Bank of America (NYSE:BAC) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• Bank of America's stock price target was raised by JPMorgan Chase & Co. from $51.00 to $55.00, indicating a potential upside of approximately 10% from its previous close.
• Multiple analysts, including those from TD Cowen and Citigroup, have also raised their price targets on the stock, contributing to a consensus rating of “Moderate Buy”.
• Bank of America initiated a $40 billion share buyback program, underscoring management's confidence in the stock's value.

Bank of America (NYSE:BAC) had its price objective hoisted by equities research analysts at JPMorgan Chase & Co. from $51.00 to $55.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The firm presently has an "overweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 9.97% from the stock's previous close.

Several other research analysts also recently issued reports on the company. TD Cowen upped their price objective on Bank of America from $54.00 to $59.00 and gave the stock a "buy" rating in a report on Friday, October 3rd. Citigroup increased their price target on Bank of America from $54.00 to $58.00 and gave the company a "buy" rating in a research note on Friday, September 19th. The Goldman Sachs Group increased their price target on Bank of America from $56.00 to $59.00 and gave the company a "buy" rating in a research note on Friday, October 3rd. Evercore ISI increased their price target on Bank of America from $49.00 to $55.00 and gave the company an "outperform" rating in a research note on Tuesday, September 30th. Finally, Oppenheimer cut their price target on Bank of America from $57.00 to $56.00 and set an "outperform" rating on the stock in a research note on Tuesday, September 23rd. Twenty-one analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $54.64.

Bank of America Stock Up 0.4%

NYSE BAC opened at $50.01 on Friday. The firm has a market cap of $370.45 billion, a PE ratio of 14.62, a price-to-earnings-growth ratio of 1.93 and a beta of 1.33. Bank of America has a one year low of $33.06 and a one year high of $52.88. The stock's 50 day simple moving average is $49.55 and its 200 day simple moving average is $45.46. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share (EPS) for the quarter, topping 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 firm had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter in the prior year, the business earned $0.83 EPS. The business's revenue for the quarter was up 4.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Bank of America will post 3.7 earnings per share for the current fiscal year.

Bank of America declared that its board has initiated a share buyback program on Wednesday, July 23rd that permits the company to buyback $40.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management 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 stock in a transaction dated Friday, August 1st. The stock was 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 in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Bank of America

Large investors have recently added to or reduced their stakes in the company. Nova Wealth Management Inc. grew its holdings in shares of Bank of America by 75.2% in the 2nd quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 227 shares in the last quarter. Quaker Wealth Management LLC lifted its stake in Bank of America by 246.5% in the 2nd quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 880 shares during the last quarter. RMG Wealth Management LLC acquired a new stake in Bank of America in the 2nd quarter valued at about $28,000. Steph & Co. lifted its stake in Bank of America by 224.3% in the 3rd quarter. Steph & Co. now owns 548 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 379 shares during the last quarter. Finally, CGC Financial Services LLC lifted its stake in Bank of America by 585.4% in the 2nd quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 521 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

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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