Bank of America (NYSE:BAC) Price Target Raised to $59.00 at TD Cowen

Key Points

• TD Cowen raised its price target for Bank of America from $54.00 to $59.00, indicating a potential upside of 15.69% from the current stock price while maintaining a "buy" rating.
• Multiple analysts have upgraded Bank of America, with ratings reflecting a strong consensus of eighteen buy ratings and five hold ratings, suggesting growing confidence in the stock's performance.
• Bank of America reported a quarterly earnings per share of $0.89, beating analysts' expectations, and announced a significant $40 billion stock repurchase plan signaling its belief in the stock's undervaluation.

Bank of America (NYSE:BAC) had its price objective increased by equities researchers at TD Cowen from $54.00 to $59.00 in a research report issued on Friday,MarketScreener reports. The brokerage presently has a "buy" rating on the financial services provider's stock. TD Cowen's target price indicates a potential upside of 15.69% from the stock's current price.

Other equities analysts have also issued research reports about the stock. Wall Street Zen upgraded shares of Bank of America from a "sell" rating to a "hold" rating in a research report on Saturday, September 13th. Erste Group Bank upgraded Bank of America from a "hold" rating to a "buy" rating in a report on Friday. The Goldman Sachs Group set a $55.00 price target on Bank of America in a research report on Tuesday. Citigroup lifted their price objective on shares of Bank of America from $54.00 to $58.00 and gave the stock a "buy" rating in a research note on Friday, September 19th. Finally, Wells Fargo & Company increased their target price on shares of Bank of America from $56.00 to $60.00 and gave the company an "overweight" rating in a research note on Tuesday, September 16th. Eighteen 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, the company currently has an average rating of "Moderate Buy" and an average price target of $53.38.

Bank of America Stock Performance

Shares of NYSE BAC opened at $51.00 on Friday. Bank of America has a 52-week low of $33.06 and a 52-week 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 firm's fifty day moving average is $49.33 and its two-hundred day moving average is $45.19. The company has a market cap of $377.74 billion, a P/E ratio of 14.85, a P/E/G ratio of 1.97 and a beta of 1.33.

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

Bank of America announced that its board has approved a stock 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 buy up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insider Activity

In related news, insider James P. Demare sold 148,391 shares of Bank of America 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 transaction, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in BAC. Nicholas Hoffman & Company LLC. grew its position in shares of Bank of America by 121.0% in the 1st quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider's stock worth $2,589,000 after buying an additional 33,963 shares during the last quarter. Prosperity Wealth Management Inc. purchased a new position in Bank of America during the 1st quarter worth $998,000. Alpha Cubed Investments LLC increased its position in Bank of America by 37.2% during the 1st quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock valued at $2,714,000 after buying an additional 17,619 shares in the last quarter. International Assets Investment Management LLC raised its stake in Bank of America by 170.5% in the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock valued at $9,951,000 after buying an additional 150,299 shares during the last quarter. Finally, Commerce Bank boosted its holdings in Bank of America by 2.3% in the first quarter. Commerce Bank now owns 1,124,755 shares of the financial services provider's stock worth $46,936,000 after acquiring an additional 25,618 shares in the last quarter. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

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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