Bank of America (NYSE:BAC) Stock Price Up 2.9% - Still a Buy?

Key Points

• Bank of America shares rose by 2.9%, closing at $47.49, amidst a trading volume that was 80% lower than average.
• Consensus ratings indicate a "Moderate Buy" for Bank of America, with a varied range of price targets set by analysts, including a high of $54.00 and a low of $42.00.
• The company announced a quarterly dividend increase to $0.28 per share, along with a $40 billion share buyback program indicating confidence in the stock's value.

Bank of America Corporation (NYSE:BAC) shares traded up 2.9% on Tuesday . The company traded as high as $47.32 and last traded at $47.49. 8,526,535 shares were traded during trading, a decline of 80% from the average session volume of 42,437,391 shares. The stock had previously closed at $46.16.

Analysts Set New Price Targets

BAC has been the topic of several recent research reports. UBS Group upped their price target on shares of Bank of America from $46.00 to $50.00 and gave the company a "buy" rating in a report on Wednesday, April 16th. Cowen began coverage on shares of Bank of America in a research note on Wednesday, May 14th. They set a "buy" rating on the stock. Piper Sandler lowered their target price on shares of Bank of America from $45.00 to $42.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 16th. Barclays lowered their target price on shares of Bank of America from $58.00 to $54.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 16th. Finally, Truist Financial increased their target price on shares of Bank of America from $51.00 to $53.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have issued a buy rating to the company. According to data from MarketBeat, Bank of America has a consensus rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Stock Performance

The firm's 50 day moving average price is $46.47 and its two-hundred day moving average price is $43.74. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. The firm has a market cap of $351.50 billion, a PE ratio of 13.87, a PEG ratio of 1.79 and a beta of 1.31.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, beating 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 during the quarter, compared to analysts' expectations of $26.79 billion. During the same quarter in the prior year, the company posted $0.83 EPS. The business's revenue for the quarter was up 4.3% on a year-over-year basis. On average, research analysts forecast that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Bank of America's previous quarterly dividend of $0.26. Bank of America's dividend payout ratio is 30.41%.

Bank of America declared that its board has authorized a share buyback program on Wednesday, July 23rd that authorizes the company to buyback $40.00 billion in shares. This buyback authorization authorizes the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the stock in a transaction that occurred 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 completion of the transaction, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Bank of America

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Nova Wealth Management Inc. boosted its position in 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 buying an additional 227 shares during the period. Quaker Wealth Management LLC boosted its position 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 buying an additional 880 shares during the period. RMG Wealth Management LLC purchased a new position in Bank of America in the 2nd quarter valued at approximately $28,000. CGC Financial Services LLC boosted its position 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 buying an additional 521 shares during the period. Finally, Vega Investment Solutions purchased a new position in Bank of America in the 4th quarter valued at approximately $30,000. Hedge funds and other 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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