:BAC) offers financial products and services to individual consumers, small and middle-market businesses, institutional investors, large enterprises, and governments worldwide. In Q1 2022, 99 hedge funds were long Bank of America Corporation (NYSE:BAC), up from 84 funds in the preceding quarter. 

Bank of America Corporation (NYSE:BAC) declared on April 27 a $0.21 per share quarterly dividend, in line with previous. The dividend is distributable on June 24, to shareholders of record on June 23. Bank of America Corporation (NYSE:BAC) delivers a dividend yield of 2.29% as of May 27. 

On May 3, Oppenheimer analyst Chris Kotowski maintained an Outperform rating on Bank of America Corporation (NYSE:BAC) but lowered the price target on the stock to $50 from $52. Loan growth and high interest rates are good for banks, and even amid a recession, the banking industry “would handle it better than any recession in history”, the analyst told investors. 

According to Insider Monkey’s Q1 data, Harris Associates is a significant shareholder of Bank of America Corporation (NYSE:BAC), with more than 44 million shares worth $1.8 billion. 

Here is what ClearBridge Investments has to say about Bank of America Corporation (NYSE:BAC) in its Q1 2021 investor letter:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”