Bank of America (NYSE:BAC) Trading Down 1.1% - Here's Why

Key Points

• Bank of America (NYSE:BAC) stock has decreased by 1.1% during recent trading, closing at $47.18, with a significant drop in trading volume.
• Analysts generally have a positive outlook on the stock, with the average rating being "Moderate Buy" and a consensus price target of $50.13.
• The company announced a boost in its quarterly dividend from $0.26 to $0.28 per share, reflecting a dividend yield of 2.4%.

Bank of America Corporation (NYSE:BAC) traded down 1.1% during trading on Friday . The stock traded as low as $47.04 and last traded at $47.18. 7,843,022 shares traded hands during trading, a decline of 81% from the average session volume of 42,158,387 shares. The stock had previously closed at $47.71.

Analyst Ratings Changes

A number of research firms recently issued reports on BAC. Morgan Stanley boosted their target price on shares of Bank of America from $47.00 to $49.00 and gave the company an "overweight" rating in a research report on Monday, June 23rd. HSBC downgraded shares of Bank of America from a "buy" rating to a "hold" rating and lifted their price target for the company from $47.00 to $51.00 in a research report on Monday, July 7th. Oppenheimer raised their price objective on shares of Bank of America from $55.00 to $57.00 and gave the company an "outperform" rating in a research note on Wednesday, July 30th. Truist Financial raised their price target on shares of Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 9th. Finally, Royal Bank Of Canada set a $53.00 price objective on Bank of America and gave the stock an "outperform" rating in a report on Monday, June 30th. One analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have given a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $50.13.

Bank of America Stock Down 1.4%

The firm has a market capitalization of $348.53 billion, a PE ratio of 13.77, a PEG ratio of 1.83 and a beta of 1.31. 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 company has a fifty day simple moving average of $46.65 and a two-hundred day simple moving average of $43.79.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, topping the consensus estimate of $0.86 by $0.03. The business had revenue of ($22,273.00) million for the quarter, compared to analyst estimates of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. The business's quarterly revenue was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.83 EPS. Analysts forecast that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Increases Dividend

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

Bank of America declared that its Board of Directors has approved a stock buyback plan on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its stock is undervalued.

Insider Activity

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 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 $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On Bank of America

A number of institutional investors have recently modified their holdings of BAC. Geode Capital Management LLC raised its stake in Bank of America by 0.3% in the second quarter. Geode Capital Management LLC now owns 148,176,755 shares of the financial services provider's stock valued at $6,982,863,000 after buying an additional 403,652 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Bank of America by 10.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock worth $5,381,126,000 after acquiring an additional 11,691,451 shares during the period. Norges Bank purchased a new position in Bank of America during the second quarter worth approximately $5,091,641,000. Capital World Investors lifted its holdings in shares of Bank of America by 23.9% during the 4th quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider's stock valued at $3,876,853,000 after acquiring an additional 17,031,143 shares in the last quarter. Finally, Northern Trust Corp grew its stake in shares of Bank of America by 17.2% during the fourth quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider's stock valued at $2,985,785,000 after acquiring an additional 9,980,859 shares in the last quarter. 70.71% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.