Bank of America Q4 EPS Forecast Boosted by Zacks Research

Key Points

• Zacks Research has increased its Q4 2025 EPS estimate for Bank of America from $0.92 to $0.96 and also issued earnings estimates for Q2 2026 at $1.02 EPS, Q1 2027 at $1.04 EPS, and Q2 2027 at $1.22 EPS.
• The company has initiated a $40 billion stock repurchase plan, indicating the board believes the stock is undervalued, and announced an increase in its quarterly dividend from $0.26 to $0.28 per share.
• Despite some downgrades from analysts, the consensus rating for Bank of America remains a "Moderate Buy" with an average target price of $50.13.

Bank of America Corporation (NYSE:BAC - Free Report) - Zacks Research increased their Q4 2025 earnings per share (EPS) estimates for shares of Bank of America in a report issued on Wednesday, August 6th. Zacks Research analyst R. Department now expects that the financial services provider will post earnings of $0.96 per share for the quarter, up from their previous estimate of $0.92. The consensus estimate for Bank of America's current full-year earnings is $3.70 per share. Zacks Research also issued estimates for Bank of America's Q2 2026 earnings at $1.02 EPS, Q1 2027 earnings at $1.04 EPS and Q2 2027 earnings at $1.22 EPS.

Several other research analysts have also recently weighed in on BAC. Baird R W cut Bank of America from a "strong-buy" rating to a "hold" rating in a report on Friday, June 27th. Argus lowered their target price on Bank of America from $53.00 to $47.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Barclays reduced their price target on shares of Bank of America from $58.00 to $54.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 16th. Wall Street Zen lowered shares of Bank of America from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Finally, Piper Sandler reduced their price target on shares of Bank of America from $45.00 to $42.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 16th. One investment 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. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $50.13.

Bank of America Trading Up 2.5%

Shares of Bank of America stock opened at $46.03 on Monday. The stock has a market cap of $340.94 billion, a P/E ratio of 13.46, a P/E/G ratio of 1.79 and a beta of 1.31. The stock's 50 day simple moving average is $46.43 and its 200-day simple moving average is $43.74. Bank of America has a 1-year low of $33.06 and a 1-year high of $49.31. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share 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 analysts' expectations 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 revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.83 EPS.

Hedge Funds Weigh In On Bank of America

A number of institutional investors and hedge funds have recently modified their holdings of BAC. Geode Capital Management LLC boosted 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 acquiring an additional 403,652 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Bank of America by 10.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider's stock valued at $5,381,126,000 after acquiring an additional 11,691,451 shares in the last quarter. Capital World Investors boosted its stake in Bank of America by 23.9% in the fourth 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. Northern Trust Corp boosted its stake in Bank of America by 17.2% in 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. Finally, Bank of New York Mellon Corp boosted its stake in Bank of America by 1.3% in the first quarter. Bank of New York Mellon Corp now owns 60,417,407 shares of the financial services provider's stock valued at $2,521,218,000 after acquiring an additional 803,570 shares in the last quarter. Institutional investors and hedge funds own 70.71% of the company's stock.

Insider Activity at Bank of America

In related news, insider James P. Demare sold 148,391 shares of the business's stock in a transaction 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 in the company, valued at approximately $10,180,656.99. The trade was a 39.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Bank of America declared that its board has initiated a stock repurchase plan on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be paid a dividend of $0.28 per share. The ex-dividend date is Friday, September 5th. This is an increase 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 2.4%. Bank of America's payout ratio is presently 30.41%.

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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