Insider Trading Fri 8/2/24

Notable purchases -- 10% owner adds to TALO; notable sales -- Buffett still active in BAC

Buyers:

• BYON Director bought 5,000 shares at $10.65 - $10.66 worth approx. $53K.
• DAR EVP Chief Strategy Officer bought 2,532 shares at $39.37 worth approx. $100K.
• NXPI Chair bought 146 shares at $257.535 worth approx. $38K.
• TALO 10% owner Control Empresarial de Capitales S.A. de C.V. disclosed the purchase of another 250,000 shares worth approx. $2.85 mln.

Sellers:

• BAC 10% owner Berkshire Hathaway's (BRK.A) Warren Buffett sold 19,216,833 shares worth approx. $778.7 mln.
• FBP EVP sold 22,896 shares at $21.5329 worth approx. $493K.
• RGEN Senior VP, R&D sold 4,465 shares at $165.67 worth approx. $740K.
• TNGX 10% owner sold 235,000 shares at $9.80 - $10.21 worth approx. $2.3 mln.

Berkshire Hathaway (Warren Buffett) discloses updated portfolio positions in 13F filing

New DHI NVR LEN positions, Exited MCK MMC, Lowered ATVI GM CVX holdings

Highlights from Q2 2023 filing as compared to Q1 2023:

• New positions in: DHI (~5.97 mln shares), LEN (~0.15 mln), NVR (~0.01 mln)
• Increased positions in: OXY (affirmed increased to ~224.13 mln shares from ~211.71 mln shares), COF (to ~12.47 mln from ~9.92 mln)
• Maintained positions in: BAC (~1032.85 mln shares), AAPL (~915.56 mln shares), KO (~400 mln shares), KHC  (~325.63 mln shares), AXP (~151.61 mln shares), HPQ (~120.95 mln shares), DVA (~36.1 mln shares), MCO (~24.67 mln shares)
• Closed positions in: MCK (from ~2.29 mln shares), MMC (from ~0.4 mln), VTS (from ~0.05 mln)
• Decreased positions in: ATVI (to ~14.66 mln shares from ~49.44 mln shares), GM (to ~22 mln from ~40 mln), CVX (to ~123.12 mln from ~132.41 mln), GL (to ~2.52 mln from ~6.35 mln), CE (to ~5.36 mln from ~8.82 mln)

=Bank of America (BAC) reported earnings on Wed 15 Jan 20 (b/o)

Bank of America beats by $0.05, reports revs in-line

Reports Q4 (Dec) earnings of $0.74 per share, $0.05 better than the S&P Capital IQ Consensus of $0.69; revenues fell 1.8% year/year to $22.3 bln vs the $22.3 bln S&P Capital IQ Consensus.

Average loans and leases grew $20 bln, or 6%, to $377 bln, driven by broad-based growth across corporate and commercial clients.

Efficiency ratio 59%.

Earnings this week : Jan 13 - 17, 20 (wk 3)

Monday (Jan 13)

• Morning: SJR

Tuesday (Jan 14)

• Morning: APHA C DAL FRC INFO JPM WFC WIT
• Afternoon: OGI WAFD

Wednesday (Jan 15)

• Morning: BAC BLK GS PNC USB UNH
• Afternoon: AA EGBN HWC KMI

Thursday (Jan 16)

• Morning: BK HOMB IIIN MS PPG TSM WNS
• Afternoon: OZK BEDU CSX PBCT PRGS

Friday (Jan 17)

• Morning: CFG FAST FHN JBHT KSU RF SLB STT

Notable earnings reports:

• JPMorgan (JPM), Wells Fargo (NYSE:WFC), Delta Air Lines (NYSE:DAL), Citigroup (NYSE:C), IHS Markit (NYSE:INFO) and Aphria (APHA) on January 14; 
• Bank of America (NYSE:BAC), Goldman Sachs (GS) United Healthcare (UNH), BlackRock (NYSE:BLK), U.S. Bancorp (NYSE:USB), Alcoa (NYSE:AA) and PNC Financial (NYSE:PNC) on January 15; 
• Morgan Stanley (NYSE:MS), Taiwan Semiconductor (NYSE:TSM) and CSX (NASDAQ:CSX) on January 16; Fastenal (NASDAQ:FAST), J.B. Hunt Transport (NASDAQ:JBHT), Kansas City Southern (NYSE:KSU), Schlumberger (NYSE:SLB) and State Street (NYSE:STT).

