Bank of America Corp (NYSE:BAC)
Moving on, Bank of America Corp (NYSE:BAC) experienced a major victory against the U.S. Justice Department on May 23, when the U.S. appeals court threw out a $1.27 billion verdict against it in a fraud case over Countrywide’s “Hustle” mortgage program, saying that the proof at the trial was insufficient to establish liability. However, this news hasn’t had any positive impact on the stock till now as it continues to trade down 15% year-to-date. Bank of America Corp (NYSE:BAC) currently pays a quarterly dividend $0.05 per share, which based on its current stock price translates into an annual dividend yield 1.38%. On May 16, analysts at Keefe, Bruyette & Woods downgraded the stock to ‘Market Perform’ from ‘Outperform’ and also lowered their price target on the stock to $16 from $17. Hedge funds that increased their stake in the bank during the first quarter included Shane Finemore‘s Manikay Partners, which brought its holding up by 34% to 8 million shares.
Citigroup Inc (NYSE:C)
Citigroup Inc (NYSE:C) was Scion Asset Management’s top equity holding from the banking sector heading into 2016 with the fund owning 100,000 shares of the bank worth $5.17 million at the end of December. Like the stocks of most major banks, Citigroup Inc (NYSE:C)’s stock also suffered a huge decline during the first quarter and ended the quarter down by nearly 20%. However, it has recouped some of those gains this quarter and currently trades down 13.8% year-to-date. For its fiscal 2016 first quarter Citigroup Inc (NYSE:C) reported EPS of $1.10 on revenue of $17.60 billion, compared to EPS of $1.52 on revenue of $19.70 billion it had reported for the same quarter of the previous financial year. The stock currently sports an average rating of ‘Overweight’ and an average price target of $56.54 from the 30 leading analysts who track it. Martin Hughes‘ Toscafund Asset Management reduced its stake in the bank by 43% to 1.17 million shares during the first quarter.