Bank of America (NYSE:BAC) Given New $58.00 Price Target at Argus

Key Points

• Bank of America has had its price target increased from $53.00 to $58.00 by Argus, indicating a potential upside of 13.10% from its previous close.
• The company reported earnings of $1.06 per share, exceeding analysts' expectations, with quarterly revenue up 10.8% year-over-year.
• Bank of America has initiated a $40 billion stock buyback plan, signaling the board's belief that the stock is undervalued.

Bank of America (NYSE:BAC) had its price objective raised by equities researchers at Argus from $53.00 to $58.00 in a note issued to investors on Friday,MarketScreener reports. Argus' price target suggests a potential upside of 13.10% from the stock's previous close.

A number of other equities research analysts have also recently weighed in on the company. Baird R W cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Wells Fargo & Company raised their price objective on shares of Bank of America from $56.00 to $60.00 and gave the company an "overweight" rating in a report on Tuesday, September 16th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Bank of America in a report on Wednesday, October 8th. Keefe, Bruyette & Woods reissued an "outperform" rating and set a $58.00 target price (up previously from $57.00) on shares of Bank of America in a research report on Thursday. Finally, Phillip Securities lowered shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research note on Friday, July 25th. Twenty-one investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $57.29.

Bank of America Stock Up 1.7%

Shares of BAC opened at $51.28 on Friday. The stock has a 50 day moving average price of $50.11 and a 200 day moving average price of $45.79. 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 1.12, a quick ratio of 0.79 and a current ratio of 0.79. The stock has a market capitalization of $379.83 billion, a price-to-earnings ratio of 13.97, a PEG ratio of 1.93 and a beta of 1.33.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Wednesday, October 15th. The financial services provider reported $1.06 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 company had revenue of $28.09 billion during the quarter, compared to the consensus estimate of $27.05 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. Bank of America's quarterly revenue was up 10.8% on a year-over-year basis. Equities research analysts forecast that Bank of America will post 3.7 earnings per share for the current fiscal year.

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

Insider Activity at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider directly owned 223,407 shares in the company, valued at approximately $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 can be accessed through the SEC website. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Bank of America

A number of institutional investors have recently modified their holdings of BAC. Quaker Wealth Management LLC boosted its holdings in Bank of America by 246.5% in the 2nd quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider's stock worth $25,000 after acquiring an additional 880 shares during the period. Nova Wealth Management Inc. lifted its holdings in 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 buying an additional 227 shares in the last quarter. Steph & Co. boosted its position in Bank of America by 224.3% in the 3rd quarter. Steph & Co. now owns 548 shares of the financial services provider's stock valued at $28,000 after buying an additional 379 shares during the last quarter. RMG Wealth Management LLC purchased a new position in Bank of America in the 2nd quarter valued at about $28,000. Finally, CGC Financial Services LLC grew its stake in shares of Bank of America by 585.4% during the second quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock valued at $29,000 after acquiring an additional 521 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

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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