Bank of America (NYSE:BAC) Stock Price Expected to Rise, Oppenheimer Analyst Says

Key Points

• Bank of America has had its price target increased from $55.00 to $57.00 by Oppenheimer, indicating a potential upside of 18.66% from its current price.
• The bank's recent quarterly earnings showed $0.89 EPS, surpassing analysts' expectations of $0.86, and year-over-year revenue growth of 4.3%.
• Bank of America has initiated a share buyback plan allowing the repurchase of $40 billion in shares, representing up to 11.1% of its outstanding stock.

Bank of America (NYSE:BAC) had its price target upped by stock analysts at Oppenheimer from $55.00 to $57.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Oppenheimer's target price would suggest a potential upside of 18.85% from the stock's current price.

Other equities research analysts have also recently issued research reports about the stock. Argus cut their price objective on shares of Bank of America from $53.00 to $47.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. The Goldman Sachs Group increased their price objective on shares of Bank of America from $46.00 to $52.00 and gave the stock a "buy" rating in a research note on Tuesday, June 10th. Hsbc Global Res cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 8th. Piper Sandler dropped their price objective on shares of Bank of America from $45.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, April 16th. Finally, Barclays lowered their target price on shares of Bank of America from $58.00 to $54.00 and set an "overweight" rating for the company in a report on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seventeen have assigned a buy rating to the company's stock. According to MarketBeat.com, Bank of America currently has an average rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Stock Performance

Bank of America stock traded up $0.01 during mid-day trading on Wednesday, reaching $47.96. The company's stock had a trading volume of 32,228,451 shares, compared to its average volume of 39,278,336. The firm's fifty day moving average price is $46.14 and its two-hundred day moving average price is $43.80. The company has a market capitalization of $361.23 billion, a P/E ratio of 14.02, a PEG ratio of 1.87 and a beta of 1.30. 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 has a 12-month low of $33.06 and a 12-month high of $49.31.

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

Bank of America declared that its Board of Directors has authorized a stock buyback 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 reacquire up to 11.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of BAC. Capital World Investors boosted its stake in Bank of America by 23.9% during the fourth quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider's stock worth $3,876,853,000 after buying an additional 17,031,143 shares during the period. Deutsche Bank AG boosted its stake 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 valued at $2,007,718,000 after purchasing an additional 14,960,086 shares during the period. Price T Rowe Associates Inc. MD raised its holdings in Bank of America by 10.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock valued at $5,381,126,000 after acquiring an additional 11,691,451 shares in the last quarter. Northern Trust Corp raised its holdings in Bank of America by 17.2% in the fourth quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock valued at $2,985,785,000 after acquiring an additional 9,980,859 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its holdings in Bank of America by 31.1% in the fourth quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 39,051,595 shares of the financial services provider's stock valued at $1,716,318,000 after acquiring an additional 9,258,040 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

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.