Bank of America (NYSE:BAC) Stock Price Expected to Rise, The Goldman Sachs Group Analyst Says

Key Points

• The Goldman Sachs Group has raised its target price for Bank of America (NYSE:BAC) from $56.00 to $59.00, indicating a potential upside of 15.69% from the current stock price and maintaining a "buy" rating.
• Bank of America has initiated a significant $40 billion share buyback program, signaling management's belief that its shares are undervalued.
• Despite various ratings from analysts, the average consensus rating for Bank of America remains a "Moderate Buy" with an average target price of $53.38.

Bank of America (NYSE:BAC) had its target price hoisted by equities researchers at The Goldman Sachs Group from $56.00 to $59.00 in a research report issued on Friday,MarketScreener reports. The brokerage currently has a "buy" rating on the financial services provider's stock. The Goldman Sachs Group's target price would indicate a potential upside of 15.69% from the stock's current price.

A number of other equities analysts have also recently issued reports on BAC. Robert W. Baird restated a "neutral" rating and issued a $52.00 price objective on shares of Bank of America in a research note on Friday, June 27th. Wall Street Zen upgraded shares of Bank of America from a "sell" rating to a "hold" rating in a research note on Saturday, September 13th. Phillip Securities downgraded Bank of America from a "strong-buy" rating to a "moderate buy" rating in a report on Friday, July 25th. Baird R W cut Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Finally, TD Cowen boosted their price target on Bank of America from $54.00 to $59.00 and gave the company a "buy" rating in a research note on Friday. Eighteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $53.38.

Bank of America Stock Performance

Shares of NYSE BAC opened at $51.00 on Friday. Bank of America has a 12 month low of $33.06 and a 12 month high of $52.88. The company has a market cap of $377.74 billion, a P/E ratio of 14.85, a P/E/G ratio of 1.97 and a beta of 1.33. The business's 50 day moving average is $49.33 and its two-hundred day moving average is $45.19. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14.

Bank of America (NYSE:BAC - Get Free Report) last announced 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 net margin of 14.81% and a return on equity of 10.25%. The business had revenue of ($22,273.00) million for the quarter, compared to the consensus estimate of $26.79 billion. During the same quarter last year, the company posted $0.83 earnings per share. Bank of America's quarterly revenue was up 4.3% on a year-over-year basis. On average, equities analysts expect that Bank of America will post 3.7 EPS for the current year.

Bank of America declared that its Board of Directors has initiated a share buyback program on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to buy up to 11.1% of its stock through open market purchases. Stock buyback programs are typically 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 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 value of $6,762,177.87. Following the completion of the sale, 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 Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Bank of America

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