Insiders Are Buying the Dip on These 5 Stocks

In this article, we discuss the 5 stocks that insiders are buying the dip on. If you want to read about some more stocks that insiders are buying the dip on, go directly to Insiders Are Buying the Dip on These 10 Stocks. 

5. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders in Q1 2022: 99

Number of Hedge Fund Holders in Q4 2021: 84 

Decrease in Share Price Year-to-Date (through July 26th): 27.26%  

Return since July 26th: 17.0%

Bank of America Corporation (NYSE:BAC) provides banking and financial products. On July 18, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.73, missing market estimates by $0.02. The revenue over the period was $22.7 billion, up over 5% compared to the revenue over the same period last year but missing expectations by $90 million. However, despite the earnings misses, the firm raised the dividend by 5% to $0.22 per share. The forward yield was 2.64%. 

On July 14, RBC Capital analyst Gerard Cassidy maintained an Outperform rating on Bank of America Corporation (NYSE:BAC) stock and lowered the price target to $40 from $45, backing the diversified business model of the firm to navigate through uncertain times. 

At the end of the first quarter of 2022, 99 hedge funds in the database of Insider Monkey held stakes worth $45 billion in Bank of America Corporation (NYSE:BAC), compared to 84 in the previous quarter worth $47 billion.

In its Q1 2022 investor letter, Aristotle Capital Management, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:

“We first invested in Bank of America Corporation (NYSE:BAC) 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 Corporation (NYSE:BAC) remains a much-improved market leader, we decided to exit our position and use the proceeds to invest in Brookfield Asset Management.”