-=Bank Of America (BAC) expands commission-free trading for Preferred Reward members

Bank of America said Monday its Merrill Edge Self-Directed platform will expands its offer of zero-dollar online trading, offering unlimited commission-free stock, exchange-traded fund and options trading. About 87% of trades on the platform were already commission-free through benefits offered to members of the company's Preferred Rewards program, the company said in a statement.


The news comes after Charles Schwab (SCHW), Fidelity Investments and TD Ameritrade had eliminated commissions on online trading earlier this month to lure clients amid increased competition from several fintech startups that offer quick and cheaper services.


In addition to moving to zero-dollar trades for all members of the program, Merrill Edge Self-Directed clients not enrolled in Preferred Rewards will now receive flat-rate pricing of $2.95 for online stock and ETF trades, down from $6.95, with no trade or balance minimums.

=Bank of America (BAC) reported earnings on Wed 16 Oct 2019 (b/o)

Bank of America beats by $0.07, reports revs in-line

Reports Q3 (Sep) earnings of $0.75 per share, excluding non-recurring items, $0.07 better than the S&P Capital IQ Consensus of $0.68; revenues rose 0.3% year/year to $22.95 bln vs the $22.73 bln S&P Capital IQ Consensus.

Net interest yield (FTE basis) of 2.41%, declined 4 bps.

"Our teammates delivered another strong quarter of earnings and returns for shareholders. In a moderately growing economy, we focused on driving those things that are controllable. We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities, all while core expenses are flat. Our client activity, the expansion of our client base, and our ability to gain market share across most of our businesses in the quarter, all reflect responsible growth."

Some notes on peer Q3 performance-

• BAC posted steady results but JPM remains the top earnings for Q3.
• RoEs have been pretty steady in the 9-11% with JPM above the fray at 15%.
• JPM dominating on revenue growth as well. Best in class for net income.
• C and GS still remain the cheapest valuation on a Book basis.
• BAC tops on equity performance, JPM on FICC.
• Loan growth led by BAC and C.

3Q19 Results	MS	JPM	BAC	WFC	C	GS
RoE		15.0%	11.0%	9.0%	10.4%	9.0%
RoTCE		18.0%	15.5%	10.7%	12.2%	9.5%
Rev Growth (Y/Y)		8.0%	0.0%	0.0%	1.0%	-6.0%
Net Income Growth		8.0%	-19.0%	-7.0%	6.0%	-26.0%
TBVPS/Price	1.09x	1.95x	1.57x	1.41x	1.00x	N/A
BVPS/Price	0.93x	1.57x	1.12x	1.20x	1.15x	0.92x
Trading Revs (Bln)		$6.07	$3.20	N/A	$4.50	$3.29
Equity Trading (Bln)		$1.52	$1.14	N/A	$0.76	$1.88
Equity (Y/Y)		-5%	12%	N/A	-4%	5%
FICC Trading (Bln)		$3.55	$2.07	N/A	$3.20	$1.41
FICC (Y/Y)		25%	0%	N/A	0%	8%
3-month Return	-3%	1%	0%	9%	-3%	-4%
Forward P/E		11.1x	10.1x	10.8x	8.3x	8.2x
NIM		2.41%	2.41%	2.66%	2.56%	N/A
Loan Growth Y/Y		0%	4%	1%	4%	N/A

Earnings season: Money Center Q2 Recap

The table below provides a recap of the Q2 earnings season for the six major money center banks. The Book Value per Share, Tangible Book Value per Share, and three month change has been updated to reflect today's prices.

