Bank of America (NYSE:BAC) Given New $53.00 Price Target at HSBC

Key Points

• HSBC raised its price target for Bank of America from $51.00 to $53.00, indicating a potential upside of 4.64% from the previous close, while maintaining a "hold" rating for the stock.
• The company's board approved a significant $40 billion share repurchase program, suggesting that management believes the stock is undervalued.
• Seventeen analysts have rated Bank of America with a "Buy" rating, and the stock has an average price target of $52.88, reflecting positive market sentiment despite recent mixed evaluations by some firms.

Bank of America (NYSE:BAC) had its target price raised by investment analysts at HSBC from $51.00 to $53.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The firm currently has a "hold" rating on the financial services provider's stock. HSBC's price target points to a potential upside of 4.64% from the company's previous close.

Other analysts have also issued research reports about the company. Phillip Securities lowered Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. Robert W. Baird restated a "neutral" rating and issued a $52.00 target price on shares of Bank of America in a report on Friday, June 27th. Truist Financial lifted their price target on Bank of America from $51.00 to $56.00 and gave the stock a "buy" rating in a research report on Tuesday, September 23rd. Royal Bank Of Canada upped their price target on shares of Bank of America from $53.00 to $56.00 and gave the company an "outperform" rating in a research report on Wednesday. Finally, Baird R W lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Friday, June 27th. Seventeen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $52.88.

Bank of America Price Performance

Shares of NYSE BAC opened at $50.65 on Thursday. The firm has a market cap of $375.16 billion, a PE ratio of 14.84, a PEG ratio of 2.00 and a beta of 1.33. The firm has a fifty day moving average of $49.29 and a 200 day moving average of $45.13. Bank of America has a one year low of $33.06 and a one year high of $52.88. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.86 by $0.03. The company had revenue of ($22,273.00) million during the quarter, compared to analysts' expectations of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm's quarterly revenue was up 4.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.83 EPS. As a group, research analysts predict that Bank of America will post 3.7 EPS for the current fiscal year.

Bank of America announced that its board has approved a share repurchase program on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in shares. This buyback authorization authorizes the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

Insider Transactions at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the sale, the insider owned 223,407 shares of the company's stock, valued at $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Bank of America

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Nova Wealth Management Inc. increased its position in shares of Bank of America by 75.2% in the 2nd quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock worth $25,000 after purchasing an additional 227 shares during the last quarter. Quaker Wealth Management LLC raised its holdings in shares of Bank of America by 246.5% during the second quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider's stock worth $25,000 after purchasing an additional 880 shares during the period. RMG Wealth Management LLC bought a new position in shares of Bank of America in the 2nd quarter worth about $28,000. CGC Financial Services LLC raised its position in shares of Bank of America by 585.4% during the 2nd quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock worth $29,000 after purchasing an additional 521 shares during the period. Finally, Wealth Preservation Advisors LLC grew its stake in Bank of America by 48.7% during the 2nd quarter. Wealth Preservation Advisors LLC now owns 681 shares of the financial services provider's stock worth $32,000 after buying an additional 223 shares during the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

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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