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

Key Points

• Wolfe Research has increased its price target for Bank of America (NYSE:BAC) from $57.00 to $58.00, indicating a potential upside of 14.05% from the current stock price.
• The financial services provider's stock has received mixed reviews, with 20 analysts giving a Buy rating, while its consensus price target is set at $53.60.
• Bank of America has authorized a $40 billion share buyback, reflecting confidence from its board in the company's value amidst market fluctuations.

Bank of America (NYSE:BAC) had its target price hoisted by research analysts at Wolfe Research from $57.00 to $58.00 in a research note issued on Tuesday,MarketScreener reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Wolfe Research's target price would suggest a potential upside of 14.05% from the stock's current price.

BAC has been the subject of several other reports. TD Cowen upped their price objective on Bank of America from $54.00 to $59.00 and gave the stock a "buy" rating in a research note on Friday. HSBC boosted their target price on Bank of America from $51.00 to $53.00 and gave the company a "hold" rating in a research report on Thursday, October 2nd. Erste Group Bank raised shares of Bank of America from a "hold" rating to a "buy" rating in a research note on Friday. Evercore ISI upped their price target on shares of Bank of America from $49.00 to $55.00 and gave the company an "outperform" rating in a research note on Tuesday, September 30th. Finally, Phillip Securities lowered shares of Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Twenty investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Bank of America currently has a consensus rating of "Moderate Buy" and a consensus price target of $53.60.

Bank of America Price Performance

Shares of BAC stock opened at $50.85 on Tuesday. The business's fifty day moving average is $49.42 and its 200 day moving average is $45.35. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The stock has a market cap of $376.67 billion, a price-to-earnings ratio of 14.85, a PEG ratio of 1.96 and a beta of 1.33. Bank of America has a twelve month low of $33.06 and a twelve month high of $52.88.

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

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

Insider Activity at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.30% of the company's stock.

Institutional Trading of Bank of America

Several hedge funds have recently modified their holdings of the stock. Wealth Advisory Solutions LLC grew its stake in Bank of America by 4.4% in the 2nd quarter. Wealth Advisory Solutions LLC now owns 5,126 shares of the financial services provider's stock valued at $243,000 after buying an additional 214 shares during the last quarter. Ballast Advisors LLC lifted its position in shares of Bank of America by 4.1% during the 2nd quarter. Ballast Advisors LLC now owns 5,489 shares of the financial services provider's stock worth $260,000 after purchasing an additional 218 shares during the last quarter. AllSquare Wealth Management LLC boosted its stake in Bank of America by 1.0% during the 2nd quarter. AllSquare Wealth Management LLC now owns 23,072 shares of the financial services provider's stock valued at $1,092,000 after purchasing an additional 220 shares during the period. Cyndeo Wealth Partners LLC increased its position in Bank of America by 0.8% in the 2nd quarter. Cyndeo Wealth Partners LLC now owns 28,394 shares of the financial services provider's stock worth $1,344,000 after buying an additional 221 shares during the period. Finally, Wealth Preservation Advisors LLC boosted its position in shares of Bank of America by 48.7% in the second quarter. Wealth Preservation Advisors LLC now owns 681 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 223 shares during the period. 70.71% of the stock is currently owned by institutional investors and hedge funds.

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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