Bank of America (NYSE:BAC) Stock Price Up 1.6% - Time to Buy?

Key Points

• Bank of America shares rose 1.6% on Tuesday, closing near $56.79 after trading as high as $57.07, with volume below the daily average.
• Recent news around the bank was mostly positive: CEO Brian Moynihan said consumers are still spending despite inflation, and BofA expanded its AI-driven fraud detection and launched a fraud-prevention program.
• Fundamentals and analyst sentiment remain supportive, with the bank recently beating quarterly earnings estimates and posting stronger revenue, while Wall Street maintains a Moderate Buy consensus and a $61.06 target price.

Bank of America Corporation (NYSE:BAC) rose 1.6% on Tuesday . The stock traded as high as $57.07 and last traded at $56.7870. Approximately 33,103,107 shares traded hands during trading, a decline of 15% from the average daily volume of 39,162,754 shares. The stock had previously closed at $55.87.

Bank of America News Roundup

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

• Positive Sentiment: Bank of America CEO Brian Moynihan said consumers are still spending on discretionary items despite inflation and affordability concerns, which supports the bank’s outlook for card, deposit, and retail banking activity. Bank of America CEO Says Consumers Keep Spending Despite Affordability Concerns
• Positive Sentiment: BofA launched a nationwide “Scaminars” fraud-prevention program and expanded AI-enabled fraud detection, which may help reduce client losses and improve the bank’s reputation with retail customers. Bank Of America Targets Elder Fraud With AI And Nationwide Scaminars
• Positive Sentiment: Bank of America said the current AI stock rally still looks more like a “boom phase” than euphoria, reinforcing bullish sentiment around market activity and investor risk appetite that can benefit the bank’s markets and advisory businesses. AI Stock Rally Is in Boom Phase Not Euphoria, BofA Survey Shows
• Neutral Sentiment: BofA Securities maintained a Hold rating on PDD Holdings and trimmed a derivative-based stake in CA Immobilien Anlagen, but these items are not directly material to BAC’s fundamentals. Bank of America Securities Maintains Hold Rating on PDD Holdings (PDD) Stock Bank of America slightly trims derivative-based stake in CA Immobilien Anlagen
• Neutral Sentiment: BofA also announced a multi-year partnership renewal with the Kansas City Current, which is a brand/community initiative with limited near-term stock impact. Kansas City Current, BofA Announces Multi-Year Partnership Renewal Featuring Enhanced Community Efforts
• Negative Sentiment: Bank of America’s fund-flow commentary suggested investors are getting cautious after strong market gains, which could signal a softer near-term backdrop for risk assets and trading volumes. Chip index’s climb is giving fund managers a fear of heights, Bank of America finds

Wall Street Analyst Weigh In

BAC has been the topic of several recent research reports. Piper Sandler raised their target price on Bank of America from $53.00 to $59.00 and gave the company a "neutral" rating in a report on Thursday, April 16th. HSBC lifted their price objective on Bank of America from $55.00 to $60.00 and gave the stock a "buy" rating in a research note on Thursday, April 16th. JPMorgan Chase & Co. dropped their price objective on Bank of America from $61.50 to $57.50 and set an "overweight" rating on the stock in a research note on Tuesday, April 7th. Erste Group Bank lowered Bank of America from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 4th. Finally, Autonomous Res dropped their price objective on Bank of America from $62.00 to $54.00 and set a "neutral" rating on the stock in a research note on Monday, April 6th. Twenty-two investment 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, the company presently has an average rating of "Moderate Buy" and a consensus target price of $61.06.

Bank of America Trading Up 1.6%

The firm has a market capitalization of $402.99 billion, a price-to-earnings ratio of 14.06, a P/E/G ratio of 0.95 and a beta of 1.19. The business has a 50-day moving average of $52.42 and a two-hundred day moving average of $52.44. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 1.18.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data 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 company had revenue of $30.27 billion for the quarter, compared to the consensus estimate of $29.72 billion. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The company's quarterly revenue was up 10.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.90 earnings per share. Research analysts predict that Bank of America Corporation will post 4.45 EPS for the current fiscal year.

Bank of America Dividend Announcement

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

Insider Activity at Bank of America

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the completion of the sale, the insider owned 1,373,397 shares in the company, valued at approximately $72,803,774.97. The trade was a 8.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.27% of the company's stock.

Institutional Trading of Bank of America

Several institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC grew its holdings in shares of Bank of America by 30.0% in the 4th quarter. Brighton Jones LLC now owns 108,872 shares of the financial services provider's stock valued at $4,785,000 after buying an additional 25,143 shares during the period. Sivia Capital Partners LLC boosted its stake in Bank of America by 40.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 21,401 shares of the financial services provider's stock worth $1,013,000 after purchasing an additional 6,174 shares during the period. Jump Financial LLC boosted its stake in Bank of America by 38.4% in the 2nd quarter. Jump Financial LLC now owns 65,677 shares of the financial services provider's stock worth $3,108,000 after purchasing an additional 18,227 shares during the period. Nebula Research & Development LLC acquired a new position in Bank of America in the 2nd quarter worth $1,396,000. Finally, Vivaldi Capital Management LP boosted its stake in shares of Bank of America by 4.2% during the 2nd quarter. Vivaldi Capital Management LP now owns 8,819 shares of the financial services provider's stock worth $417,000 after buying an additional 355 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Bank of America Company Profile

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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