Bank of America Corporation $BAC Stock: First Citizens Bank & Trust Co. Raises Holdings

Key Points

• First Citizens Bank & Trust increased its Bank of America stake by 40.2% in the third quarter, bringing its holdings to 436,787 shares worth approximately $23.8 million. Institutional investors collectively own 70.71% of BAC.
• Bank of America reported roughly $30.0 billion in third-quarter revenue and $1.08 in EPS, narrowly missing analyst estimates. Underlying trends were positive, including 8% year-over-year net interest income growth and increases in deposits and loans.
• Analysts maintain a generally favorable view, with a consensus “Moderate Buy” rating and a $64.22 target price, while the company raised its quarterly dividend to $0.32 per share. Regulatory penalties exceeding $1.2 billion remain a significant governance and compliance concern.

First Citizens Bank & Trust Co. boosted its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 40.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 436,787 shares of the financial services provider's stock after purchasing an additional 125,331 shares during the quarter. First Citizens Bank & Trust Co.'s holdings in Bank of America were worth $23,774,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. Legal & General Group Plc purchased a new stake in shares of Bank of America during the second quarter worth $2,571,060,000. Deutsche Bank AG acquired a new position in Bank of America in the 2nd quarter valued at about $2,359,172,000. Bank of New York Mellon Corp purchased a new stake in shares of Bank of America in the 2nd quarter valued at approximately $2,313,953,000. Amundi grew its stake in shares of Bank of America by 12.5% in the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock valued at $2,066,274,000 after buying an additional 4,721,969 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Bank of America by 1.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock worth $1,517,599,000 after buying an additional 561,413 shares during the last quarter. 70.71% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Bank of America

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

• Positive Sentiment: Underlying banking trends were constructive: net interest income increased 8% year over year to $16.4 billion, average deposits rose 2% to $2.02 trillion, and average loans and leases grew 6% to $1.23 trillion. Bank of America also returned $8.3 billion to shareholders through dividends and share repurchases. Bank of America Reports $6.9 Billion Third-Quarter Net Income
• Neutral Sentiment: Reported third-quarter net income was $6.9 billion, while revenue reached approximately $30.0 billion. Credit costs included $1.3 billion of provision expense and $1.3 billion in net charge-offs, keeping asset quality and loan-loss trends important for investors. Bank of America Reports Third Quarter 2026 Financial Results
• Negative Sentiment: Headline earnings missed expectations. One market report cited EPS of $1.08 versus a $1.10 consensus, while the company’s reported diluted EPS was $0.91, down from $1.04 a year earlier, after including a large regulatory charge. Revenue of about $30.0 billion was also below the roughly $30.6 billion estimate. Bank of America Third-Quarter Earnings
• Negative Sentiment: U.S. regulators imposed more than $1.2 billion in penalties over anti-money-laundering and sanctions-compliance failures, including the alleged failure to report more than $5 billion in suspicious transactions. Bank of America acknowledged willful Bank Secrecy Act violations, raising concerns about governance, controls and potential future regulatory scrutiny. Bank of America Hit With More Than $1.2 Billion in Penalties

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Argus set a $70.00 price objective on Bank of America in a report on Wednesday, July 15th. HSBC assumed 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. JPMorgan Chase & Co. reduced their target price on Bank of America from $68.00 to $62.00 and set an "overweight" rating on the stock in a research report on Friday, October 2nd. Morgan Stanley reaffirmed an "overweight" rating on shares of Bank of America in a research note on Tuesday, September 15th. Finally, Oppenheimer cut Bank of America from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Nineteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and a consensus target price of $64.22.

Bank of America Price Performance

Shares of BAC opened at $54.05 on Wednesday. The firm has a 50-day simple moving average of $59.75 and a two-hundred day simple moving average of $56.67. The stock has a market cap of $377.93 billion, a PE ratio of 12.40, a P/E/G ratio of 0.88 and a beta of 1.21. Bank of America Corporation has a 1-year low of $46.12 and a 1-year 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.

Bank of America (NYSE:BAC - Get Free Report) last issued its quarterly earnings data on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing the consensus estimate of $1.10 by ($0.02). The company had revenue of $29.96 billion during the quarter, compared to analyst estimates of $30.58 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%. As a group, analysts forecast that Bank of America Corporation will post 4.60 EPS for the current year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were given a $0.32 dividend. 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 dividend on an annualized basis and a yield of 2.4%. Bank of America's dividend payout ratio is presently 29.36%.

About Bank of America

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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