In mid-March 2023, John Curtis, the U.S. representative for Utah's 3rd congressional district, made the decision to sell shares of Bank of America (BAC:US) and First Republic Bank (FRC:US) amidst the ongoing banking turmoil. According to his regulatory disclosure on Capitol Trades, the trades were executed within the range of $1,000 to $15,000.
Analyzing the performance of BAC and FRC stocks since Mr. Curtis laid them off, using TipRanks' data, it appeared unlikely that the politician could have made any profits from these sales. BAC stock experienced a loss of nearly 2.3% since Curtis sold the shares and dropped close to 15% year-to-date, mainly due to the banking crisis.
TipRanks' analysis revealed that BAC stock had a Moderate Buy consensus rating based on 7 Buy ratings, 6 Hold ratings, and 2 Sell ratings at the end of March. The average price target for Bank of America was $38.80, indicating a potential upside of 37.1% from the current levels back then. It is worth noting that 50 corporate insiders had sold BAC stock worth nearly $71.1 million, which was seen as a very negative signal. In contrast, retail investors showed a very positive signal by significantly increasing their BAC holdings in the month of March 2023. Hedge funds, however, maintained a neutral stance, reducing their BAC holdings by 336,900 shares in the previous quarter. With a neutral smart score of five, BAC stock was expected to perform in line with market expectations, according to ten technical and TipRanks' unique parameters.
As for First Republic Bank, the institution faced scrutiny during the banking stress. FRC witnessed a deposit flight and had to secure a $30 billion infusion from ten major U.S. banks to bolster its liquidity. Additionally, the bank had government support in case of further financial deterioration.
Interestingly, both retail investors and hedge funds displayed a very positive signal for FRC stock. In March, TipRanks' stock investors increased their exposure to FRC stock by an impressive 783.6%, while 13 hedge funds acquired nearly 2.1 million shares of FRC in the previous quarter.
Both retail investors and hedge funds showed a very positive signal for FRC stock. Retail investors significantly increased their exposure to FRC stock in March, while 13 hedge funds purchased around 2.1 million shares in the last quarter. Analysts had a moderate buy consensus rating for First Republic Bank, with seven Buy ratings, ten Hold ratings, and one Sell rating. The average price forecast for FRC was $130.50, suggesting a potential upside of 853.3%. Taking these factors into account, FRC stock had an outperform smart score of nine.
In conclusion, Congressman Curtis' stock trades gained attention, given his track record of successful investments. Investors looking for guidance may consider following his stock picks, but it is crucial to conduct thorough research and analysis.