FY2026 EPS Forecast for Bank of America Lifted by Analyst

Key Points

• Erste Group Bank slightly raised its FY2026 EPS forecast for Bank of America to $4.46 from $4.45, matching the current consensus estimate. The firm also projected FY2027 EPS of $5.08 and kept a Hold rating.
• Bank of America’s latest quarter beat expectations, reporting $1.11 EPS versus the $1.00 consensus and $30.27 billion in revenue versus $29.72 billion expected. Revenue rose 10.7% year over year, with return on equity of 11.49%.
• Sentiment from analysts remains generally constructive: the stock has a Moderate Buy consensus with a target price of $61.06, and most analysts covering BAC rate it a Buy. The shares recently traded at $49.77, below that consensus target.

Bank of America Corporation (NYSE:BAC - Free Report) - Stock analysts at Erste Group Bank boosted their FY2026 earnings per share (EPS) estimates for shares of Bank of America in a report released on Friday, May 15th. Erste Group Bank analyst H. Engel now expects that the financial services provider will post earnings per share of $4.46 for the year, up from their prior forecast of $4.45. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Bank of America's current full-year earnings is $4.46 per share. Erste Group Bank also issued estimates for Bank of America's FY2027 earnings at $5.08 EPS.

BAC has been the subject of a number of other research reports. Morgan Stanley reduced their target price on Bank of America from $67.00 to $61.00 and set an "overweight" rating for the company in a research note on Tuesday, March 31st. Weiss Ratings restated a "buy (b)" rating on shares of Bank of America in a research note on Friday, April 24th. Keefe, Bruyette & Woods raised their target price on Bank of America from $63.00 to $64.00 and gave the stock an "outperform" rating in a research note on Thursday, April 16th. Robert W. Baird raised their target price on Bank of America from $56.00 to $58.00 and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Finally, JPMorgan Chase & Co. reduced their target price on Bank of America from $61.50 to $57.50 and set an "overweight" rating for the company in a research note on Tuesday, April 7th. Twenty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Bank of America currently has a consensus rating of "Moderate Buy" and a consensus target price of $61.06.

Bank of America Stock Performance

Shares of BAC stock opened at $49.77 on Monday. The firm has a market capitalization of $353.18 billion, a price-to-earnings ratio of 12.32, a price-to-earnings-growth ratio of 0.84 and a beta of 1.21. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.81 and a quick ratio of 0.81. The business has a fifty day moving average of $50.40 and a 200 day moving average of $52.44. Bank of America has a 1 year low of $42.35 and a 1 year high of $57.55.

Bank of America (NYSE:BAC - Get Free Report) last posted its quarterly earnings data on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates of $1.00 by $0.11. The firm had revenue of $30.27 billion during the quarter, compared to analysts' expectations of $29.72 billion. Bank of America had a return on equity of 11.49% and a net margin of 16.78%.The business's quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.90 EPS.

Hedge Funds Weigh In On Bank of America

Several institutional investors and hedge funds have recently modified their holdings of BAC. Norges Bank purchased a new position in shares of Bank of America in the 4th quarter valued at about $4,774,210,000. Capital International Investors purchased a new position in shares of Bank of America in the 4th quarter valued at about $2,357,461,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Bank of America by 640.5% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 46,516,728 shares of the financial services provider's stock valued at $2,399,798,000 after purchasing an additional 40,235,201 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Bank of America by 3.7% in the 4th quarter. Vanguard Group Inc. now owns 651,076,825 shares of the financial services provider's stock valued at $35,809,225,000 after purchasing an additional 23,351,183 shares in the last quarter. Finally, Cardano Risk Management B.V. increased its stake in shares of Bank of America by 914.5% in the 4th quarter. Cardano Risk Management B.V. now owns 25,095,260 shares of the financial services provider's stock valued at $1,380,239,000 after purchasing an additional 22,621,546 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Insider Buying and Selling

In other Bank of America news, insider James P. Demare sold 83,832 shares of Bank of America stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $50.00, for a total transaction of $4,191,600.00. Following the completion of the transaction, the insider owned 307,240 shares in the company, valued at approximately $15,362,000. This trade represents a 21.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Geoffrey S. Greener sold 126,756 shares of Bank of America stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total value of $6,719,335.56. Following the completion of the transaction, the insider owned 1,373,397 shares of the company's stock, valued at approximately $72,803,774.97. This represents a 8.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 354,588 shares of company stock worth $17,814,296. Corporate insiders own 0.27% of the company's stock.

Bank of America Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 5th will be paid a dividend of $0.28 per share. The ex-dividend date is Friday, June 5th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.3%. Bank of America's dividend payout ratio (DPR) is presently 27.72%.

Key Bank of America News

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

• Positive Sentiment: Bank of America is being highlighted as a potential beneficiary of a “higher-for-longer” or steeper yield-curve environment, which could support lending margins and fixed-rate asset repricing for large banks. Article Title
• Positive Sentiment: Investors are also viewing Bank of America as one of the better-value large banks, with commentary pointing to its relatively attractive valuation and Buffett-backed reputation as reasons it could hold up well versus peers. Article Title
• Neutral Sentiment: Analysts are also using Bank of America’s research platform to make calls on other stocks, including Alphabet, Taiwan Semiconductor, ASML, Nvidia, Akamai, IQVIA, and VNET. These notes reinforce BofA’s influence on markets, but they do not directly change BAC’s fundamentals. Article Title
• Negative Sentiment: Evercore lowered its price target on Bank of America from $70 to $61, which is a modest caution signal even though the firm kept an Outperform rating. Article Title

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.

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