Bank of America Corporation $BAC Stock: Sumitomo Mitsui Trust Group Inc. Lowers Position

Key Points

• Sumitomo Mitsui Trust Group cut its Bank of America stake by 11.3% in the third quarter, selling 1.7 million shares and retaining 13.3 million shares worth approximately $724.7 million. Institutional investors and hedge funds collectively own 70.71% of BAC.
• Bank of America’s latest quarter fell slightly short of expectations, with EPS of $1.08 versus $1.10 expected and revenue of $29.96 billion versus $30.58 billion forecast, although revenue increased 3.2% year over year.
• The stock faces increased legal and compliance risks, including calls for a potential DOJ investigation, a securities-fraud class action and an employee arbitration lawsuit. Analysts nevertheless maintain a consensus “Moderate Buy” rating with a $62.70 target price, while the company declared a quarterly dividend of $0.32 per share.

Sumitomo Mitsui Trust Group Inc. lowered its holdings in shares of Bank of America Corporation (NYSE:BAC - Free Report) by 11.3% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 13,314,418 shares of the financial services provider's stock after selling 1,697,033 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.19% of Bank of America worth $724,704,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Legal & General Group Plc acquired a new position in shares of Bank of America during the 2nd quarter worth approximately $2,571,060,000. Deutsche Bank AG purchased a new position in shares of Bank of America during the 2nd quarter valued at approximately $2,359,172,000. Bank of New York Mellon Corp acquired a new stake in Bank of America in the 2nd quarter valued at $2,313,953,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Bank of America in the 2nd quarter valued at $939,807,000. Finally, Canada Pension Plan Investment Board acquired a new stake in Bank of America in the 2nd quarter valued at $916,398,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Bank of America’s market commentary remains constructive on several growth initiatives. Analysts point to branch expansion and artificial-intelligence investments as potential drivers of deposit growth, stronger customer relationships and improved efficiency. Can BAC's Branch Expansion & AI Push Drive Long-Term Growth?
• Positive Sentiment: Bank of America expanded its physical banking presence by opening new financial centers in Wisconsin, supporting its long-term strategy to deepen retail relationships and gather deposits. Bank of America expands in-person reach with new financial centers in Wisconsin
• Neutral Sentiment: Bank of America’s investment strategists highlighted technology-company bonds as potentially more attractive than tech stocks, reflecting a broader shift toward credit and quality assets. The view may benefit the bank’s investment-banking and fixed-income businesses, but it does not directly change BAC’s earnings outlook. Tech Bonds Are 'Diamonds in the Rough': Bank of America's Hartnett Says
• Negative Sentiment: Senator Elizabeth Warren urged the Justice Department to investigate Bank of America and potentially its executives over alleged anti-money-laundering and sanctions violations. The pressure follows a reported $1.21 billion penalty and raises concerns about additional fines, remediation costs and reputational damage. Warren urges DOJ criminal probe of Bank of America over anti-money-laundering violations
• Negative Sentiment: Multiple law firms promoted a securities-fraud class action covering investors who purchased BAC shares from August 1, 2025, through October 13, 2026. The repeated notices and December 15, 2026 lead-plaintiff deadline reinforce near-term litigation overhang, although the allegations have not been adjudicated. ROSEN securities class action notice
• Negative Sentiment: Bank of America was also sued over its use of mandatory arbitration in employee disputes, adding another legal and compliance concern for investors. Bank of America sued over mandatory arbitration for employee disputes

Bank of America Stock Performance

Shares of Bank of America stock opened at $50.03 on Friday. The business's 50 day moving average price is $56.44 and its 200 day moving average price is $54.96. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.82 and a current ratio of 0.82. The company has a market cap of $349.85 billion, a price-to-earnings ratio of 11.88, a PEG ratio of 0.87 and a beta of 1.21. Bank of America Corporation has a one year low of $46.12 and a one year high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last released its quarterly earnings data 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). Bank of America had a return on equity of 12.15% and a net margin of 16.80%. The firm had revenue of $29.96 billion for the quarter, compared to analyst estimates of $30.58 billion. During the same quarter in the previous year, the business posted $1.06 earnings per share. Bank of America's revenue for the quarter was up 3.2% on a year-over-year basis. On average, research analysts predict that Bank of America Corporation will post 4.52 EPS for the current year.

Bank of America Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 24th. Investors of record on Friday, December 4th will be issued a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.6%. The ex-dividend date is Friday, December 4th. Bank of America's payout ratio is 30.40%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on BAC. TD Cowen reduced their price objective on shares of Bank of America from $60.00 to $56.00 and set a "hold" rating for the company in a research report on Thursday, October 15th. UBS Group decreased their price objective 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. Evercore set a $62.00 target price on shares of Bank of America in a research report on Thursday, October 1st. Morgan Stanley cut their target price on shares of Bank of America from $67.00 to $61.00 and set an "overweight" rating for the company in a research note on Thursday, October 15th. Finally, Argus set a $70.00 price target on shares of Bank of America in a research report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $62.70.

Bank of America Company 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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