Bank of America Corporation (NYSE:BAC) Stock Has Consensus Price Target of $63.88 According to Brokerages

Key Points

• Analysts remain broadly positive: Bank of America has a “Moderate Buy” consensus from 27 firms, with 21 buys and six holds. The average 12-month price target is $63.88 versus a reported share price of $56.65.
• Recent results exceeded expectations: Quarterly EPS came in at $1.21, above the $1.13 consensus, while revenue reached $31.56 billion and rose 19.6% year over year.
• Dividend increased: The quarterly dividend rose from $0.28 to $0.32 per share, equating to an annualized $1.28 payout and a 2.3% yield.

Bank of America Corporation (NYSE:BAC) has earned an average rating of "Moderate Buy" from the twenty-seven research firms that are covering the company, MarketBeat Ratings reports. Six equities research 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 analysts that have issued ratings on the stock in the last year is $63.88.

Several research analysts have recently weighed in on the company. Robert W. Baird upped their target price on Bank of America from $58.00 to $62.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 15th. Wells Fargo & Company boosted their price target on shares of Bank of America from $67.00 to $69.00 and gave the stock an "overweight" rating in a report on Wednesday, July 15th. Citigroup upped their price objective on shares of Bank of America from $62.00 to $66.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Royal Bank Of Canada increased their price objective on shares of Bank of America from $59.00 to $65.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Finally, Truist Financial lifted their target price on shares of Bank of America from $64.00 to $65.00 and gave the company a "buy" rating in a research report on Wednesday, July 15th.

Bank of America Price Performance

NYSE:BAC opened at $56.65 on Monday. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. Bank of America has a 52 week low of $46.12 and a 52 week high of $65.22. The stock's 50-day moving average price is $61.58 and its 200-day moving average price is $56.11. The stock has a market capitalization of $396.10 billion, a PE ratio of 12.99, a price-to-earnings-growth ratio of 0.91 and a beta of 1.15.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping analysts' consensus estimates of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The company had revenue of $31.56 billion during the quarter, compared to analysts' expectations of $30.78 billion. During the same quarter in the prior year, the firm posted $0.89 EPS. Bank of America's quarterly revenue was up 19.6% compared to the same quarter last year. As a group, equities analysts expect that Bank of America will post 4.66 EPS for the current fiscal year.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.3%. The ex-dividend date was Friday, September 4th. This is a positive change from Bank of America's previous quarterly dividend of $0.28. Bank of America's payout ratio is presently 29.36%.

More Bank of America News

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

• Positive Sentiment: Improving revenue outlook: Analysts say broader loan growth, expected net interest income growth of 7%–8%, and the repricing of fixed-rate assets could help sustain Bank of America’s revenue momentum. This reinforces the bank’s recent earnings strength, including its latest revenue and EPS beat. Can Bank of America Sustain Revenue Growth on Stronger Loans and NII?
• Positive Sentiment: Still viewed favorably after the selloff: Recent research characterizes BAC as an attractive value opportunity based on strong core earnings, with valuation metrics remaining relatively undemanding. Jefferies also maintained a Buy rating despite reducing its price target from $75 to $70. Jefferies lowers Bank of America price target but maintains Buy rating
• Positive Sentiment: Long-term workforce investment: Bank of America plans to hire 1,000 additional apprentices over two years and invest $150 million in workforce development. The initiative may strengthen hiring pipelines and community relationships, although its direct earnings impact is likely limited in the near term. BofA to hire apprentices and invest in workforce development
• Neutral Sentiment: Mixed market signals: BofA strategist Michael Hartnett said investor behavior suggests confidence that central banks can restore policy credibility, but the bank also highlighted rising Treasury-market anxiety and financial-stock weakness as potential signals of a major risk-off event. BofA warns of potential market selloff
• Negative Sentiment: Macro and risk concerns: BofA warned that elevated Treasury volatility could trigger deleveraging across markets. Separately, growing investor concern that the artificial-intelligence spending boom could become a bust adds to broader equity-market risk, potentially pressuring bank shares if credit conditions deteriorate. Bank of America warns stock market faces deleveraging risk

Hedge Funds Weigh In On Bank of America

A number of hedge funds have recently made changes to their positions in the company. QRG Capital Management Inc. lifted its position in shares of Bank of America by 44.4% in the second quarter. QRG Capital Management Inc. now owns 1,280,833 shares of the financial services provider's stock valued at $72,982,000 after acquiring an additional 393,875 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its stake in shares of Bank of America by 89.2% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 356,717 shares of the financial services provider's stock worth $20,326,000 after acquiring an additional 168,194 shares during the last quarter. Andra AP fonden increased its position in shares of Bank of America by 34.4% during the second quarter. Andra AP fonden now owns 1,095,383 shares of the financial services provider's stock worth $62,415,000 after purchasing an additional 280,365 shares in the last quarter. Silicon Valley Capital Partners raised its stake in Bank of America by 12.9% in the 2nd quarter. Silicon Valley Capital Partners now owns 239,576 shares of the financial services provider's stock valued at $14,638,000 after purchasing an additional 27,283 shares during the last quarter. Finally, Premier Financial Group purchased a new position in Bank of America in the 2nd quarter valued at $682,000. Institutional investors and hedge funds own 70.71% of the company's stock.

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, businesses, institutional investors and governments. Its operations include consumer banking, credit and debit cards, mortgages, small-business banking, commercial banking, investment banking, securities trading and investment management.

The company provides consumer and wealth-management services through Bank of America and Merrill, including deposit accounts, lending, brokerage, retirement planning, financial advice and private banking.

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