Bank of America (NYSE:BAC) Shares Down 2.8% - Here's Why

On Friday, Bank of America Co. (NYSE:BAC) saw its stock price decrease by 2.8%. The shares traded as low as $41.26 before closing at $41.37. During mid-day trading, a total of 7,651,860 shares were exchanged, indicating a significant decline of 79% from the average session volume of 35,691,200 shares. The stock had closed at $42.56 in the previous session.

Analyst Insights on Bank of America

Various analysts have recently shared their perspectives on Bank of America shares. Notably, Hsbc Global Research upgraded the company's rating from "hold" to "strong-buy" in a report dated January 7th. In contrast, Citigroup lowered their price target on BAC from $54.00 to $50.00 while maintaining a "buy" rating. Meanwhile, Keefe, Bruyette & Woods adjusted their target price, increasing it from $50.00 to $57.00, granting the bank an "outperform" rating in early December. Barclays enhanced their price target on BAC from $53.00 to $58.00, labeling it as "overweight" in their report on January 6th. Additionally, Oppenheimer raised their price objective from $54.00 to $55.00, affirming the company as "outperform" in a report dated January 17th. Overall, one analyst has issued a sell rating, six have a hold rating, and a combined total of nineteen analysts have rated the stock as either "buy" or "strong buy," yielding an average rating of "Moderate Buy" and a consensus price target of $48.45 according to data from MarketBeat.com.

Stock Performance Overview

Bank of America shares have recently trended down, reflecting a broader market sentiment. The company maintains a debt-to-equity ratio of 1.04, with a current ratio and quick ratio both at 0.78. The 50-day moving average for the stock is currently $44.55, while the 200-day moving average stands at $43.85. As of now, the company's market capitalization is $312.49 billion, with a price-to-earnings (P/E) ratio of 12.77, a price-to-earnings-growth (PEG) ratio of 1.21, and a beta of 1.32.

Recent Earnings Report

Bank of America released its latest earnings results on January 16th. The company reported earnings per share (EPS) of $0.82 for the quarter, which surpassed analysts' expectations of $0.77 by a margin of $0.05. The financial institution posted a net margin of 14.10% and a return on equity of 10.29%. Additionally, the firm reported revenue of $25.30 billion for the quarter, exceeding the anticipated $25.12 billion. This revenue figure represented a 15.0% increase compared to the same quarter a year earlier. Analysts forecast that Bank of America is set to report an EPS of 3.7 for the current fiscal year.

Dividend Information

The financial services provider recently announced a quarterly dividend to be distributed on March 28th. Shareholders recorded as of March 7th will receive a dividend of $0.26. The ex-dividend date is similarly set for March 7th. This dividend translates to an annualized payout of $1.04, equating to a yield of 2.53%. Currently, Bank of America’s dividend payout ratio is 32.30%.

Institutional Investor Activity

Recent activity from large investors indicates shifts in holdings for Bank of America stock. Zurcher Kantonalbank Zurich Cantonalbank increased its stake by 4.6% during the fourth quarter, amassing a total of 3,940,121 shares valued at approximately $173.17 million following an additional acquisition of 173,021 shares. Additionally, OFI Invest Asset Management has established a new position in Bank of America worth around $60.68 million. Arizona State Retirement System increased its ownership by 0.5% during the same quarter, resulting in 2,028,439 shares valued at $89.15 million. Keybank National Association OH enhanced their stake by 1.1%, now owning 3,458,616 shares worth about $152.01 million. Charles Schwab Investment Management Inc. also grew its position by 0.7%, bringing their total to 42,929,896 shares valued at approximately $1.89 billion. It is noteworthy that institutional investors and hedge funds collectively own 70.71% of Bank of America stock.

About Bank of America

Bank of America Corporation offers a range of banking and financial products to individuals, small and middle-market businesses, institutional investors, major corporations, and governmental entities worldwide. The company is organized into four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

Conclusion

With a mix of analyst opinions, performance metrics, and dividend announcements, Bank of America is reflecting a complex financial landscape. Investors should consider these factors alongside their investment strategies before making decisions regarding this stock.

Bank, Stock, Market