Truist Financial Has Lowered Expectations for Bank of America (NYSE:BAC) Stock Price

Key Points

• Truist Financial lowered Bank of America’s price target from $62 to $58 while maintaining a “buy” rating, implying 13.17% upside from the prior close.
• Bank of America shares traded near $51.25, below their 50-day moving average, after the company reported quarterly EPS of $1.08 and revenue of $29.96 billion—both slightly below analyst expectations.
• Analyst sentiment remains positive overall, with 20 buy ratings and six holds; the average rating is “Moderate Buy” and the consensus price target is $62.78.

Bank of America (NYSE:BAC) had its price objective reduced by analysts at Truist Financial from $62.00 to $58.00 in a research note issued on Thursday, Benzinga reports. The firm currently has a "buy" rating on the financial services provider's stock. Truist Financial's price objective would suggest a potential upside of 13.17% from the stock's previous close.

BAC has been the subject of several other reports. JPMorgan Chase & Co. cut their price objective on shares of Bank of America from $68.00 to $62.00 and set an "overweight" rating for the company in a research report on Friday, October 2nd. Rothschild & Co Redburn set a $72.00 price target on shares of Bank of America in a research note on Tuesday, October 6th. Barclays cut their price target on Bank of America from $72.00 to $68.00 and set an "overweight" rating on the stock in a report on Thursday. Evercore set a $62.00 price objective on shares of Bank of America in a research report on Thursday, October 1st. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Bank of America in a research note on Tuesday, July 21st. Twenty research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $62.78.

Bank of America Price Performance

Bank of America stock traded down $0.14 during midday trading on Thursday, reaching $51.25. The company had a trading volume of 13,024,467 shares, compared to its average volume of 37,469,449. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. Bank of America has a 12-month low of $46.12 and a 12-month high of $65.22. The company has a market capitalization of $358.39 billion, a P/E ratio of 11.76, a P/E/G ratio of 0.87 and a beta of 1.21. The firm's fifty day simple moving average is $59.51 and its 200-day simple moving average is $56.69.

Bank of America (NYSE:BAC - Get Free Report) last announced its 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 business had revenue of $29.96 billion for the quarter, compared to analyst estimates of $30.58 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%. The company's revenue for the quarter was up 3.2% compared to the same quarter last year. During the same period last year, the firm earned $1.06 EPS. As a group, equities analysts anticipate that Bank of America will post 4.60 EPS for the current year.

Institutional Trading of Bank of America

A number of hedge funds have recently bought and sold shares of the company. Legal & General Group Plc bought a new position in shares of Bank of America in the second quarter worth about $2,571,060,000. Amundi grew its holdings 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 purchasing an additional 4,721,969 shares during the last quarter. Deutsche Bank AG acquired a new position in Bank of America during the 2nd quarter worth approximately $2,359,172,000. Bank of New York Mellon Corp acquired a new position in Bank of America during the 2nd quarter worth approximately $2,313,953,000. Finally, Dimensional Fund Advisors LP increased its position in Bank of America by 1.8% during 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 in the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Management expects at least 8% net interest income growth in 2027, supported by loan and deposit expansion. Third-quarter net interest income rose 8% year over year to approximately $16.4 billion, while average loans increased 6% and deposits grew 2%. BAC Q3 Earnings Call Highlights NII Growth and Trading Pressure
• Positive Sentiment: Consumer banking and wealth management were relative bright spots. Wealth-management revenue increased 13% year over year, and the bank returned $8.3 billion to shareholders through dividends and share repurchases. Merrill Lynch’s Fee-Based Advisory Assets Just Hit a Record $1.9 Trillion
• Positive Sentiment: Robert W. Baird upgraded BAC to “outperform” with a $62 target, while Keefe, Bruyette & Woods maintained “outperform” with a $65 target. These targets imply meaningful upside from recent trading levels.
• Neutral Sentiment: Management said it is addressing software and compliance weaknesses, including hiring roughly 1,000 contractors to patch vulnerabilities identified by Anthropic’s Mythos AI model. The added remediation work increases near-term costs but could reduce operational risk over time. Bank of America hired 1,000 contractors to patch software flaws
• Negative Sentiment: Third-quarter adjusted EPS of $1.08 and revenue of roughly $30.0 billion missed consensus estimates. Reported EPS was $0.91, down from $1.04 a year earlier, after a $1.2 billion non-tax-deductible regulatory charge. Bank of America profit hurt by $1.2 billion fine
• Negative Sentiment: Regulators cited failures to report more than $5 billion in suspicious transactions and sanctions-compliance violations, producing penalties exceeding $1.2 billion and raising concerns about lingering compliance costs and management oversight.
• Negative Sentiment: Fixed-income trading revenue fell 17%, investment-banking activity weakened, and expenses grew faster than revenue. TD Cowen cut its target to $56 and Morgan Stanley reduced its target to $61, reflecting continued earnings and cost concerns.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.