2Q19 Results	MS	JPM	BAC	WFC	C	GS
RoE	12.1%	16.0%	11.6%	13.2%	10.1%	11.1%
RoTCE	13.8%	20.0%	16.2%	15.7%	11.9%	11.7%
Rev Growth (Y/Y)	-3.4%	4.0%	2.0%	0.0%	2.0%	-2.0%
Net Income Growth	-1.0%	16.0%	8.0%	-3.0%	7.0%	-6.0%
TBVPS/Price	1.09x	1.95x	1.53x	1.45x	0.96x	0.99x
BVPS/Price	0.93x	1.57x	1.15x	1.10x	1.12x	1.04x
Trading Revs (Bln)	$3.30	$6.39	$3.20	N/A	$4.67	$3.48
Equity Trading (Bln)	$2.13	$1.73	$1.10	N/A	$0.79	$2.01
Equity (Y/Y)	-14%	-12%	-13%	N/A	-9%	6%
FICC Trading (Bln)	$1.39	$3.69	$2.10	N/A	$3.32	$1.47
FICC (Y/Y)	-18%	-3%	-8%	N/A	8%	-13%
3-month Return	-3%	1%	0%	9%	-3%	-4%
Forward P/E	8.4X	10.8x	9.5x	9.5x	8.5x	9.1x
NIM	N/A	2.49%	2.44%	2.82%	2.67%	N/A
Loan Growth Y/Y	N/A	2%	4%	1%	3%	10%

Earnings this week : Oct 14 - 18, 19 (wk 42)

Monday (October 14)

• None

COLUMBUS DAY: In honor of the holiday, US bond markets and the Federal Reserve Bank will be closed on Monday, October 14, 2019. Stock, options, and futures markets will be open.

Tuesday (Oct 15)

• Morning: APHA BLK C FRC GS JNJ JPM OMC PLD SCHW UNH WFC WIT
• Afternoon: HWC JBHT PNFP SNBR UAL

Wednesday (Oct 16)

• Morning: ABT  ALLY ASML BAC BK CBSH CMA FHN PGR PNC USB
• Afternoon: AA CATY CCI CCK CNS CSX EGBN IBM KMI LLNW NFLX SLG STLD TBK TCBI UMPQ URI WTFC

Thursday (Oct 17)

• Morning: BBT BMI DOV ERIC EWBC FNB GPC GTLS HOMB HON HTLD IIIN KEY MS MTB PM POOL PPG SASR SNA SON STI TSM TXT UNP WNS
• Afternoon: BDN ETFC EXPO FFBC ISRG MRTN OZK PBCT TEAM WAL WDFC

Friday (Oct 18) 

• Morning: ABCB AXP CFG GNTX IBKC KO KSU MAN SLB STT SXT SYF

Notable earnings reports:

• JPMorgan (JPM), Johnson & Johnson (NYSE:JNJ), UnitedHealth Group (NYSE:UNH), Goldman Sachs (NYSE:GS), Wells Fargo (WFC), Citigroup (C), United Continental (NASDAQ:UAL), Charles Schwab (NYSE:SCHW) and BlackRock (NYSE:BLK) on October 15; 
• Netflix (NASDAQ:NFLX), IBM (NYSE:IBM), Bank of America (NYSE:BAC), Kinder Morgan (NYSE:KMI) and Abbott Laboratories (NYSE:ABT) on October 16; 
• Philip Morris International (NYSE:PM), Morgan Stanley (NYSE:MS) and Union Pacific (NYSE:UNP) on October 17; Coca-Cola (NYSE:KO), American Express (NYSE:AXP), State Street (NYSE:STT) and Gentex (NASDAQ:GNTX) on October 18.

-=Bank of America (BAC) reported earnings on Tue 16 Apr 2019 (b/o)

Bank of America beats by $0.04, misses on revs

• Reports Q1 (Mar) earnings of $0.70 per share, $0.04 better than the S&P Capital IQ Consensus of $0.66; revenues fell 0.4% year/year to $23 bln vs the $23.24 bln S&P Capital IQ Consensus.
• Average loans and leases rose 4% to $897 bln.
• Net interest yield (FTE basis) of 2.51%, up 9 bps.

