Bank of America Corporation (NYSE:BAC) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Bank of America, with 21 buy ratings and six holds among 27 brokerages. The average 12-month price target is $64.08, implying modest upside from the reported $62.63 share price.
• Bank of America exceeded quarterly expectations, reporting $1.21 in EPS and $31.56 billion in revenue, while revenue increased 19.6% year over year. The company also raised its quarterly dividend to $0.32 per share, for a 2.0% annualized yield.
• Institutional investors own 70.71% of the stock, although Berkshire Hathaway’s continued position reductions represent a potential negative signal. Meanwhile, investors are watching possible benefits from higher interest rates and Bank of America’s planned 2027 stablecoin initiative.

Shares of Bank of America Corporation (NYSE:BAC) have been assigned a consensus rating of "Moderate Buy" from the twenty-seven brokerages that are currently covering the company, MarketBeat reports. Six investment analysts have rated the stock with a hold recommendation and twenty-one have issued a buy recommendation on the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $64.0833.

Several research analysts have recently weighed in on BAC shares. Morgan Stanley upped their price target on shares of Bank of America from $61.00 to $67.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Robert W. Baird boosted their price objective on shares of Bank of America from $58.00 to $62.00 and gave the company a "neutral" rating in a research report on Wednesday, July 15th. Royal Bank Of Canada upped their target price on shares of Bank of America from $59.00 to $65.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Citigroup increased their target price on Bank of America from $62.00 to $66.00 and gave the stock a "buy" rating in a report on Tuesday, June 23rd. Finally, Evercore set a $63.00 price target on Bank of America and gave the company an "outperform" rating in a research note on Monday, July 6th.

Institutional Investors Weigh In On Bank of America

Several institutional investors have recently bought and sold shares of BAC. California State Teachers Retirement System raised its holdings in shares of Bank of America by 5,515.7% in the 2nd quarter. California State Teachers Retirement System now owns 586,149,556 shares of the financial services provider's stock valued at $33,398,802,000 after purchasing an additional 575,711,933 shares during the period. Norges Bank bought a new position in Bank of America during the fourth quarter worth about $4,774,210,000. Bank of New York Mellon Corp increased its position in Bank of America by 5.4% during the fourth quarter. Bank of New York Mellon Corp now owns 57,619,317 shares of the financial services provider's stock worth $3,169,062,000 after buying an additional 2,929,779 shares during the last quarter. Fisher Asset Management LLC raised its stake in Bank of America by 2.1% in the fourth quarter. Fisher Asset Management LLC now owns 53,783,821 shares of the financial services provider's stock valued at $2,958,110,000 after buying an additional 1,105,833 shares during the period. Finally, Deutsche Bank AG lifted its position in shares of Bank of America by 5.9% in the fourth quarter. Deutsche Bank AG now owns 47,172,503 shares of the financial services provider's stock valued at $2,594,488,000 after buying an additional 2,611,776 shares during the last quarter. Institutional investors own 70.71% of the company's stock.

Key Stories Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Bank stocks are attracting capital as investors anticipate rising rates, which could support lending revenue and net interest income. Concerns about AI valuations are also encouraging a shift toward established financial companies. Expectations of Rising Rates and Worries About AI Have Investors Piling Into Big Bank Stocks
• Positive Sentiment: BAC joined 20 other financial institutions in planning a company to issue a U.S. dollar stablecoin in the first half of 2027. The initiative could give Bank of America a role in blockchain-based payments, liquidity and digital-asset infrastructure, although revenue benefits remain several quarters away. Goldman Sachs, BofA and others plan to issue dollar stablecoin together in 2027
• Positive Sentiment: Analysts and market commentary continue to highlight BAC’s valuation, with one estimate indicating approximately 31% potential upside based on intrinsic value. Institutional interest in dividend-paying financial stocks may provide additional support. Bank of America Stock May Be 31% Undervalued Despite Stablecoin Plans
• Neutral Sentiment: Bank of America says the search for yield is increasing demand for high-quality bonds and changing credit-risk management. The observation supports its fixed-income and investment-banking businesses but does not represent a specific earnings forecast. The hunt for yield is changing how investors trade credit
• Neutral Sentiment: Routine regulatory disclosures showed Merrill Lynch reducing indirect stakes in several Turkish companies. These transactions appear unrelated to BAC’s core operating outlook.
• Negative Sentiment: Berkshire Hathaway has reduced its Bank of America position for eight consecutive quarters, a source of potential selling pressure and a negative signal for investors who closely follow Berkshire’s portfolio decisions. Warren Buffett's Successor Greg Abel Started His Tenure With a Bang

Bank of America Trading Up 1.0%

NYSE:BAC opened at $62.63 on Thursday. Bank of America has a fifty-two week low of $46.12 and a fifty-two week high of $65.22. The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The stock has a market capitalization of $437.93 billion, a PE ratio of 14.36, a price-to-earnings-growth ratio of 0.99 and a beta of 1.15. The business's 50-day simple moving average is $61.45 and its 200-day simple moving average is $55.08.

Bank of America (NYSE:BAC - Get Free Report) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.13 by $0.08. The business had revenue of $31.56 billion during the quarter, compared to analysts' expectations of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.Bank of America's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.89 EPS. Sell-side analysts expect that Bank of America will post 4.68 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a dividend of $0.32 per share. The ex-dividend date is Friday, September 4th. This is a boost from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.0%. Bank of America's dividend payout ratio is 25.69%.

Bank of America Company Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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