Bank of America Corporation (NYSE:BAC) hit a new 52-week high on Tuesday following a better than expected earnings announcement. The company traded as high as $60.92 and last traded at $60.8910, with a volume of 11203663 shares changing hands. The stock had previously closed at $59.50.
The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The company had revenue of $8.08 billion during the quarter, compared to the consensus estimate of $30.78 billion. During the same period in the prior year, the business earned $0.89 earnings per share. The company's revenue for the quarter was up 19.6% compared to the same quarter last year.
Bank of America Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Friday, June 5th were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Friday, June 5th. Bank of America's dividend payout ratio is presently 27.72%.
More Bank of America News
Here are the key news stories impacting Bank of America this week:
- Positive Sentiment: Bank of America reported strong Q2 results, with EPS of $1.21 topping estimates and revenue up 19.6% year over year, helped by robust trading and investment banking activity. Trading revenue hit a record $3.6 billion, suggesting the bank is benefiting from active markets and stronger client flows.
- Positive Sentiment: Management’s regional investment banking expansion, including nine senior hires across key U.S. cities, supports the longer-term growth story by deepening relationships with middle-market clients and broadening fee opportunities.
- Neutral Sentiment: Investors are also focused on macro catalysts today, including the June CPI inflation report and broader big-bank earnings, which could influence rate expectations and sector sentiment.
- Negative Sentiment: Despite the earnings beat, BAC shares are moving lower because the market appears to be taking profits and may be reacting to softer-than-expected investor enthusiasm after a run-up ahead of earnings, even with the strong top-line performance.
Wall Street Analyst Weigh In
A number of brokerages have recently commented on BAC. Wells Fargo & Company lifted their price target on Bank of America from $65.00 to $67.00 and gave the company an "overweight" rating in a research note on Monday, July 6th. Keefe, Bruyette & Woods upped their price objective on Bank of America from $63.00 to $64.00 and gave the company an "outperform" rating in a research note on Thursday, April 16th. Morgan Stanley raised their price objective on shares of Bank of America from $61.00 to $67.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Autonomous Res reduced their target price on shares of Bank of America from $62.00 to $54.00 and set a "neutral" rating on the stock in a report on Monday, April 6th. Finally, HSBC boosted their target price on shares of Bank of America from $55.00 to $60.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Twenty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $62.19.
View Our Latest Report on BAC
Insider Activity
In other news, insider Geoffrey S. Greener sold 126,756 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the completion of the transaction, the insider directly owned 1,373,397 shares in the company, valued at $72,803,774.97. This trade represents a 8.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.27% of the stock is owned by company insiders.
Institutional Trading of Bank of America
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ballast Inc. raised its holdings in Bank of America by 65.6% during the 2nd quarter. Ballast Inc. now owns 14,875 shares of the financial services provider's stock worth $848,000 after purchasing an additional 5,894 shares during the last quarter. Regent Peak Wealth Advisors LLC lifted its position in shares of Bank of America by 4.2% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 14,073 shares of the financial services provider's stock worth $802,000 after purchasing an additional 564 shares during the period. Tema ETFs LLC boosted its stake in shares of Bank of America by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 136,391 shares of the financial services provider's stock valued at $7,772,000 after purchasing an additional 13,195 shares during the last quarter. GenWealth Group Inc. acquired a new stake in shares of Bank of America during the second quarter worth $206,000. Finally, Dagco Inc. increased its position in shares of Bank of America by 337.2% during the second quarter. Dagco Inc. now owns 9,330 shares of the financial services provider's stock worth $532,000 after buying an additional 7,196 shares during the period. Institutional investors and hedge funds own 70.71% of the company's stock.
Bank of America Price Performance
The firm has a market cap of $431.98 billion, a P/E ratio of 15.05, a P/E/G ratio of 1.00 and a beta of 1.17. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.18. The business's 50 day moving average is $54.62 and its two-hundred day moving average is $52.98.
Bank of America Company Profile
(
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Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.
Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.
Further Reading
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