Bank of America FY2025 EPS Forecast Raised by Zacks Research

Key Points

• Zacks Research has raised its FY2025 earnings per share (EPS) forecast for Bank of America from $3.63 to $3.67, indicating a positive outlook for the financial services provider.
• Bank of America recently announced a quarterly dividend increase to $0.28 per share, which reflects a yield of 2.5%, up from the previous dividend of $0.26.
• The company's Board of Directors has authorized a $40 billion stock buyback plan, allowing for the repurchase of up to 11.1% of its shares, signaling confidence in its valuation.

Bank of America Corporation (NYSE:BAC - Free Report) - Equities research analysts at Zacks Research increased their FY2025 EPS estimates for shares of Bank of America in a report issued on Wednesday, August 6th. Zacks Research analyst R. Department now forecasts that the financial services provider will post earnings of $3.67 per share for the year, up from their prior forecast of $3.63. The consensus estimate for Bank of America's current full-year earnings is $3.70 per share. Zacks Research also issued estimates for Bank of America's Q1 2026 earnings at $0.93 EPS, Q3 2026 earnings at $1.06 EPS and FY2027 earnings at $4.99 EPS.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.03. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The company had revenue of ($22,273.00) million during the quarter, compared to analyst estimates of $26.79 billion. During the same period in the previous year, the business earned $0.83 earnings per share. The firm's quarterly revenue was up 4.3% compared to the same quarter last year.

A number of other analysts also recently weighed in on the company. Royal Bank Of Canada set a $53.00 target price on Bank of America and gave the stock an "outperform" rating in a research report on Monday, June 30th. Hsbc Global Res lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Truist Financial upped their price objective on shares of Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Argus decreased their target price on shares of Bank of America from $53.00 to $47.00 and set a "buy" rating on the stock in a research report on Wednesday, April 16th. Finally, Cowen initiated coverage on shares of Bank of America in a research report on Wednesday, May 14th. They set a "buy" rating for the company. One analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Price Performance

Shares of BAC traded up $0.67 during midday trading on Friday, reaching $45.59. The stock had a trading volume of 3,301,058 shares, compared to its average volume of 42,472,496. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The company has a market capitalization of $337.68 billion, a price-to-earnings ratio of 13.33, a price-to-earnings-growth ratio of 1.76 and a beta of 1.31. The company's 50-day moving average is $46.39 and its 200 day moving average is $43.78. Bank of America has a 12-month low of $33.06 and a 12-month high of $49.31.

Institutional Investors Weigh In On Bank of America

Several hedge funds and other institutional investors have recently added to or reduced their stakes in BAC. Nova Wealth Management Inc. grew its stake in shares of Bank of America by 75.2% in the second quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock worth $25,000 after acquiring an additional 227 shares during the last quarter. Quaker Wealth Management LLC grew its position in Bank of America by 246.5% during the 2nd quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 880 shares during the last quarter. RMG Wealth Management LLC bought a new stake in Bank of America during the 2nd quarter valued at about $28,000. CGC Financial Services LLC raised its holdings in Bank of America by 585.4% in the second quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock worth $29,000 after buying an additional 521 shares during the last quarter. Finally, Vega Investment Solutions bought a new position in shares of Bank of America in the fourth quarter worth approximately $30,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Bank of America news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the transaction, the insider owned 223,407 shares in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.30% of the stock is owned by company insiders.

Bank of America announced that its Board of Directors has authorized a stock buyback plan on Wednesday, July 23rd that permits the company to buyback $40.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be issued a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 2.5%. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is 30.41%.

Bank of America Company Profile

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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