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Citigroup Upgrades Bank of America Preferred Stock to Buy

A recent report indicates that Citigroup has upgraded the outlook for Bank of America Corporation's preferred stock from Neutral to Buy, which could have significant implications for investor sentiment and stock prices in the near term.

Date: 
AI Rating:   7

The report outlines a positive shift in outlook for Bank of America Corporation's preferred stock, which could positively impact investor sentiment. Citigroup's upgrade from Neutral to Buy suggests that the stock is viewed more favorably, indicating expectations of better performance in the future.

Institutional ownership dynamics are also noteworthy. There are currently 25 funds or institutions with positions in Bank of America Corporation's preferred stock. This number has remained unchanged over the last quarter, but the average portfolio weight of all funds dedicated to BAC.PRO increased by 1.69% to 0.34%. This might signal growing interest among institutional investors, as they assess the potential for increased returns.

However, total shares owned by institutions fell by 1.86%, indicating some caution within the investment community. This decline might reflect broader market conditions or specific concerns about future performance.

Examining the actions of major institutional shareholders provides more insight into sentiment. Some funds reported decreases in their holdings of BAC.PRO:

  • PFF - iShares Preferred and Income Securities ETF decreased its shares from 2,131K to 2,068K, down 3.03%.
  • PGX - Invesco Preferred ETF also showed a reduction in holdings, decreasing from 1,906K to 1,759K shares, which translates to an 8.34% drop.
  • FPE - First Trust Preferred Securities and Income ETF slightly reduced its shares from 923K to 918K, down just 0.47%.

On the other hand, PFFD - Global X U.S. Preferred ETF increased its allocation from 746K to 764K shares, reflecting a 2.44% uptick, suggesting some positive sentiment despite overall decreases in other funds.

In summary, while the Citigroup upgrade is a strong positive indicator, the fluctuations in institutional ownership and mixed actions from various funds highlight a nuanced picture in investor sentiment surrounding Bank of America Corporation's preferred stock. The overall impact on stock prices could hinge on market reactions to this upgrade and institutional strategies moving forward.

Stocks:  BAC.PRO