Bank of America Co. (NYSE:BAC) shares rose 0.5% on Friday, reaching $38.43 and was last seen at $38.42. About 6,721,471 shares changed hands during midday trading, a decline of 83% from the average daily volume of 39,478,473 shares. The stock had previously closed at $38.21.
Wall Street analysts comment
Several equities analysts have recently issued reports on BAC shares. BMO Capital Markets raised their price target on shares of Bank of America from $38.00 to $40.00 and gave the company a “market perform” rating in a research report on Thursday, July 18. Wolfe Research raised Bank of America from “peer perform” to “outperform” and set a $42.00 price target for the company in a report on Friday, April 19. Barclays increased their price target on Bank of America from $43.00 to $49.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 17. Royal Bank of Canada increased their price target on shares of Bank of America from $39.00 to $46.00 and gave the company an “outperform” rating in a research report on Wednesday, July 17. Finally, Seaport Res Ptn upgraded Bank of America from a “hold” rating to a “strong buy” rating in a report on Tuesday, July 2. One research analyst has rated the stock with a “sell”, nine have “hold”, eleven have “buy” and one has given the firm a “strong buy” rating. Based on data from MarketBeat, Bank of America currently has an average rating of “Moderate Buy” and an average price target of $42.07.
Check out our latest research report on BAC
Price development of Bank of America shares
The company has a debt-to-equity ratio of 1.09, a current ratio of 0.80 and a quick ratio of 0.80. The stock has a market cap of $299.36 billion, a P/E ratio of 13.25, a PEG ratio of 1.41 and a beta of 1.35. The company has a 50 day moving average price of $40.31 and a 200 day moving average price of $37.68.
Bank of America (NYSE:BAC – Get Free Report) last released its quarterly earnings results on Tuesday, July 16. The financial services provider reported earnings per share of $0.83 for the quarter, beating the consensus estimate of $0.79 by $0.04. Bank of America had a return on equity of 10.56% and a net margin of 13.28%. The company had revenue of $25.38 billion for the quarter, compared to the consensus estimate of $25.22 billion. In the same quarter last year, the company reported earnings per share of $0.88. Bank of America’s quarterly revenue increased 0.7% year-over-year. Research analysts expect Bank of America Co. to report earnings per share of $3.27 for the current year.
Bank of America increases dividend
The company also recently announced a quarterly dividend, which will be paid on Friday, September 27th. Investors of record on Friday, September 6th will receive a dividend of $0.26 per share. This is a positive change from Bank of America’s previous quarterly dividend of $0.24. The ex-dividend date of this dividend is Friday, September 6th. This represents an annualized dividend of $1.04 and a yield of 2.72%. Bank of America’s dividend payout ratio (DPR) is currently 35.99%.
Bank of America announced that its board of directors approved a share repurchase program on Wednesday, July 24, that authorizes the company to repurchase $25.00 billion worth of outstanding shares. This repurchase authorization authorizes the financial services provider to buy back up to 7.6% of its shares through the open market. Share repurchase programs are generally a sign that the company’s board believes its shares are undervalued.
Insider transactions at Bank of America
In related news, insider Lindsay D. Hans sold 10,901 shares of the company’s stock in a transaction that occurred on Monday, August 5. The shares were sold at an average price of $36.91, for a total value of $402,355.91. Following the completion of the transaction, the insider now owns 10,907 shares of the company’s stock, valued at $402,577.37. The sale was disclosed in a legal filing with the SEC, which is available through the SEC’s website. In related news, insider Lindsay D. Hans sold 10,901 shares of the company’s stock in a transaction that occurred on Monday, August 5. The shares were sold at an average price of $36.91, for a total value of $402,355.91. Following the completion of the sale, the insider now directly owns 10,907 shares of the company’s stock, valued at $402,577.37. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Berkshire Hathaway Inc. sold 6,993,520 shares of the company’s stock in a transaction dated Wednesday, July 31. The shares were sold at an average price of $40.63, for a total transaction of $284,146,717.60. Following the transaction, the insider now owns 948,077,805 shares of the company’s stock, valued at $38,520,401,217.15. The disclosure of this sale can be found here. Over the last three months, insiders have sold 56,549,666 shares of the company’s stock, valued at $2,403,801,723. 0.29% of the shares are currently owned by company insiders.
Hedge funds comment on Bank of America
Major investors have recently been buying and selling shares of the company. McAdam LLC increased its holdings in Bank of America by 2.1% in the second quarter. McAdam LLC now owns 11,434 shares of the financial services provider’s stock worth $455,000 after buying an additional 238 shares in the last quarter. BTC Capital Management Inc. increased its holdings in shares of Bank of America by 1.2% in the second quarter. BTC Capital Management Inc. now owns 20,248 shares of the financial services provider’s stock worth $805,000 after buying an additional 248 shares in the last quarter. Central Bank & Trust Co. increased its holdings in shares of Bank of America by 15.1% in the second quarter. Central Bank & Trust Co. now owns 1,892 shares of the financial services provider’s stock worth $75,000 after buying an additional 248 shares in the last quarter. SNS Financial Group LLC increased its position in shares of Bank of America by 3.3% in the 2nd quarter. SNS Financial Group LLC now owns 7,783 shares of the financial services provider’s stock worth $310,000 after purchasing an additional 248 shares in the last quarter. Finally, Verdence Capital Advisors LLC increased its position in shares of Bank of America by 0.3% in the second quarter. Verdence Capital Advisors LLC now owns 94,081 shares of the financial services provider’s stock worth $3,742,000 after purchasing an additional 251 shares in the last quarter. Institutional investors own 70.71% of the company’s stock.
Bank of America Company Profile
(Get free report)
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services to individual customers, small and medium-sized businesses, institutional investors, large corporations and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets.
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