Earnings this week : April 15 - 19, 2019 (wk 16)

Monday (April 15)

• Morning: APHA C GS MTB
• Afternoon: JBHT PNFP WTFC

Tuesday (April 16)

• Morning: BAC   BLK CMA FHN JNJ OMC PGR PLD UNH WIT
• Afternoon: CSX FULT HWC HOPE IBM IBKR MRTN MLNX NFLX UAL WSBC

Wednesday (April 17)

• Morning: ABT ASML BMI BK ERIC KSU MS PNR PEP POL TXT USB
• Afternoon: ADTN AA TEAM BXS OZK CATY CNS CCK CCI ETFC EGBN KMI LVS LLNW PIR PLXS SLM SLG SNBR TCBI TMK TBK UMPQ URI

Thursday (April 18)

• Morning: ALLY AXP BBT BX GTLS CHKP CFG DHR DOV EWBC GPC HTLD HOMB HON IIIN KEY MAN PM POOL BPOP PPG RF RCI SASR SLB SKX SNA SON STI SYF TSM TRV UNP WBS
• Afternoon: EXPO ISRG PBCT

Friday (April 17) : Bond and equity markets closed for Good Friday

Other reports this week:

• Monday: April Empire State Manufacturing Index (prior 3.7) at 8:30 ET and February Net Long-Term TIC flows (prior -$7.20 bln) at 16:00 ET
• Tuesday: March Industrial Production (prior 0.1%) and Capacity Utilization (prior 78.2%) at 9:15 ET and April NAHB Housing Market Index (prior 62) at 10:00 ET
• Wednesday: Weekly MBA Mortgage Index (prior -5.6%) at 7:00 ET; February Trade Balance (prior -$51.10 bln) at 8:30 ET; February Wholesale Inventories (prior 1.4%) at 10:00 ET; Weekly crude oil inventories (prior 7.0 mln) at 10:30 ET; and April Fed Beige Book at 14:00 ET
• Thursday: March Retail Sales (prior -0.2%), Retail Sales ex-auto (prior -0.4%), Initial Claims (prior 196,000), Continuing Claims (prior 1.713 mln), and Philadelphia Fed Survey (prior 13.7) at 8:30 ET; February Business Inventories (prior 0.8%) and March Leading Indicators (prior 0.2%) at 10:00 ET; and weekly natural gas inventories (prior +25 bcf) at 10:30 ET

Implied moves for earnings this week:

• $NFLX 8.1%
• $BAC 4.2%
• $C 4.1%
• $GS 4.7%
• $JNJ 3.1%
• $IBM 5.3%
• $CSX 4.2%
• $UAL 5.1%
• $ABT 3.6%
• $TEAM 9.4%
• $MS 4.5%
• $AA 7.4%
• $PEP 2.3%
• $ISRG 3.5%
• $UNH 4.7%
• $BLK 3.1%
• $LVS 4.3%

=Bank of America (BAC) reported earnings on Wed 16 Jan 2019 (b/o)

Bank of America beats by $0.07, beats on revs

• Reports Q4 (Dec) earnings of $0.70 per share, $0.07 better than the S&P Capital IQ Consensus of $0.63; revenues rose 10.7% year/year to $22.89 bln vs the $22.37 bln S&P Capital IQ Consensus.
• Net interest income of $12.3B ($12.5B FTE) --  Increased $0.8B from 4Q17, reflecting the benefits from higher interest rates as well as loan and deposit growth, modestly offset by loan spread compression and higher funding costs in Global Markets
• Net interest yield (FTE basis) of 2.48%, up 9 bps
• Provision for credit losses decreased $96 million to $905 million; Net charge-off ratio declined to 0.39%
• Efficiency ratio of 58% improved 432 bps

Earnings this week : Jan 14 - 18, 19 (wk 3)

Corporate profits will take center stage when fourth quarter earnings season kicks off this week.

The SEC allows companies a larger window to file their annual reports relative to quarterly updates. As a result, we will see preannouncements throughout January and fourth quarter earnings season will drag on into March.

This week, the big banks will dominant the corporate earnings newsflow.

Monday (Jan 14)    

• Morning: C SJR

Tuesday (Jan 15)

• Morning: DAL FRC INFO JPM SNV UNH WFC
• Afternoon: FULT PNFP UAL

Wednesday (Jan 16)

• Morning: BAC BLK BK CMA GS PNC SCHW USB WAFD
• Afternoon: AA CSX EGBN FUL HWC KMI PLXS

Thursday (Jan 17)

• Morning: BBT CBSH FAST HOMB IIIN KEY MS MTB MTG PPG SASR SBNY TSM WNS
• Afternoon: AXP JBHT NFLX OZK PBCT PRGS TEAM

Friday (Jan 18)

