Bank of America Corp (NYSE:BAC) recently reported a transaction involving the sale of common stock in Neuberger Berman Municipal Fund Inc. (NYSE:NBH). On November 18, the company sold 800 shares at an average price of $10.6501 per share, bringing the total value of the sale to approximately $8,520. Following this transaction, Bank of America no longer holds any shares in the fund.
In addition to the sale, Bank of America acquired 800 shares of the same stock on the same day at a price of $10.66 per share, totaling $8,528. The transactions were executed by Bank of America and its subsidiary, Merrill Lynch, Pierce, Fenner & Smith Inc., both of which are considered ten percent owners of the fund. The companies have stated that they are analyzing additional trading activity and may file another report soon.
InvestingPro Insights
While Bank of America's recent transactions in Neuberger Berman Municipal Fund Inc. (NYSE:NBH) reflect portfolio adjustments, it's worth examining NBH's financial health and market performance. According to InvestingPro data, NBH has demonstrated strong revenue growth, with a 29.67% increase in the last twelve months as of Q2 2024, and an even more impressive 58.91% quarterly growth in the same period.
The fund's financial stability is underscored by an InvestingPro Tip noting that its liquid assets exceed short-term obligations, which is particularly relevant for investors considering the fund's long-term prospects. Additionally, NBH has maintained dividend payments for 23 consecutive years, a testament to its commitment to shareholder returns. This is reflected in its current dividend yield of 6.09%, which may be attractive to income-focused investors.
Despite these positive indicators, another InvestingPro Tip suggests that the stock's valuation implies a poor free cash flow yield. This could explain Bank of America's decision to adjust its position in the fund. Investors should weigh these factors carefully when considering NBH as part of their portfolio.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on NBH, which could provide valuable context for understanding Bank of America's trading activity in the stock.
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