Bank of America (NYSE:BAC) Trading 2.2% Higher - Here's What Happened

Key Points

• Bank of America's stock price increased by 2.2%, reaching $49.32, although the trading volume was significantly lower at 11.9 million shares compared to the average of 41.9 million shares.
• Analysts have mixed views, with 17 giving a Buy rating, while others set varied price targets, including a decrease to $52 from HSBC and an increase to $57 from Oppenheimer.
• Bank of America announced a quarterly dividend increase from $0.26 to $0.28 per share, with a scheduled payment on September 26th, alongside a $40 billion stock buyback plan.

Bank of America Corporation (NYSE:BAC)'s share price traded up 2.2% on Friday . The company traded as high as $49.30 and last traded at $49.32. 11,900,978 shares changed hands during trading, a decline of 72% from the average session volume of 41,878,766 shares. The stock had previously closed at $48.26.

Analysts Set New Price Targets

BAC has been the subject of several analyst reports. Hsbc Global Res downgraded shares of Bank of America from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 8th. Robert W. Baird reissued a "neutral" rating and issued a $52.00 price target on shares of Bank of America in a research note on Friday, June 27th. Oppenheimer boosted their price target on shares of Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a research report on Wednesday, July 30th. TD Cowen assumed coverage on shares of Bank of America in a report on Thursday, May 15th. They issued a "buy" rating and a $53.00 price objective on the stock. Finally, Royal Bank Of Canada set a $53.00 target price on shares of Bank of America and gave the stock an "outperform" rating in a research note on Monday, June 30th. Seventeen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $50.13.

Bank of America Price Performance

The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14. The stock has a market capitalization of $366.53 billion, a PE ratio of 14.47, a PEG ratio of 1.88 and a beta of 1.31. The firm's 50-day moving average price is $46.95 and its 200-day moving average price is $43.84.

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 for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The company had revenue of ($22,273.00) million for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period in the prior year, the company posted $0.83 EPS. On average, equities analysts forecast that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be paid a dividend of $0.28 per share. This is a boost from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, September 5th. Bank of America's payout ratio is 32.75%.

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

Insiders Place Their Bets

In other Bank of America news, insider James P. Demare sold 148,391 shares of the firm'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 directly owned 223,407 shares in the company, valued at $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in BAC. Nicholas Hoffman & Company LLC. increased its holdings in Bank of America by 121.0% in the first quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider's stock valued at $2,589,000 after buying an additional 33,963 shares in the last quarter. Gradient Investments LLC increased its holdings in Bank of America by 7.8% in the first quarter. Gradient Investments LLC now owns 696,416 shares of the financial services provider's stock valued at $29,061,000 after buying an additional 50,296 shares in the last quarter. Prosperity Wealth Management Inc. purchased a new position in Bank of America in the first quarter valued at $998,000. Alpha Cubed Investments LLC increased its holdings in Bank of America by 37.2% in the first quarter. Alpha Cubed Investments LLC now owns 65,038 shares of the financial services provider's stock valued at $2,714,000 after buying an additional 17,619 shares in the last quarter. Finally, International Assets Investment Management LLC increased its holdings in Bank of America by 170.5% in the first quarter. International Assets Investment Management LLC now owns 238,473 shares of the financial services provider's stock valued at $9,951,000 after buying an additional 150,299 shares in the last quarter. Hedge funds and other institutional investors 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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