Barclays Boosts Bank of America (NYSE:BAC) Price Target to $59.00

Key Points

• Barclays has increased its price target for Bank of America (NYSE:BAC) from $54.00 to $59.00, indicating a potential upside of 12.90% from the current stock price, and maintains an "overweight" rating on the stock.
• Several other analysts, including Goldman Sachs and Wolfe Research, have also raised their price targets for Bank of America, reflecting a generally positive outlook with an average rating of "Moderate Buy".
• Bank of America recently reported quarterly earnings of $1.06 per share, surpassing the consensus estimate, and has initiated a strong share buyback plan worth $40 billion, suggesting management believes its shares are undervalued.

Bank of America (NYSE:BAC) had its target price lifted by analysts at Barclays from $54.00 to $59.00 in a research note issued on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the financial services provider's stock. Barclays's price target would suggest a potential upside of 12.90% from the stock's current price.

A number of other research analysts have also recently commented on BAC. The Goldman Sachs Group boosted their price target on Bank of America from $56.00 to $59.00 and gave the stock a "buy" rating in a report on Friday, October 3rd. Wolfe Research upped their target price on Bank of America from $57.00 to $58.00 and gave the stock an "outperform" rating in a report on Tuesday, October 7th. Piper Sandler set a $55.00 price target on Bank of America and gave the company a "neutral" rating in a research note on Thursday. Oppenheimer reduced their price target on Bank of America from $57.00 to $56.00 and set an "outperform" rating for the company in a research report on Tuesday, September 23rd. Finally, Erste Group Bank raised Bank of America from a "hold" rating to a "buy" rating in a report on Friday, October 3rd. Twenty-one research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $55.45.

Bank of America Stock Performance

Shares of BAC stock opened at $52.26 on Thursday. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. The firm has a market capitalization of $387.06 billion, a price-to-earnings ratio of 15.28, a PEG ratio of 1.94 and a beta of 1.33. The stock has a fifty day moving average of $49.89 and a 200 day moving average of $45.67. Bank of America has a 52 week low of $33.06 and a 52 week high of $52.88.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings results on Wednesday, October 15th. The financial services provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.13. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm had revenue of $28.09 billion during the quarter, compared to the consensus estimate of $27.05 billion. During the same period last year, the company earned $0.81 earnings per share. The company's revenue was up 10.8% on a year-over-year basis. As a group, research analysts expect that Bank of America will post 3.7 earnings per share for the current year.

Bank of America announced that its board has initiated a share buyback plan on Wednesday, July 23rd that permits the company to buyback $40.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Insider Transactions at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction dated Friday, August 1st. The stock was 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 owned 223,407 shares of the company's stock, valued at $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.30% of the company's stock.

Institutional Trading of Bank of America

Several large investors have recently added to or reduced their stakes in the business. Nova Wealth Management Inc. boosted its position in shares of Bank of America by 75.2% in the second quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock worth $25,000 after buying an additional 227 shares during the period. Quaker Wealth Management LLC grew its position in Bank of America by 246.5% during the second quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider's stock worth $25,000 after buying an additional 880 shares in the last quarter. RMG Wealth Management LLC acquired a new stake in Bank of America during the second quarter valued at approximately $28,000. Steph & Co. boosted its holdings in Bank of America by 224.3% during the third quarter. Steph & Co. now owns 548 shares of the financial services provider's stock valued at $28,000 after purchasing an additional 379 shares in the last quarter. Finally, CGC Financial Services LLC raised its stake in shares of Bank of America by 585.4% in the second quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock valued at $29,000 after acquiring an additional 521 shares during the last quarter. 70.71% of the stock is currently 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.

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