Bank of America Corporation $BAC Stock Acquired by State of Alaska Department of Revenue

Key Points

• Alaska’s Department of Revenue increased its Bank of America stake by 20.2% in the third quarter, acquiring 140,735 shares for a total holding of 837,790 shares valued at approximately $45.6 million. Institutional investors and hedge funds collectively own 70.71% of BAC.
• Bank of America’s third-quarter results missed expectations, with adjusted EPS of $1.08 versus $1.10 expected and revenue of $29.96 billion versus $30.58 billion forecast. Trading weakness, higher credit-loss provisions and rising expenses weighed on performance.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and average price target of $62.78, but the bank faces significant regulatory and operational risks, including a more than $1.2 billion anti-money-laundering penalty and additional technology and compliance costs.

State of Alaska Department of Revenue raised its stake in Bank of America Corporation (NYSE:BAC - Free Report) by 20.2% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 837,790 shares of the financial services provider's stock after buying an additional 140,735 shares during the quarter. State of Alaska Department of Revenue's holdings in Bank of America were worth $45,601,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently modified their holdings of the stock. Turim 21 Investimentos Ltda. acquired a new position in Bank of America in the second quarter valued at about $25,000. Abound Financial LLC bought a new stake in shares of Bank of America in the fourth quarter worth about $26,000. Cherry Tree Wealth Management LLC increased its holdings in shares of Bank of America by 167.6% in the second quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider's stock worth $27,000 after acquiring an additional 300 shares in the last quarter. Principia Wealth Advisory LLC raised its position in shares of Bank of America by 69.9% during the second quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider's stock worth $30,000 after purchasing an additional 218 shares during the period. Finally, Vermillion Wealth Management Inc. raised its position in shares of Bank of America by 199.1% during the first quarter. Vermillion Wealth Management Inc. now owns 658 shares of the financial services provider's stock worth $32,000 after purchasing an additional 438 shares during the period. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Key Bank of America News

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

• Positive Sentiment: Analyst support remains a partial tailwind. Robert W. Baird upgraded BAC to “outperform” with a $62 price target, while Keefe, Bruyette & Woods maintained an “outperform” rating with a $65 target. Several other analysts still see upside from current levels. Analyst ratings and price targets
• Positive Sentiment: Management highlighted stronger underlying banking trends, including 8% year-over-year net interest income growth, expanding loans and deposits, and a goal of at least 8% NII growth in 2027. Consumer banking and wealth management also helped offset weakness in trading and investment banking. Q3 earnings call highlights
• Positive Sentiment: BAC’s valuation and shareholder returns may attract long-term investors following the selloff. The bank returned $8.3 billion to shareholders through dividends and repurchases, while its relatively low earnings multiple could support a recovery if costs and compliance issues improve.
• Neutral Sentiment: Truist, TD Cowen and Morgan Stanley lowered their price targets, but their revised targets remain above the current share price. Ratings ranged from “hold” to “outperform,” signaling continued optimism about the franchise but greater near-term caution.
• Negative Sentiment: The main overhang is a more than $1.2 billion non-tax-deductible penalty tied to anti-money-laundering and sanctions-control failures. Regulators said Bank of America failed to report more than $5 billion in suspicious transactions. The charge reduced quarterly earnings by roughly $0.17 per share and raises concerns about additional remediation costs and management oversight. Reuters report on Bank of America penalty
• Negative Sentiment: Third-quarter adjusted EPS of $1.08 and revenue of approximately $30.0 billion missed analyst expectations. Weaker fixed-income trading, investment-banking activity, higher credit-loss provisions and rising expenses pressured results, while unrealized bond losses reportedly climbed to $109 billion as long-term yields increased. BAC Q3 earnings analysis
• Negative Sentiment: Bank of America is also hiring about 1,000 contractors to address software weaknesses exposed by advanced AI testing, adding to compliance and technology expenses. Several law firms have announced shareholder investigations, creating an additional reputational and potential legal risk.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on BAC. Rothschild & Co Redburn set a $72.00 price objective on Bank of America in a report on Tuesday, October 6th. HSBC began coverage on Bank of America in a research note on Monday, September 28th. They set a "buy" rating and a $65.00 target price for the company. Royal Bank Of Canada lowered their target price on Bank of America from $65.00 to $60.00 and set an "outperform" rating for the company in a research note on Thursday. UBS Group dropped their target price on shares of Bank of America from $70.00 to $67.00 and set a "buy" rating on the stock in a report on Monday, October 5th. Finally, TD Cowen cut their price target on shares of Bank of America from $60.00 to $56.00 and set a "hold" rating on the stock in a research note on Thursday. Twenty analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $62.78.

Bank of America Stock Up 1.0%

NYSE BAC traded up $0.53 on Thursday, reaching $51.92. The company had a trading volume of 21,186,250 shares, compared to its average volume of 37,517,078. The company's fifty day moving average is $59.51 and its 200-day moving average is $56.69. The firm has a market capitalization of $363.08 billion, a price-to-earnings ratio of 11.92, a price-to-earnings-growth ratio of 0.87 and a beta of 1.21. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. Bank of America Corporation has a 1-year low of $46.12 and a 1-year high of $65.22.

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 earnings per share (EPS) for the quarter, missing the consensus estimate 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 17.56% and a return on equity of 12.20%. The business's revenue for the quarter was up 3.2% compared to the same quarter last year. During the same period in the prior year, the business earned $1.06 EPS. On average, research analysts forecast that Bank of America Corporation will post 4.60 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. Investors of record on Friday, September 4th were issued a dividend of $0.32 per share. The ex-dividend date was 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 2.5%. Bank of America's dividend payout ratio is 29.36%.

Bank of America Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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