Do BofA’s Biggest Shareholders See $8 Around the Corner?
In 2012, Bank of America Corporation’s (NYSE:BAC) shares are up 37.41 percent. On Tuesday, Newcastle Investment Corp. and Nationstar Mortgage Holdings Inc. announced that the bank is selling them the servicing rights on $10.4 billion in residential mortgages. By acquiring the rights, the companies will service loans in government-sponsored enterprise pools. Nationstar will be responsible for servicing the loans, while Newcastle’s $44 million investment will give them the right for 65 percent of the monthly cash flow from the mortgage services.
According to Bloomberg, Bank of America assists about half of American households with mortgages and has been trying to simplify its business by selling assets, cutting costs and paying down debt. Recently, it shut down a division that worked with third-party home lenders.
With its additional shedding in the mortgage business, will Bank of America’s largest shareholders cut their holdings? 844 institutional firms indicated owning shares of Bank of America Corporation (NYSE:BAC) in Q1 2012. These firms reported owning a total of 2.862 billion shares on 03/31/2012 . The shares closed at $9.57 on 03/31/2012.
Here are the ten largest positions in Bank of America Corporation at the end of March 31st, 2012.
State Street Corp held 428,817,575 shares on 03/31/2012 worth $4,103,784,062.
Blackrock Institutional Trust Company N.A. held 277,121,806 shares on 03/31/2012 worth $2,652,055,599.
Dodge & Cox held 135,136,869 shares on 03/31/2012 worth $1,293,259,795.
Bank of New York Mellon Corp held 109,594,793 shares on 03/31/2012 worth $1,048,822,136.
Franklin Resources Inc held 102,698,669 shares on 03/31/2012 worth $982,826,231.
Blackrock Group Ltd held 79,607,190 shares on 03/31/2012 worth $761,840,784.
Susquehanna International Group LLP held 79,378,600 shares on 03/31/2012 worth $759,653,000.
Blackrock Fund Advisors held 75,393,646 shares on 03/31/2012 worth $721,517,169.
Korea Investment Corp held 72,720,745 shares on 03/31/2012 worth $695,937,507.
Barrow Hanley Mewhinney & Strauss LLC held 70,144,304 shares on 03/31/2012 worth $671,280,968.
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