Bank of America (NYSE:BAC) Shares Down 3.6% - Here's What Happened

Key Points

• Bank of America (NYSE:BAC) shares fell by 3.6%, with approximately 15.4 million shares traded, a significant drop in volume compared to its average daily trading.
• Analysts have mixed ratings on BAC, with one sell rating, five hold ratings, and seventeen buy ratings, while the consensus target price is $50.13.
• The company recently declared an increased quarterly dividend of $0.28 per share, up from $0.26, indicating a 2.4% yield for investors.

Bank of America Corporation (NYSE:BAC) dropped 3.6% on Friday . The company traded as low as $45.32 and last traded at $45.57. Approximately 15,430,852 shares were traded during mid-day trading, a decline of 64% from the average daily volume of 42,790,469 shares. The stock had previously closed at $47.27.

Wall Street Analysts Forecast Growth

A number of analysts have commented on BAC shares. Hsbc Global Res cut shares of Bank of America from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 8th. Baird R W lowered shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. UBS Group raised their price target on shares of Bank of America from $46.00 to $50.00 and gave the stock a "buy" rating in a research note on Wednesday, April 16th. JPMorgan Chase & Co. decreased their price target on shares of Bank of America from $49.50 to $43.50 and set an "overweight" rating for the company in a research note on Thursday, April 3rd. Finally, TD Cowen started coverage on shares of Bank of America in a report on Thursday, May 15th. They set a "buy" rating and a $53.00 target price on the stock. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Trading Down 3.1%

The business has a 50 day moving average of $46.22 and a 200 day moving average of $43.81. 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 firm has a market cap of $345.13 billion, a price-to-earnings ratio of 13.36, a price-to-earnings-growth ratio of 1.87 and a beta of 1.30.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 EPS 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 for the quarter, compared to the consensus estimate of $26.79 billion. During the same period last year, the business posted $0.83 EPS. The company's revenue was up 4.3% on a year-over-year basis. On average, research analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 5th will be given a dividend of $0.28 per share. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. This represents a $1.12 dividend on an annualized basis and a yield of 2.4%. Bank of America's payout ratio is presently 30.41%.

Bank of America announced that its Board of Directors has authorized a stock buyback plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in 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 an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Bank of America

A number of institutional investors and hedge funds have recently modified their holdings of BAC. Gradient Investments LLC boosted its stake in Bank of America by 7.8% during the 1st quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock valued at $29,061,000 after purchasing an additional 50,296 shares during the period. Employees Retirement System of Texas raised its stake in Bank of America by 12.7% during the 4th quarter. Employees Retirement System of Texas now owns 158,455 shares of the financial services provider's stock worth $69,640,000 after buying an additional 17,880 shares during the period. Prosperity Wealth Management Inc. acquired a new stake in shares of Bank of America in the 1st quarter valued at about $998,000. Alpha Cubed Investments LLC increased its position in shares of Bank of America by 37.2% in the first quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock valued at $2,714,000 after acquiring an additional 17,619 shares during the last quarter. Finally, International Assets Investment Management LLC increased its position in Bank of America by 170.5% during the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock worth $9,951,000 after buying an additional 150,299 shares during the last quarter. 70.71% of the stock is 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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