Bank of America Corporation $BAC Shares Sold by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates reduced its Bank of America stake by 1.7%, selling 14,990 shares and retaining 862,311 shares valued at approximately $46.9 million. Institutional investors collectively own 70.71% of BAC.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating from 26 analysts and an average price target of $62.82, despite several recent target-price reductions.
• Bank of America’s latest quarter slightly missed expectations, reporting $1.08 in earnings per share and $29.96 billion in revenue, while the company raised its quarterly dividend to $0.32 per share.

Pinnacle Associates Ltd. decreased its holdings in Bank of America Corporation (NYSE:BAC - Free Report) by 1.7% in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 862,311 shares of the financial services provider's stock after selling 14,990 shares during the quarter. Pinnacle Associates Ltd.'s holdings in Bank of America were worth $46,936,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently made changes to their positions in the business. Legal & General Group Plc acquired a new position in Bank of America in the second quarter worth about $2,571,060,000. Deutsche Bank AG bought a new position in Bank of America during the second quarter worth about $2,359,172,000. Bank of New York Mellon Corp bought a new position in Bank of America during the second quarter worth about $2,313,953,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Bank of America during the second quarter valued at approximately $939,807,000. Finally, Canada Pension Plan Investment Board acquired a new stake in Bank of America during the second quarter valued at approximately $916,398,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Keefe, Bruyette & Woods lowered their price objective on Bank of America from $70.00 to $65.00 and set an "outperform" rating on the stock in a research note on Thursday, October 15th. UBS Group cut their target price on Bank of America from $70.00 to $67.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Jefferies Financial Group cut their target price on Bank of America from $75.00 to $70.00 and set a "buy" rating for the company in a research report on Thursday, September 24th. Robert W. Baird raised Bank of America from a "neutral" rating to an "outperform" rating and set a $62.00 price target on the stock in a research note on Thursday, October 15th. Finally, Truist Financial lowered their price target on Bank of America from $62.00 to $58.00 and set a "buy" rating on the stock in a research report on Thursday, October 15th. Twenty equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Bank of America has a consensus rating of "Moderate Buy" and a consensus price target of $62.82.

Bank of America News Summary

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

• Positive Sentiment: Bank of America’s second-quarter average loans rose 8% year over year while deposits increased 2%. Despite the uneven growth, net interest income climbed 9%, suggesting the bank is generating stronger returns from its deposit base and lending franchise. Bank of America Deposit Franchise Article
• Positive Sentiment: Bank of America was upgraded to a Buy rating by JLPascual. Other recent commentary indicated that the previously announced regulatory fine and earnings-related weakness may already be reflected in the stock, supporting the potential for a recovery. Bank of America Buy Upgrade
• Neutral Sentiment: The bank launched another investment-grade bond offering, including perpetual notes, shortly after raising $8 billion. The issuance may strengthen funding and capital flexibility, although it also adds financing costs and highlights continued reliance on wholesale markets. Bank of America Bond Sale
• Neutral Sentiment: Bank of America disclosed higher indirect stakes in Qiagen, ICU Girişim Sermayesi and Link Bilgisayar. These appear to be investment or regulatory ownership disclosures rather than changes to the core banking business. Qiagen Stake Disclosure
• Negative Sentiment: Multiple law firms announced or promoted securities-fraud investigations and class actions tied to alleged investor misstatements concerning anti-money-laundering and sanctions-compliance failures. The litigation follows more than $1.2 billion in federal penalties and creates potential legal costs and reputational damage. BAC Securities Class Action Alert
• Negative Sentiment: The latest reported quarter missed consensus estimates on both earnings and revenue, while broad bank stocks remain under pressure from rising Treasury yields and uncertainty over Federal Reserve policy. Bank Stocks Under Pressure

Bank of America Trading Up 0.4%

Shares of Bank of America stock opened at $50.59 on Wednesday. Bank of America Corporation has a 12-month low of $46.12 and a 12-month high of $65.22. The stock has a market capitalization of $353.77 billion, a P/E ratio of 12.02, a price-to-earnings-growth ratio of 0.86 and a beta of 1.21. The company has a 50-day simple moving average of $58.52 and a 200 day simple moving average of $56.77. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.10 by ($0.02). The firm had revenue of $29.96 billion during the quarter, compared to analyst estimates of $30.58 billion. Bank of America had a net margin of 16.80% and a return on equity of 12.15%. Bank of America's quarterly revenue was up 3.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.06 earnings per share. Research analysts expect that Bank of America Corporation will post 4.54 earnings per share 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. Stockholders of record on Friday, September 4th were issued a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, September 4th. This is a positive change from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a dividend yield of 2.5%. Bank of America's dividend payout ratio (DPR) is 30.40%.

Bank of America Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company's consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.

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