Bank of America (NYSE:BAC) Shares Down 1.7% – What’s Next?

Bank of America Corporation (NYSE:BAC)’s share price was down 1.7% on Monday. The stock traded as low as $50.20 and last traded at $50.3750. Approximately 42,364,122 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 37,799,344 shares. The stock had previously closed at $51.23.

More Bank of America News

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

• Positive Sentiment: Some analysts view the sell-off as an opportunity, arguing that Bank of America’s underlying profitability and strong balance sheet remain intact. Morgan Stanley reportedly sees the stock as de-risked and estimates meaningful upside if management executes. Bank of America Stock Is a Buy after the Recent Sell-Off Bank of America’s bad news may not be what investors think
• Neutral Sentiment: Bank of America analysts continue to expect a Federal Reserve rate increase in October. Higher rates could support bank margins, but the outlook also raises concerns about economic growth and credit quality. Why BofA still sees an October Fed rate hike
• Neutral Sentiment: Bank of America disclosed that its indirect stake in Turkish venture investment firm ICU Girisim Sermayesi reached 4.1%, a relatively small portfolio development with limited near-term effect on BAC earnings. Bank of America lifts indirect stake in ICU
• Negative Sentiment: A $1.2 billion regulatory penalty tied to anti-money-laundering violations is weighing on sentiment, highlighting compliance costs and potential reputational damage. CEO Brian Moynihan said the bank is addressing the problem, but investors remain focused on execution.
• Negative Sentiment: Freedom Broker lowered its BAC price target to $63 from $70, while technical analysis warned that the post-earnings decline below a key trend line could signal a deeper correction. Bank of America price target lowered Bank of America Stock Breaks Key Trend Line
• Negative Sentiment: Several law firms announced investigations or class actions alleging securities-law violations and misleading disclosures related to the bank’s compliance issues and stock decline. These claims could increase legal costs and prolong investor uncertainty, although no wrongdoing has been established. Bank of America securities class action Hagens Berman investigation

Analysts Set New Price Targets

A number of research firms have issued reports on BAC. HSBC began coverage on shares of Bank of America in a research report on Monday, September 28th. They issued a “buy” rating and a $65.00 target price for the company. Rothschild & Co Redburn set a $72.00 price target on shares of Bank of America in a report on Tuesday, October 6th. Weiss Ratings restated a “buy (b)” rating on shares of Bank of America in a report on Tuesday, July 21st. Robert W. Baird raised shares of Bank of America from a “neutral” rating to an “outperform” rating and set a $62.00 price target on the stock in a research note on Thursday. Finally, Wells Fargo & Company dropped their price target on shares of Bank of America from $69.00 to $64.00 and set an “overweight” rating on the stock in a research note on Thursday. Twenty investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $62.52.

Bank of America Price Performance

The stock has a 50 day moving average price of $59.05 and a two-hundred day moving average price of $56.75. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.82 and a current ratio of 0.82. The company has a market capitalization of $352.26 billion, a PE ratio of 11.97, a P/E/G ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC) last announced its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.10 by ($0.02). The firm had revenue of $29.96 billion for the quarter, compared to analyst estimates of $30.58 billion. Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The firm’s quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.06 earnings per share. Equities analysts forecast that Bank of America Corporation will post 4.54 earnings per share for the current year.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, September 4th. This is a boost from Bank of America’s previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a yield of 2.5%. Bank of America’s payout ratio is 30.40%.

Institutional Trading of Bank of America

Institutional investors have recently added to or reduced their stakes in the business. Total Clarity Wealth Management Inc. grew its holdings in shares of Bank of America by 3.6% in the 2nd quarter. Total Clarity Wealth Management Inc. now owns 4,889 shares of the financial services provider’s stock valued at $279,000 after buying an additional 168 shares during the period. Orca Wealth Management LLC raised its stake in Bank of America by 0.5% during the 2nd quarter. Orca Wealth Management LLC now owns 35,087 shares of the financial services provider’s stock worth $1,999,000 after buying an additional 179 shares during the period. Financial Consulate Inc. raised its stake in Bank of America by 4.0% during the 2nd quarter. Financial Consulate Inc. now owns 4,741 shares of the financial services provider’s stock worth $270,000 after buying an additional 181 shares during the period. Bedel Financial Consulting Inc. raised its stake in Bank of America by 1.1% during the 2nd quarter. Bedel Financial Consulting Inc. now owns 16,456 shares of the financial services provider’s stock worth $938,000 after buying an additional 184 shares during the period. Finally, GatePass Capital LLC lifted its holdings in Bank of America by 3.6% during the first quarter. GatePass Capital LLC now owns 5,451 shares of the financial services provider’s stock worth $266,000 after acquiring an additional 190 shares in the last quarter. 70.71% of the stock is currently owned by institutional investors and hedge funds.

About Bank of America

Bank of America Corporation (NYSE: BAC) is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company’s consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.