Bank of America (NYSE:BAC) Shares Down 3.9% – What’s Next?

Bank of America Corporation (NYSE:BAC)’s share price traded down 3.9% on Wednesday . The company traded as low as $51.66 and last traded at $52.4180. 84,087,068 shares were traded during trading, an increase of 108% from the average session volume of 40,402,836 shares. The stock had previously closed at $54.54.

Bank of America News Summary

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Quarterly beat — BAC posted $0.98 EPS and revenue above estimates, with net income up year‑over‑year and improved efficiency, showing the quarter was fundamentally strong. Bank of America Reports Fourth Quarter 2025 Financial Results
• Positive Sentiment: Technology & AI are lowering costs and boosting operating leverage — management highlighted Erica, automation and AI-driven digital engagement as contributors to margin improvement and scalable revenue. Erica, AI and Digital Drive Operating Leverage at Bank of America
• Neutral Sentiment: Trading & NII helped the quarter — equities trading and net interest income were notable upside contributors, supporting near‑term earnings power if markets and loan margins hold. BAC’s Q4 Earnings Top as Trading & NII Shine
• Neutral Sentiment: Management tone — CEO Brian Moynihan called for further economic growth in 2026 but flagged risks; tone is constructive but not overly bullish. Bank of America CEO Moynihan Predicts Economic Growth Despite ‘Risks’ in 2026
• Negative Sentiment: Guidance / Investment banking nuance weighed — some coverage flagged guidance and weaker IB commentary as reasons the quarter underwhelmed sentiment despite beats, prompting profit-taking. Bank of America reports fourth quarter earnings beat
• Negative Sentiment: Sector and policy overhangs — bank stocks broadly sold off after earnings due to high valuations, macro headlines (PPI/market weakness) and political talk of capping credit‑card rates, which could compress card revenue if enacted or even create persistent uncertainty. Bank Stocks Get Punished After Earnings—Is Valuation the Real Problem?

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Phillip Securities upped their price target on shares of Bank of America from $50.00 to $56.00 in a report on Tuesday, October 21st. Wall Street Zen lowered shares of Bank of America from a “hold” rating to a “sell” rating in a research report on Monday, January 5th. Erste Group Bank raised shares of Bank of America from a “hold” rating to a “buy” rating in a research report on Friday, October 3rd. Wells Fargo & Company boosted their target price on Bank of America from $62.00 to $65.00 and gave the company an “overweight” rating in a research note on Monday, January 5th. Finally, Cowen reissued a “buy” rating on shares of Bank of America in a research report on Wednesday, January 7th. One analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $59.91.

Bank of America Stock Performance

The stock has a market cap of $382.78 billion, a PE ratio of 14.28 and a beta of 1.29. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.79 and a current ratio of 0.79. The business’s fifty day moving average price is $54.19 and its 200-day moving average price is $51.14.

Bank of America (NYSE:BAC) last issued its quarterly earnings results on Wednesday, January 14th. The financial services provider reported $0.98 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.02. The business had revenue of $28.53 billion for the quarter, compared to analysts’ expectations of $27.73 billion. Bank of America had a net margin of 15.70% and a return on equity of 10.76%. The company’s revenue was up 12.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.82 EPS. As a group, equities research analysts forecast that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 26th. Stockholders of record on Friday, December 5th were given a dividend of $0.28 per share. The ex-dividend date was Friday, December 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.1%. Bank of America’s dividend payout ratio (DPR) is presently 30.52%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Quaker Wealth Management LLC increased its position in shares of Bank of America by 246.5% during the second quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 880 shares during the period. Wiser Advisor Group LLC bought a new position in shares of Bank of America in the 3rd quarter worth $27,000. RMG Wealth Management LLC purchased a new stake in shares of Bank of America during the second quarter valued at about $28,000. Steph & Co. grew its holdings in Bank of America by 224.3% in the third quarter. Steph & Co. now owns 548 shares of the financial services provider’s stock worth $28,000 after purchasing an additional 379 shares during the last quarter. Finally, CGC Financial Services LLC boosted its holdings in Bank of America by 585.4% in the second quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider’s stock worth $29,000 after acquiring an additional 521 shares in the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

About Bank of America

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.