Erste Group Bank Expects Weaker Earnings for Bank of America

Bank of America Corporation (NYSE:BAC) – Equities researchers at Erste Group Bank cut their FY2026 EPS estimates for Bank of America in a report released on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the financial services provider will post earnings of $4.35 per share for the year, down from their prior estimate of $4.55. The consensus estimate for Bank of America’s current full-year earnings is $4.54 per share. Erste Group Bank also issued estimates for Bank of America’s FY2027 earnings at $5.15 EPS.

A number of other brokerages have also weighed in on BAC. Evercore set a $62.00 target price on Bank of America in a research note on Thursday, October 1st. UBS Group reduced their price target on shares of Bank of America from $70.00 to $67.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Oppenheimer lowered shares of Bank of America from an “outperform” rating to a “market perform” rating in a report on Tuesday, June 30th. Barclays lowered their price objective on shares of Bank of America from $72.00 to $68.00 and set an “overweight” rating for the company in a research report on Thursday, October 15th. Finally, TD Cowen dropped their target price on shares of Bank of America from $60.00 to $56.00 and set a “hold” rating for the company in a research note on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Bank of America presently has an average rating of “Moderate Buy” and a consensus target price of $62.82.

Bank of America Price Performance

Bank of America stock opened at $51.03 on Friday. 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 firm has a market cap of $356.85 billion, a P/E ratio of 12.12, a P/E/G ratio of 0.88 and a beta of 1.21. The business’s fifty day moving average is $57.97 and its two-hundred day moving average is $56.80. Bank of America has a 52 week low of $46.12 and a 52 week high of $65.22.

Bank of America (NYSE:BAC) last released its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing analysts’ consensus estimates of $1.10 by ($0.02). Bank of America had a return on equity of 12.15% and a net margin of 16.80%. The business had revenue of $29.96 billion for the quarter, compared to the consensus estimate of $30.58 billion. During the same quarter last year, the company earned $1.06 earnings per share. The firm’s revenue was up 3.2% on a year-over-year basis.

Institutional Investors Weigh In On Bank of America

Several institutional investors have recently modified their holdings of BAC. Legal & General Group Plc bought a new position in Bank of America in the second quarter valued at approximately $2,571,060,000. Amundi raised its position in shares of Bank of America by 12.5% during the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider’s stock valued at $2,066,274,000 after acquiring an additional 4,721,969 shares during the last quarter. Deutsche Bank AG acquired a new position in shares of Bank of America in the 2nd quarter valued at $2,359,172,000. Bank of New York Mellon Corp acquired a new position in shares of Bank of America in the 2nd quarter valued at $2,313,953,000. Finally, Dimensional Fund Advisors LP boosted its position in shares of Bank of America by 1.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider’s stock worth $1,517,599,000 after purchasing an additional 561,413 shares during the last quarter. Institutional investors and hedge funds own 70.71% of the company’s stock.

Bank of America Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 24th. Shareholders of record on Friday, December 4th will be given a dividend of $0.32 per share. The ex-dividend date is Friday, December 4th. This represents a $1.28 dividend on an annualized basis and a yield of 2.5%. Bank of America’s dividend payout ratio is presently 30.40%.

Trending Headlines about Bank of America

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

• Positive Sentiment: Brokerages maintain an average BAC price target of $62.82, suggesting meaningful potential upside from current levels if the bank’s earnings and regulatory issues stabilize. Bank of America Corporation Stock Has Average Price Target of $62.82 According to Brokerages
• Positive Sentiment: Bank of America declared a quarterly dividend of $0.32 per share, payable December 24 to shareholders of record December 4. The $1.28 annualized payout represents a yield of approximately 2.5% and reinforces the bank’s shareholder-return appeal. Bank of America Declares Fourth Quarter 2026 Stock Dividends
• Neutral Sentiment: The board appointed Jim Fitterling and Bill Thomas as directors, expanding the board from 12 to 14 members. The appointments could add industrial and operating expertise, but their immediate financial impact is unclear. Bank of America Names Jim Fitterling and Bill Thomas to Board of Directors
• Negative Sentiment: Multiple law firms publicized a securities-fraud class action against Bank of America and certain executives. The case covers investors who purchased shares from August 1, 2025, through October 13, 2026, with a December 15, 2026 lead-plaintiff deadline. The allegations remain unproven, but the volume of notices adds reputational, legal-cost and potential-liability concerns. Bank of America Securities Fraud Class Action Deadline
• Negative Sentiment: Coverage also links the lawsuit to a reported $1.2 billion Treasury penalty involving anti-money-laundering violations. Combined with the recent $1.08 EPS result, which missed consensus by $0.02, and revenue that fell short of estimates, the regulatory and earnings disappointments are the strongest apparent reasons for pressure on BAC. Bank of America Investor Alert Regarding AML Penalty

Bank of America Company Profile

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.