An Insider Bought $230,000 Worth of Bank of America

Page 1 of 2

Bank of America Corp (NYSE:BAC) Board member David Yost directly purchased 20,000 shares of the company’s stock on January 24th at an average price of $11.53, according to a filing with the SEC. This nearly doubled Yost’s holdings of the stock; he had last bought shares in early November at prices of about $9.50. See a history of Yost’s insider purchases at Bank of America and at other companies. We track insider purchases because studies show that they tend to be bullish signals (read more about studies on insider trading). We think that this is because company insiders have to be more confident than usual that the stock price will rise in order to overcome the benefits of diversification. Yost is buying the stock on the strength of a rally- the stock is up 58% in the last year.

The bank has already reported its results for the fourth quarter of 2012, with performance not being particularly good. Revenue was down 25% from the same period in 2011, and earnings fell 63%. However, Bank of America Corp does get attention in the financial community for some attractive valuation metrics. The stock trades at a significant discount to book value- the P/B ratio is only 0.6- and while recent financials have not been impressive Wall Street analysts have the stock trading at 12 times this year’s earnings and a forward P/E of 9. The five-year PEG ratio is 0.6 as the sell-side actually considers Bank of America undervalued on an earnings basis.

best gold ETF

Bank of America Corp was one of the most popular stocks among hedge funds in the third quarter of 2012 (see the full top ten list). Billionaire John Paulson sold some of his shares during the quarter but still reported a position of 28 million shares at the end of September (check out Paulson’s stock picks). Platinum Asset Management, managed by billionaire Kerr Neilson, owned a little over 35 million shares and this made Bank of America one of that fund’s largest 13F holdings (find more of Neilson’s favorite stocks). Bruce Berkowitz’s Fairholme had over $900 million invested in the stock.

However, other large banks look like better investments:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!