• Morning: CFG FHN KSU RF SLB STI STT VFC

-=Bank of America (BAC) reported earnings on Mon 15 Oct 2018 (b/o)

BAC Bank of America beats by $0.04, reports revs in-line

• Reports Q3 (Sep) earnings of $0.66 per share, excluding non-recurring items, $0.04 better than the S&P Capital IQ Consensus of $0.62; revenues rose 3.2% year/year to $22.78 bln vs the $22.63 bln S&P Capital IQ Consensus.
• Provision for credit losses decreased $118 million to $716 million.
• Average loan and lease balances in business segments rose $29 billion, or 3%, to $871 billion.
• Co reported Q3 efficiency ratio of 57% vs 59% in Q2.
• NII increased $64 million, or 2%, primarily due to the benefit of higher interest rates and growth in deposits.

Earnings this week : October 15 - 19, 2018 (wk 42)

Earnings confirmed to report this week

Monday (Oct 15)

• Morning: BAC  
• Afternoon: JBHT

Tuesday (Oct 16)

• Morning: BLK  CMA FHN DPZ GS  GWW JNJ MS OMC PGR PLD  UNH
• Afternoon:  ADTN CREE CSX FULT HCSG HOPE HWC IBKR IBM  LRCX LTXB MRTN NFLX  PNFP SONC TACO  UAL UFPI

Wednesday (Oct 17)

• Morning: ABT ASML BMI MTB MTG NTRS SVU UNF USB WGO
• Afternoon:  AA BDN BXS CATY CCI CCK CNS EGBN KALU KMI SLG STLD TBK TCBI UMPQ URI WTFC

Thursday (Oct 18)

• Morning:  ADS BBT BK BX DHR DOV ERIC EWBC GPC GTLS HOMB IIIN KEY LNN MDSO NUE NVR NVS PM POOL PPG SAP SASR SBNY SNA SON TRV TSM TTS TXT WBC WBS
• Afternoon: AXP CP CE ETFC EXPO ISRG PYPL SKX WDFC WERN 

Friday (Oct 18)

• Morning: CLF HON IPG KSU MAN MINI PG RCI VFC

Thur Oct 18 a/h

-=Bank of America (BAC) reported earnings on Wed 17 Jan 2017 (b/o)

Bank of America beats by $0.02, misses on revs 

• Reports Q4 (Dec) earnings of $0.47 per share, $0.02 better than the Capital IQ Consensus of $0.45; revenues rose 3.5% year/year to $20.69 bln vs the $21.61 bln Capital IQ Consensus.
• Net income exludes a charge of $2.9 billion, or $0.27 per diluted share, related to the Tax Cuts and Jobs.
• Net interest income (NII) increased $1.2 billion, or 11%, to $11.5 billion, reflecting benefits from higher interest rates, as well as loan and deposit growth.
• Net charge-offs rose to $1.2 billion from $880 million, primarily driven by a single-name non-U.S. commercial charge-off totaling $292 million;Net charge-off ratio 0.53% compared to 0.39% in prior year period;
• Provision for credit losses rose to $1.0 billion from $774 million;
• Loans up 9%; deposits up 8%.
• Sales and trading revenue of $2.5 billion, including negative net debit valuation adjustment (DVA) of $118 million; Excluding net DVA, sales and trading revenue down 9% vs. strong Q4-16
  • FICC down 13% to $1.71 bln, expectations were for a decline of 15% or approx $1.65 bln ;
  • Equities were flat y/y.
• Efficiency ratio improved to 50% from 53%, despite continued investment in primary sales professionals and financial center builds/renovations.
• Net Interest Yield 2.39%, up 16 bps y/y.

