Erste Group Bank Forecasts Bank of America FY2026 Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Bank of America to $4.53 from $4.47 and projected FY2027 EPS of $5.13. The new FY2026 forecast is still slightly below the current consensus estimate of $4.64.
• Bank of America’s latest quarterly results beat earnings expectations, reporting $1.21 EPS versus $1.13 expected, while revenue rose 19.6% year over year. The bank also posted a return on equity of 12.20% and net margin of 17.56%.
• Wall Street sentiment remains constructive, with several firms raising price targets and the stock carrying an average Moderate Buy rating. Analysts also noted supportive trends such as stronger loan and deposit growth, improving operating leverage, and gains in trading and investment-banking activity.

Bank of America Corporation (NYSE:BAC - Free Report) - Investment analysts at Erste Group Bank raised their FY2026 earnings per share estimates for shares of Bank of America in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now anticipates that the financial services provider will post earnings per share of $4.53 for the year, up from their previous forecast of $4.47. The consensus estimate for Bank of America's current full-year earnings is $4.64 per share. Erste Group Bank also issued estimates for Bank of America's FY2027 earnings at $5.13 EPS.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.13 by $0.08. The business had revenue of $8.08 billion during the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The firm's revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.89 earnings per share.

A number of other equities analysts have also weighed in on BAC. 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. Citigroup boosted their price target on Bank of America from $62.00 to $66.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Piper Sandler upped their price objective on Bank of America from $53.00 to $59.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Autonomous Res decreased their price objective on Bank of America from $62.00 to $54.00 and set a "neutral" rating for the company in a report on Monday, April 6th. Finally, The Goldman Sachs Group lifted their target price on Bank of America from $58.00 to $63.00 and gave the company a "buy" rating in a research report on Thursday, April 16th. Twenty-one analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $63.77.

Bank of America Stock Down 0.2%

NYSE:BAC opened at $61.48 on Friday. The company has a current ratio of 0.83, a quick ratio of 0.81 and a debt-to-equity ratio of 1.23. Bank of America has a 1 year low of $44.75 and a 1 year high of $62.03. The stock has a 50-day moving average price of $55.11 and a two-hundred day moving average price of $53.09. The stock has a market cap of $436.30 billion, a price-to-earnings ratio of 14.10, a PEG ratio of 1.00 and a beta of 1.17.

Hedge Funds Weigh In On Bank of America

A number of institutional investors have recently added to or reduced their stakes in BAC. Ballast Inc. increased its stake in shares of Bank of America by 65.6% during the 2nd quarter. Ballast Inc. now owns 14,875 shares of the financial services provider's stock worth $848,000 after purchasing an additional 5,894 shares during the last quarter. Regent Peak Wealth Advisors LLC lifted its stake in Bank of America by 4.2% in the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 14,073 shares of the financial services provider's stock valued at $802,000 after purchasing an additional 564 shares during the last quarter. Tema ETFs LLC lifted its stake in Bank of America by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 136,391 shares of the financial services provider's stock valued at $7,772,000 after purchasing an additional 13,195 shares during the last quarter. GenWealth Group Inc. bought a new position in Bank of America during the second quarter worth about $206,000. Finally, Dagco Inc. increased its position in Bank of America by 337.2% during the second quarter. Dagco Inc. now owns 9,330 shares of the financial services provider's stock worth $532,000 after buying an additional 7,196 shares during the last quarter. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the transaction, the insider owned 1,373,397 shares of the company's stock, valued at $72,803,774.97. The trade was a 8.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.27% of the stock is currently owned by corporate insiders.

Bank of America Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 5th were given a dividend of $0.28 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $1.12 annualized dividend and a yield of 1.8%. Bank of America's dividend payout ratio is 27.72%.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Bank of America’s Q2 results came in better than expected, with strong earnings momentum, durable loan and deposit growth, and improving operating leverage helping reinforce the bull case. These Analysts Boost Their Forecasts On Bank of America Following Upbeat Q2 Results
• Positive Sentiment: Several Wall Street firms raised their targets on BAC, including Truist, KBW, Wells Fargo and Barclays, signaling increased confidence in the bank’s earnings outlook and potential upside. These Analysts Boost Their Forecasts On Bank of America Following Upbeat Q2 Results
• Positive Sentiment: BofA’s trading and investment-banking activity is benefiting from market whiplash and stronger deal activity, which supports near-term revenue growth in its markets businesses. BofA rides market whiplash to trading records, deal activity shines
• Positive Sentiment: Management says its AI investments are starting to pay off through better efficiency and returns, suggesting operating leverage could continue to improve. Bank of America’s AI bet is starting to pay off, its CFO says
• Positive Sentiment: Bank of America’s private bank study highlights the “Great Wealth Transfer” and more family businesses being inherited, a trend that could support long-term wealth-management and advisory revenues. Bank Of America (BAC) Says More US Businesses Are Staying In The Family
• Neutral Sentiment: BAC’s CEO joined peers in warning about AI-related security risks, which is important for the financial sector but not an immediate direct driver of earnings. Bank of America CEO Brian Moynihan Joins Wall Street Leaders in Warning of Mythos AI Risks
• Neutral Sentiment: Articles questioning whether BAC is overvalued or discussing valuation are likely to influence investor debate, but do not by themselves change the bank’s operating outlook. Is Bank of America Corporation (BAC) Overvalued?

About Bank of America

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.