Bank of America (NYSE:BAC) Shares Up 1.1% - Still a Buy?

Key Points

• Bank of America shares rose 1.1% on Thursday, trading around $55.17, after moving as high as $55.31 during the session.
• The most important headline risk is a Justice Department subpoena/investigation into alleged “debanking”, which could bring legal, compliance, and reputational pressure on BAC.
• Despite that overhang, analysts remain constructive: 22 analysts rate the stock a Buy and the average target price is about $61.06, while the company also recently beat earnings expectations and maintained a 2.0% dividend yield.

Bank of America Corporation (NYSE:BAC) shares traded up 1.1% during trading on Thursday . The company traded as high as $55.31 and last traded at $55.1650. 31,430,156 shares traded hands during trading, a decline of 20% from the average session volume of 39,423,699 shares. The stock had previously closed at $54.54.

More Bank of America News

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank of America outlined new products for clients, including real-time global payments, pay-over-time card plans, an expanded rewards program, and credit-monitoring tools, which could lift fee revenue and deepen customer relationships. Bank of America Introduces New Ways to Reward Clients, Manage Payments and Track Credit
• Positive Sentiment: The bank highlighted surging demand in Asia Pacific for AI-driven treasury, FX, and payment solutions, reinforcing the idea that its corporate banking and transaction-services businesses still have growth momentum. Bank of America Highlights Surging Demand for AI-Led Treasury, Fx Solutions in Asia Pacific
• Positive Sentiment: Erste Group raised its FY2027 EPS estimate for Bank of America (BAC), signaling continued confidence in longer-term earnings power. Research note on Bank of America
• Positive Sentiment: The company also declared preferred stock dividends, a routine capital-return update that may reassure income-focused investors about balance-sheet stability. Bank of America Declares Preferred Stock Dividends Payable in July and August 2026
• Neutral Sentiment: Bank of America’s role in World Cup-related marketing and consumer promotions could help brand visibility, but the immediate financial impact is unclear. Bank Of America World Cup Push Tests Marketing Payoff For Investors
• Neutral Sentiment: Commentary around BAC’s trading revenue being better than expected is supportive, but it is not a fresh company release and does not change the near-term story by itself. Bank of America's trading revenue is growing better than expected — Co-President DeMare
• Negative Sentiment: The biggest overhang is the Justice Department’s subpoena/investigation into alleged “debanking,” which could create legal, compliance, and reputational risk for BAC. US Justice Department subpoenas major banks over alleged 'debanking', WSJ reports

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Argus lifted their target price on shares of Bank of America from $59.00 to $62.00 and gave the stock a "buy" rating in a report on Thursday, April 16th. Daiwa Securities Group lifted their target price on shares of Bank of America from $58.00 to $61.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. Robert W. Baird lifted their target price on shares of Bank of America from $56.00 to $58.00 and gave the stock a "neutral" rating in a report on Thursday, April 16th. HSBC lifted 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. Finally, Oppenheimer lifted their target price on shares of Bank of America from $58.00 to $61.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. Twenty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $61.06.

Bank of America Trading Up 1.1%

The company's fifty day simple moving average is $52.03 and its two-hundred day simple moving average is $52.36. 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 company has a market capitalization of $391.48 billion, a price-to-earnings ratio of 13.65, a price-to-earnings-growth ratio of 0.92 and a beta of 1.18.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.11. The company had revenue of $30.27 billion for the quarter, compared to analyst estimates of $29.72 billion. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The business's revenue for the quarter was up 10.7% compared to the same quarter last year. During the same period last year, the business posted $0.90 earnings per share. Research analysts forecast that Bank of America Corporation will post 4.45 earnings per share for the current fiscal year.

Bank of America Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be issued a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Friday, June 5th. Bank of America's dividend payout ratio is 27.72%.

Insider Buying and Selling at Bank of America

In other news, insider Geoffrey S. Greener sold 126,756 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total value of $6,719,335.56. Following the completion of the transaction, the insider owned 1,373,397 shares in the company, valued at $72,803,774.97. This represents a 8.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.27% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BAC. Abound Financial LLC acquired a new position in shares of Bank of America in the fourth quarter valued at approximately $26,000. Wiser Advisor Group LLC acquired a new position in shares of Bank of America in the third quarter valued at approximately $27,000. Legacy Bridge LLC boosted its holdings in shares of Bank of America by 182.3% in the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider's stock valued at $28,000 after buying an additional 330 shares during the period. CrossGen Wealth LLC acquired a new position in shares of Bank of America in the fourth quarter valued at approximately $30,000. Finally, Joseph Group Capital Management acquired a new stake in shares of Bank of America in the fourth quarter valued at approximately $32,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Company Profile

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.

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