=Bank of America (BAC) reported earnings on Thur 14 Apr 2016 (b/o)

Bank of America reports EPS in-line, misses on revs  :

• Reports Q1 (Mar) earnings of $0.21 per share, in-line with the Capital IQ Consensus of $0.21; revenues fell 8.0% year/year to $19.7 bln vs the $20.32 bln Capital IQ Consensus.
  • Total Loans $901 bln compared to $897 mln in Q4.
  • Tangible Common Equity Ratio 7.9%
  • Tangible BVPS $16.17; BVPS $23.12
  • Return on average assets 0.50%; return on average common equity 3.8%; return on average tangible common equity 5.4%
• Credit Costs
  • Provision for credit losses of $997 million, compared to $765 million; net charge-offs declined to $1.1 billion from $1.2 billion. Provision for credit losses increased to $997 million, due to increased reserves in the commercial portfolio due to energy sector exposure Net reserve release was $71 million, compared to $429 million, as reserve releases in consumer were mostly offset by increased commercial reserves.
• Global Markets
  • Revenue down $240 million to $4.0 billion; excluding net DVA, revenue decreased $795 million to $3.8 billion, driven by lower sales and trading results and lower investment banking fees; Sales and trading revenue down $48 million to $3.4 billion.
  • FICC decreased 17%, reflecting a weak trading environment for credit-related products and lower revenues in currencies compared with a strong year-ago quarter, partially offset by an improved performance in rates and client financing
  • Equities down 11%, reflecting a weaker trading performance in a challenging market environment.
  • The net charge-off ratio decreased to 0.48% from 0.56%; excluding the items noted above, the net charge-off ratio was 0.46% in Q1-16, down from 0.47%
• Energy Exposure
  • Utilized energy exposure of $21.8 billion decreased $0.3 billion from Q1-15
  • Higher risk subsectors of Exploration & Production (E&P) and Oil Field Services (OFS) decreased $0.6 billion from Q4-15 and $0.3 billion from Q1-15 to $7.7 billion, representing less than 1% of total corporation loans
  • Energy reserves increased $525 million from Q4-15 to $1.0 billion, primarily driven by increased allowance coverage for the higher risk subsectors (E&P and OFS)

=Bank of America (BAC) reported 4Q earnings on Tue 19 Jan 2016 (before open)

** charts before earnings **



** charts after earnings **



Bank of America declined 1.5% despite beating earnings estimates on in-line revenue.

 Bank of America beats by $0.01, reports revs in-line :

• Reports Q4 (Dec) earnings of $0.28 per share, $0.01 better than the Capital IQ Consensus of $0.27; revenues rose 105669.2% year/year to $19.8 bln vs the $19.89 bln Capital IQ Consensus. 
• Net interest income up 2% to $10.0B;
• Provision for credit losses $0.8B, compared to $0.8B in Q3-15 and $0.2B in Q4-14;
• Return on average assets 0.61%;
• return on average common equity 5.1%;
• return on average tangible common equity 7.3%;
• Tangible book value per share increased 8% to $15.62; book value per share increased 6% to $22.54;
• Noninterest expense down 16% to $1.1B; noninterest expense, excluding litigation, down 28% to $795MM.

Investment Bank

• Sales and trading revenue up $0.7B to $2.4B; Excluding net DVA, sales and trading revenue up 11% to $2.6B;
• FICC increased 20%, reflecting improvement across most products, notably in rates and credit-related products
• Equities down 3%, due to lower levels of client activity.

Credit

• Credit quality remained strong, improving across all consumer portfolios, while the energy sector of the commercial portfolio experienced elevated charge-offs and criticized levels;
• Net charge-offs were $1.1B, compared to $0.9B;
• Excluding losses associated with the August 2014 DoJ settlement, collateral valuation adjustments, and nonperforming loan sale and other recoveries, net charge-offs were $1B in both Q4-15 and the year-ago quarter
• The net charge-off ratio increased to 0.51% from 0.40%.
• Excluding the items noted above, the net charge-off ratio was 0.45% in Q4-15, compared to 0.47%
• Provision for credit losses of $810MM was relatively stable compared to the third quarter of 2015 and up from the year-ago quarter due to lower consumer recoveries, a slower pace of improvement in the consumer portfolio, and higher reserve builds in the commercial portfolio, due to loan growth and energy sector exposure
• Net reserve release was $334MM, compared to $660MM; after adjusting for certain items reserved for in prior quarters, the net reserve release was $195MM, compared to $509MM

Bank of America (BAC) reports on Wed 18 July 2012

** charts before earnings **

** weekly **

** charts after earnings ** 

--Bank of America reports profit of $2.5 billion on $22 billion in revenue

--Improving trends in mortgage banking drive results; delinquencies, credit loss provisions decline

--Weak macro-economy and markets weigh on investment banking and trading