Bank of America (NYSE:BAC) Given New $61.00 Price Target at TD Cowen

Key Points

• TD Cowen has raised its price target for Bank of America from $59.00 to $61.00, indicating a potential upside of 16.67% based on the company's previous close and maintaining a "buy" rating.
• Several other analysts have mixed views on the stock; while Wells Fargo increased its price target to $60.00, Baird R W downgraded their rating from "strong-buy" to "hold".
• Bank of America recently announced a $40 billion stock repurchase plan, signifying confidence from its Board of Directors in the company's current stock valuation.

Bank of America (NYSE:BAC) had its price target upped by equities researchers at TD Cowen from $59.00 to $61.00 in a research note issued to investors on Thursday,MarketScreener reports. The firm presently has a "buy" rating on the financial services provider's stock. TD Cowen's target price points to a potential upside of 16.67% from the company's previous close.

Other equities analysts also recently issued research reports about the stock. Baird R W downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Hsbc Global Res lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Wells Fargo & Company raised their price objective on shares of Bank of America from $56.00 to $60.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 16th. UBS Group raised their price objective on Bank of America from $55.00 to $57.00 and gave the company a "buy" rating in a report on Tuesday, October 7th. Finally, Wall Street Zen lowered shares of Bank of America from a "hold" rating to a "sell" rating in a report on Saturday, October 11th. Twenty-one equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Bank of America presently has a consensus rating of "Moderate Buy" and an average target price of $55.77.

Bank of America Stock Performance

Shares of BAC stock opened at $52.28 on Thursday. The firm's 50 day moving average is $49.89 and its 200 day moving average is $45.67. 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 stock has a market capitalization of $387.26 billion, a P/E ratio of 15.33, a PEG ratio of 1.94 and a beta of 1.33. Bank of America has a 12 month low of $33.06 and a 12 month high of $52.88.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, October 15th. The financial services provider reported $1.06 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.13. The firm had revenue of $28.09 billion for the quarter, compared to analyst estimates of $27.05 billion. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The business's revenue for the quarter was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.81 EPS. On average, sell-side analysts anticipate that Bank of America will post 3.7 earnings per share for the current year.

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

Insider Buying and Selling at Bank of America

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 value of $6,762,177.87. Following the completion of the transaction, 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 position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Bank of America

Several hedge funds have recently modified their holdings of the stock. Sheets Smith Wealth Management grew its holdings in Bank of America by 128.3% during the third quarter. Sheets Smith Wealth Management now owns 30,166 shares of the financial services provider's stock worth $1,556,000 after purchasing an additional 16,950 shares during the period. Avanza Fonder AB raised its position in Bank of America by 9.3% during the third quarter. Avanza Fonder AB now owns 502,889 shares of the financial services provider's stock valued at $25,944,000 after purchasing an additional 42,979 shares in the last quarter. Covea Finance grew its stake in shares of Bank of America by 12.6% during the third quarter. Covea Finance now owns 762,400 shares of the financial services provider's stock worth $39,332,000 after buying an additional 85,300 shares during the last quarter. Rainier Family Wealth Inc. grew its stake in shares of Bank of America by 4.1% during the third quarter. Rainier Family Wealth Inc. now owns 6,656 shares of the financial services provider's stock worth $343,000 after buying an additional 260 shares during the last quarter. Finally, Borer Denton & Associates Inc. grew its stake in shares of Bank of America by 0.5% in the third quarter. Borer Denton & Associates Inc. now owns 192,398 shares of the financial services provider's stock worth $9,926,000 after purchasing an additional 975 shares during the last quarter. 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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