Bank of America (NYSE:BAC) Price Target Raised to $56.00

Key Points

• Bank of America's price target was raised by Truist Financial from $51.00 to $56.00, implying a potential upside of 7.37% from its previous close.
• Analysts have varying opinions on the stock, with an average rating of "Moderate Buy" and a consensus target price of $50.92 based on multiple recent reports.
• The company recently authorized a $40 billion share repurchase plan, indicating management believes its shares may be undervalued.

Bank of America (NYSE:BAC) had its target price increased by equities research analysts at Truist Financial from $51.00 to $56.00 in a note issued to investors on Tuesday,MarketScreener reports. Truist Financial's price target indicates a potential upside of 7.37% from the company's previous close.

A number of other brokerages have also recently weighed in on BAC. Royal Bank Of Canada set a $53.00 price target on Bank of America and gave the stock an "outperform" rating in a research report on Monday, June 30th. Citigroup boosted their price objective on Bank of America from $54.00 to $58.00 and gave the stock a "buy" rating in a research note on Friday. Wells Fargo & Company lifted their target price on Bank of America from $56.00 to $60.00 and gave the stock an "overweight" rating in a report on Tuesday, September 16th. HSBC cut Bank of America from a "buy" rating to a "hold" rating and lifted their target price for the stock from $47.00 to $51.00 in a report on Monday, July 7th. Finally, Robert W. Baird reiterated a "neutral" rating and set a $52.00 price target on shares of Bank of America in a report on Friday, June 27th. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $50.92.

Bank of America Trading Up 0.9%

Shares of BAC opened at $52.16 on Tuesday. The company has a market capitalization of $386.32 billion, a P/E ratio of 15.26, a P/E/G ratio of 2.01 and a beta of 1.34. 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 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The stock has a 50-day moving average price of $48.76 and a 200 day moving average price of $44.68.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the prior year, the business posted $0.83 earnings per share. Bank of America's revenue for the quarter was up 4.3% on a year-over-year basis. Sell-side analysts forecast that Bank of America will post 3.7 EPS for the current fiscal year.

Bank of America announced that its board has authorized a share repurchase 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 purchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at Bank of America

In other news, insider James P. Demare sold 148,391 shares of Bank of America stock in a transaction 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 transaction, the insider 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of BAC. Canal Capital Management LLC purchased a new stake in shares of Bank of America during the 2nd quarter valued at approximately $207,000. Milestones Private Investment Advisors LLC purchased a new position in Bank of America during the 2nd quarter valued at about $233,000. American Trust raised its holdings in shares of Bank of America by 64.0% during the second quarter. American Trust now owns 7,939 shares of the financial services provider's stock valued at $376,000 after purchasing an additional 3,099 shares during the last quarter. PVG Asset Management Corp bought a new position in shares of Bank of America in the second quarter worth approximately $217,000. Finally, Evolution Wealth Management Inc. bought a new position in Bank of America during the second quarter valued at $281,000. 70.71% of the stock is owned by institutional investors.

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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