IMS Cuts Bank of America Stake 48.7% as Brighton Jones & First Financial Increase Positions
IMS Investment Management Services Ltd. cut its Bank of America stake by 48.7% to 27,317 shares ($1.409m) in Q3 after selling 25,965 shares. Brighton Jones LLC increased its position 30% to 108,872 shares ($4.785m) and First Financial Bankshares grew holdings 14.7% to 1.66m shares ($69.4m).
1. Institutional Position Changes
In the third quarter, Analyst IMS Investment Management Services Ltd. cut its Bank of America stake by 48.7%, selling 25,965 shares and ending the period with 27,317 shares valued at $1.409 million. Brighton Jones LLC boosted its holdings by 30.0%, acquiring 25,143 additional shares to reach 108,872 shares worth $4.785 million. Quarry LP opened a new position valued at approximately $512,000, while First Financial Bankshares Inc. raised its stake by 14.7%, adding 213,731 shares to reach 1,663,914 shares valued at $69.435 million. Focus Partners Advisor Solutions LLC increased its position by 12.0% to 136,846 shares ($5.710 million), and Maverick Capital Ltd. initiated a new position valued at about $152.098 million. Together, institutional and hedge fund ownership stands at 70.71% of the company’s shares.
2. Q3 Earnings and Financial Metrics
Bank of America reported third-quarter adjusted earnings per share of $1.06, exceeding consensus estimates by $0.13, and delivered revenue of $5.35 billion, up 10.8% year-over-year. The firm achieved a net margin of 15.7% and a return on equity of 10.76%. The consumer banking division saw loan balances rise by 4.2% from the prior quarter, while deposit balances grew 3.1%, supporting margin expansion in the quarter’s rising rate environment.
3. Dividend Policy and Payout
The board approved a quarterly dividend of $0.28 per share, representing an annualized payout of $1.12 and a yield of 2.0%. The dividend payout ratio stands at 30.52%, reflecting the bank’s commitment to returning capital while maintaining a common equity Tier 1 ratio above 11%, comfortably above regulatory thresholds.
4. Analyst Sentiment and Sector Outlook
CEO Brian Moynihan signaled expectations for easing tariff headwinds in 2026, reducing a key macro risk and potentially supporting corporate loan demand. Several firms reiterated Outperform or Buy ratings following management meetings and sector reviews, citing improved net interest margins and broad industry momentum through 2025. At the same time, some commentators caution that current valuation levels already price in strong execution, suggesting upside may be limited without further beats on guidance.