Analysts Issue Forecasts for Bank of America FY2025 Earnings

Key Points

• Seaport Res Ptn has increased its FY2025 earnings estimate for Bank of America to $3.79 per share, up from a previous forecast of $3.69, as analysts adjust their expectations for the financial giant.
• Bank of America reported strong quarterly earnings of $1.06 per share, exceeding analysts' expectations, and revenue of $28.09 billion, which also surpassed prior estimates.
• The company announced a $40 billion stock buyback plan and increased its quarterly dividend from $0.26 to $0.28, indicating confidence in its financial health.

Bank of America Corporation (NYSE:BAC - Free Report) - Research analysts at Seaport Res Ptn lifted their FY2025 earnings estimates for shares of Bank of America in a research report issued to clients and investors on Monday, October 20th. Seaport Res Ptn analyst J. Mitchell now expects that the financial services provider will earn $3.79 per share for the year, up from their previous forecast of $3.69. The consensus estimate for Bank of America's current full-year earnings is $3.70 per share. Seaport Res Ptn also issued estimates for Bank of America's Q4 2025 earnings at $0.95 EPS, Q2 2026 earnings at $1.14 EPS and Q4 2026 earnings at $1.17 EPS.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, October 15th. The financial services provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.93 by $0.13. Bank of America had a net margin of 15.70% and a return on equity of 10.76%. The business had revenue of $28.09 billion for the quarter, compared to analyst estimates of $27.05 billion. During the same period last year, the business posted $0.81 EPS. Bank of America's revenue was up 10.8% compared to the same quarter last year.

BAC has been the subject of a number of other reports. Phillip Securities downgraded shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Seaport Global Securities raised their price objective on shares of Bank of America from $59.00 to $66.00 and gave the company a "buy" rating in a research report on Monday, October 6th. Morgan Stanley lifted their price target on shares of Bank of America from $66.00 to $67.00 and gave the stock an "overweight" rating in a research report on Thursday, October 16th. Argus lifted their price objective on shares of Bank of America from $53.00 to $58.00 in a research note on Friday. Finally, Evercore ISI lifted their price target on shares of Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a research note on Thursday, October 16th. Twenty-one research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $57.29.

Bank of America Price Performance

Shares of Bank of America stock opened at $52.02 on Tuesday. The firm has a fifty day moving average price of $50.23 and a two-hundred day moving average price of $46.00. The company has a market cap of $385.32 billion, a PE ratio of 14.17, a price-to-earnings-growth ratio of 1.95 and a beta of 1.33. Bank of America has a fifty-two week low of $33.06 and a fifty-two week high of $52.88. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.79 and a quick ratio of 0.79.

Institutional Investors Weigh In On Bank of America

A number of institutional investors have recently modified their holdings of BAC. Norges Bank bought a new stake in Bank of America during the second quarter worth about $5,091,641,000. Deutsche Bank AG lifted its holdings in shares of Bank of America by 45.1% in the first quarter. Deutsche Bank AG now owns 48,112,090 shares of the financial services provider's stock worth $2,007,718,000 after acquiring an additional 14,960,086 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Bank of America by 124.8% in the second quarter. Arrowstreet Capital Limited Partnership now owns 17,619,837 shares of the financial services provider's stock worth $833,771,000 after acquiring an additional 9,782,208 shares during the last quarter. ABN AMRO Bank N.V. bought a new position in shares of Bank of America in the second quarter worth about $202,439,000. Finally, Unisphere Establishment lifted its holdings in shares of Bank of America by 1,642.5% in the first quarter. Unisphere Establishment now owns 4,195,000 shares of the financial services provider's stock worth $175,057,000 after acquiring an additional 3,954,250 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Insider Activity at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the transaction, the insider directly owned 223,407 shares in the company, valued at $10,180,656.99. The trade was a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is currently owned by corporate insiders.

Bank of America declared that its board has initiated a stock buyback plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Friday, September 5th were issued a $0.28 dividend. This is an increase from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Friday, September 5th. Bank of America's dividend payout ratio is presently 30.52%.

About Bank of America

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market 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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