Bank of America (NYSE:BAC) Shares Up 2.1% - Here's What Happened

Key Points

• Bank of America shares rose 2.1% on Monday, trading as high as $57.73 after closing at $56.20 the prior day, with volume slightly below average.
• Investors were encouraged by more hawkish Federal Reserve expectations, as Bank of America economists now see three rate hikes in 2026 and no Fed rate cuts until 2028, a backdrop that could support bank lending margins.
• Analyst sentiment remains generally positive: BAC reported strong quarterly earnings that beat estimates, and Wall Street currently rates the stock a Moderate Buy with a consensus target price of about $61.06.

Bank of America Corporation (NYSE:BAC) traded up 2.1% on Monday . The stock traded as high as $57.73 and last traded at $57.3650. Approximately 38,080,362 shares were traded during trading, a decline of 4% from the average daily volume of 39,518,531 shares. The stock had previously closed at $56.20.

More Bank of America News

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

• Positive Sentiment: Bank of America’s economists now expect the Federal Reserve to deliver three rate hikes in 2026, a more hawkish outlook that could help banks like BAC earn more on loans if rates stay elevated. BofA now sees no Fed rate cuts until 2028
• Positive Sentiment: That same rate outlook is being echoed across market coverage, reinforcing expectations that Bank of America sees a less dovish Fed path than investors previously assumed. Prepare for Three Rate Hikes in 2026, Says Bank of America
• Positive Sentiment: Separate coverage highlighted Bank of America as one of Berkshire Hathaway’s top financial holdings, which can bolster investor sentiment by underscoring Warren Buffett’s long-term confidence in BAC. Bank of America Corporation (BAC): One of the Top Financial Stocks According to Berkshire Hathaway
• Neutral Sentiment: Analyst commentary also raised the question of whether BAC’s low valuation is a bargain or a warning sign, noting cheaper pricing versus peers but also concerns about costs and mixed earnings visibility. Is Bank of America Stock's Low Valuation a Bargain or a Warning Sign?

Analyst Ratings Changes

Several brokerages have commented on BAC. JPMorgan Chase & Co. dropped their price target on Bank of America from $61.50 to $57.50 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Royal Bank Of Canada restated an "outperform" rating and issued a $59.00 price objective on shares of Bank of America in a research note on Thursday, April 16th. Weiss Ratings reiterated a "buy (b)" rating on shares of Bank of America in a research note on Friday, April 24th. Daiwa Securities Group increased their price target on shares of Bank of America from $58.00 to $61.00 and gave the company an "overweight" rating in a report on Tuesday, April 28th. Finally, Jefferies Financial Group raised their price target on shares of Bank of America from $60.00 to $65.00 and gave the stock a "buy" rating in a research report on Thursday, April 16th. Twenty-two equities research 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.com, Bank of America currently has an average rating of "Moderate Buy" and a consensus target price of $61.06.

Bank of America Stock Up 2.1%

The business has a 50 day moving average of $52.91 and a 200 day moving average of $52.53. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.81 and a quick ratio of 0.81. The firm has a market capitalization of $407.10 billion, a price-to-earnings ratio of 14.20, a price-to-earnings-growth ratio of 0.95 and a beta of 1.19.

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, beating analysts' consensus estimates of $1.00 by $0.11. The business had revenue of $30.27 billion for the quarter, compared to analysts' expectations of $29.72 billion. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The firm's revenue for the quarter was up 10.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.90 earnings per share. On average, equities analysts anticipate that Bank of America Corporation will post 4.45 EPS for the current year.

Bank of America Announces Dividend

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

Insiders Place Their Bets

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the completion of the transaction, the insider directly 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 legal filing with the SEC, which can be accessed through this link. 0.27% of the stock is owned by company insiders.

Institutional Investors Weigh In On Bank of America

Hedge funds have recently made changes to their positions in the company. Abound Financial LLC acquired a new position in shares of Bank of America in the 4th quarter worth approximately $26,000. Wiser Advisor Group LLC acquired a new stake in Bank of America during the 3rd quarter valued at $27,000. Legacy Bridge LLC raised its position in Bank of America by 182.3% in the 4th quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 330 shares during the last quarter. CrossGen Wealth LLC acquired a new position in Bank of America in the fourth quarter worth $30,000. Finally, Joseph Group Capital Management bought a new stake in shares of Bank of America during the fourth quarter worth $32,000. Institutional investors and hedge funds own 70.71% of the company's stock.

About Bank of America

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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