JPMorgan Chase & Co. Has Lowered Expectations for Bank of America (NYSE:BAC) Stock Price

Key Points

• JPMorgan cut Bank of America’s price target from $68 to $62 but maintained an “overweight” rating, implying approximately 15.57% upside from the stock’s previous close.
• Analyst sentiment remains broadly positive: 20 analysts rate BAC a Buy and six rate it a Hold, producing a “Moderate Buy” consensus rating and an average price target of $63.91.
• Bank of America shares closed at $53.65 after declining 0.2%. The company recently exceeded quarterly earnings and revenue expectations, while institutional investors own approximately 70.71% of its stock.

Bank of America (NYSE:BAC) had its target price cut by investment analysts at JPMorgan Chase & Co. from $68.00 to $62.00 in a report issued on Friday, Benzinga reports. The firm presently has an "overweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 15.57% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. Jefferies Financial Group dropped their price target on shares of Bank of America from $75.00 to $70.00 and set a "buy" rating on the stock in a research note on Thursday, September 24th. Morgan Stanley reissued an "overweight" rating on shares of Bank of America in a research report on Tuesday, September 15th. Keefe, Bruyette & Woods increased their target price on Bank of America from $67.00 to $70.00 and gave the company an "outperform" rating in a research note on Wednesday, July 15th. UBS Group boosted their price target on Bank of America from $68.00 to $70.00 and gave the stock a "buy" rating in a research note on Monday, August 3rd. Finally, Argus set a $70.00 price objective on Bank of America in a research report on Wednesday, July 15th. Twenty equities research 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 stock currently has an average rating of "Moderate Buy" and a consensus price target of $63.91.

Bank of America Trading Down 0.2%

Shares of NYSE:BAC traded down $0.08 on Friday, hitting $53.65. The company had a trading volume of 17,255,457 shares, compared to its average volume of 37,154,422. The firm's 50-day simple moving average is $61.06 and its two-hundred day simple moving average is $56.30. The firm has a market capitalization of $375.15 billion, a price-to-earnings ratio of 12.30, a P/E/G ratio of 0.87 and a beta of 1.21. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. Bank of America has a 1 year low of $46.12 and a 1 year high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last released its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.13 by $0.08. The company had revenue of $31.56 billion during the quarter, compared to analysts' expectations of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The firm's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.89 EPS. Equities analysts anticipate that Bank of America will post 4.66 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. First Financial Bank Trust Division grew its stake in Bank of America by 14.7% during the third quarter. First Financial Bank Trust Division now owns 231,099 shares of the financial services provider's stock valued at $12,579,000 after acquiring an additional 29,681 shares in the last quarter. Burkett Financial Services LLC grew its position in shares of Bank of America by 1.6% during the third quarter. Burkett Financial Services LLC now owns 16,864 shares of the financial services provider's stock valued at $918,000 after purchasing an additional 266 shares in the last quarter. Doliver Advisors LP increased its holdings in shares of Bank of America by 76.8% in the third quarter. Doliver Advisors LP now owns 27,640 shares of the financial services provider's stock worth $1,504,000 after purchasing an additional 12,007 shares during the last quarter. Sarver Vrooman Wealth Advisors boosted its stake in Bank of America by 66.7% during the third quarter. Sarver Vrooman Wealth Advisors now owns 1,524 shares of the financial services provider's stock valued at $83,000 after buying an additional 610 shares during the last quarter. Finally, Cim Investment Management Inc. increased its stake in Bank of America by 340.7% in the 2nd quarter. Cim Investment Management Inc. now owns 51,780 shares of the financial services provider's stock worth $2,950,000 after acquiring an additional 40,030 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Key Bank of America News

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

• Positive Sentiment: Bank of America’s Personal Retirement Strategy surpassed $100 billion in assets, while Merrill Managed exceeded $10 billion. The milestones suggest continued demand for the company’s fee-generating retirement and investment-management services. Bank of America Personal Retirement Strategy Surpasses $100 Billion
• Positive Sentiment: Truist maintained a Buy rating on BAC, although it reduced its price target from $65 to $62. The revised target still implies meaningful upside from recent trading levels and indicates analysts remain constructive on the shares. Truist Bank of America Price Target
• Positive Sentiment: The Federal Reserve’s proposed stress-test changes could make capital requirements more predictable, potentially helping large banks such as BAC plan dividends and buybacks with greater certainty. Federal Reserve Stress-Test Changes
• Neutral Sentiment: Bank of America pledged $10 million to Boston Children’s Hospital for a pediatric behavioral-health campus. The donation supports the company’s reputation and community profile but is not expected to materially affect earnings. Boston Children’s Hospital Gift
• Negative Sentiment: Bank stocks have extended their recent decline as a sharp rise in interest rates raises concerns about bond-market losses, funding costs and pressure on loan demand. This macroeconomic pressure is weighing on BAC and the broader banking sector. Bank Stocks and Rising Interest Rates
• Negative Sentiment: Merrill Lynch agreed to pay $39 million to settle claims that customers received near-zero interest on idle retirement-account cash. Although the settlement is manageable relative to BAC’s size, it adds legal and reputational risk. Bank of America Merrill Lynch $39 Million Settlement
• Negative Sentiment: One market analysis argues BAC could be materially overvalued if elevated artificial-intelligence spending fails to generate stronger returns on capital. That valuation concern is contributing to caution after the stock’s strong multiyear gains. Bank of America Valuation and AI Spending

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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