Bank of America (NYSE:BAC) Shares Up 1.7% - Should You Buy?

Key Points

• Bank of America (NYSE:BAC) shares rose 1.7%, reaching $50.32, despite a significant decline in trading volume compared to the average session.
• Analysts have set various target prices for Bank of America, with a consensus rating of "Moderate Buy" and a price target averaging $50.39; 16 analysts rated it as a buy.
• The company announced an increase in its quarterly dividend from $0.26 to $0.28 per share, representing a 2.2% yield and a total annualized dividend of $1.12.

Bank of America Corporation (NYSE:BAC) shares traded up 1.7% during trading on Tuesday . The stock traded as high as $50.29 and last traded at $50.32. 7,889,765 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 41,750,258 shares. The stock had previously closed at $49.46.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on BAC shares. Royal Bank Of Canada set a $53.00 target price on Bank of America and gave the company an "outperform" rating in a report on Monday, June 30th. Truist Financial lifted their price target on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Baird R W cut Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Oppenheimer boosted their target price on shares of Bank of America from $55.00 to $57.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 30th. Finally, Cowen initiated coverage on shares of Bank of America in a research note on Wednesday, May 14th. They issued a "buy" rating on the stock. Sixteen 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 company presently has a consensus rating of "Moderate Buy" and a consensus price target of $50.39.

Bank of America Price Performance

The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. The company has a market cap of $373.19 billion, a P/E ratio of 14.73, a PEG ratio of 1.93 and a beta of 1.34. The firm's 50-day moving average is $47.99 and its two-hundred day moving average is $44.10.

Bank of America (NYSE:BAC - Get Free Report) last posted its 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 net margin of 14.81% and a return on equity of 10.25%. The company had revenue of ($22,273.00) million during the quarter, compared to analysts' expectations of $26.79 billion. During the same quarter in the prior year, the company posted $0.83 earnings per share. Bank of America's revenue for the quarter was up 4.3% compared to the same quarter last year. Analysts anticipate that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Increases Dividend

The firm also recently disclosed 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 represents a $1.12 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's payout ratio is 32.75%.

Bank of America declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to purchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its stock is undervalued.

Insider Activity

In related news, insider James P. Demare sold 148,391 shares of the company's 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 completion of the transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.30% of the stock is owned by company insiders.

Institutional Trading of Bank of America

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Wealth Advisory Solutions LLC lifted its stake in Bank of America by 4.4% during the second quarter. Wealth Advisory Solutions LLC now owns 5,126 shares of the financial services provider's stock valued at $243,000 after purchasing an additional 214 shares during the last quarter. Ballast Advisors LLC boosted its stake in Bank of America by 4.1% in the 2nd quarter. Ballast Advisors LLC now owns 5,489 shares of the financial services provider's stock worth $260,000 after purchasing an additional 218 shares during the period. AllSquare Wealth Management LLC boosted its stake in Bank of America by 1.0% in the 2nd quarter. AllSquare Wealth Management LLC now owns 23,072 shares of the financial services provider's stock worth $1,092,000 after purchasing an additional 220 shares during the period. Cyndeo Wealth Partners LLC boosted its stake in Bank of America by 0.8% in the 2nd quarter. Cyndeo Wealth Partners LLC now owns 28,394 shares of the financial services provider's stock worth $1,344,000 after purchasing an additional 221 shares during the period. Finally, Wealth Preservation Advisors LLC grew its position in Bank of America by 48.7% in the second quarter. Wealth Preservation Advisors LLC now owns 681 shares of the financial services provider's stock worth $32,000 after acquiring an additional 223 shares in the last quarter. 70.71% of the stock is currently 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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