Bank of America (NYSE:BAC) Stock Price Down 1.8% - Here's What Happened

Key Points

• Bank of America stock decreased by 1.8%, closing at $50.67, with trading volume significantly below average.
• Several analysts have adjusted their price targets for Bank of America, with a consensus rating of "Moderate Buy" and a target price of $52.78.
• The company announced an increase in its quarterly dividend from $0.26 to $0.28 per share, reflecting its commitment to returning value to shareholders.

Shares of Bank of America Corporation (NYSE:BAC) traded down 1.8% during trading on Wednesday . The company traded as low as $50.56 and last traded at $50.67. 26,040,477 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 41,141,305 shares. The stock had previously closed at $51.59.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Oppenheimer cut their price objective on shares of Bank of America from $57.00 to $56.00 and set an "outperform" rating on the stock in a report on Tuesday, September 23rd. Robert W. Baird restated a "neutral" rating and issued a $52.00 target price on shares of Bank of America in a research note on Friday, June 27th. The Goldman Sachs Group set a $55.00 target price on shares of Bank of America in a research note on Tuesday. Deutsche Bank Aktiengesellschaft upped their target price on shares of Bank of America from $56.00 to $58.00 and gave the company a "buy" rating in a research note on Tuesday. Finally, Evercore ISI increased their price objective on shares of Bank of America from $49.00 to $55.00 and gave the stock an "outperform" rating in a research note on Tuesday. Seventeen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $52.78.

Bank of America Stock Down 1.8%

The stock has a market capitalization of $375.29 billion, a P/E ratio of 14.81, a PEG ratio of 2.03 and a beta of 1.34. 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 stock's fifty day moving average is $49.24 and its two-hundred day moving average is $45.09.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of ($22,273.00) million during the quarter, compared to analysts' expectations of $26.79 billion. Bank of America had a net margin of 14.81% and a return on equity of 10.25%. The firm's revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period last year, the firm posted $0.83 earnings per share. As a group, research analysts predict that Bank of America Corporation will post 3.7 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Friday, September 5th were paid a dividend of $0.28 per share. This is an increase from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Friday, September 5th. This represents a $1.12 annualized dividend and a yield of 2.2%. Bank of America's dividend payout ratio (DPR) is presently 32.75%.

Bank of America announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, July 23rd that permits the company to buyback $40.00 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 11.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction 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 sale, the insider directly owned 223,407 shares of the company's stock, valued at $10,180,656.99. The trade was a 39.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Bank of America

A number of institutional investors have recently modified their holdings of the stock. Hobart Private Capital LLC boosted its stake in shares of Bank of America by 5.3% during the 3rd quarter. Hobart Private Capital LLC now owns 7,542 shares of the financial services provider's stock valued at $389,000 after buying an additional 383 shares during the period. Rydar Equities Inc. acquired a new stake in shares of Bank of America during the 2nd quarter valued at $418,000. Summit Financial Wealth Advisors LLC grew its position in Bank of America by 5.4% in the second quarter. Summit Financial Wealth Advisors LLC now owns 14,465 shares of the financial services provider's stock worth $684,000 after acquiring an additional 741 shares in the last quarter. Canal Capital Management LLC bought a new stake in Bank of America in the second quarter worth approximately $207,000. Finally, Milestones Private Investment Advisors LLC bought a new stake in Bank of America in the second quarter worth approximately $233,000. Institutional investors and hedge funds own 70.71% of the company's stock.

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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