Bank of America (NYSE:BAC) Stock Falls 3.3% - Should You Sell?

Key Points

• Bank of America shares fell 3.3% to $49.91 on Thursday, with trading volume 60% above its average.
• Investor sentiment faced pressure from bearish options activity and ETF selling, securities-lawsuit notices and concerns about possible regulatory fallout; rising oil prices may also fuel inflation and interest-rate uncertainty.
• Analysts’ price targets were cut, though the consensus rating remained “Moderate Buy” with an average target of $62.48. The latest quarter also fell slightly short of earnings and revenue estimates.

Bank of America Corporation (NYSE:BAC - Get Free Report) traded down 3.3% during trading on Thursday. The stock traded as low as $49.76 and last traded at $49.91. 60,581,174 shares were traded during mid-day trading, an increase of 60% from the average daily volume of 37,786,801 shares. The stock had previously closed at $51.63.

Key Stories Impacting Bank of America

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

• Neutral Sentiment: Bank of America strategists noted that rising oil prices have been associated with higher interest rates in several major economies. For BAC, higher rates could have mixed implications, while increased inflation and market volatility may add uncertainty. Read More.
• Negative Sentiment: Several law firms publicized a securities class action against BAC, with a December 15 lead-plaintiff deadline and a proposed class period from August 1, 2025, to October 13, 2026. These notices largely repeat the same lawsuit rather than indicate a new legal ruling, but add to investor uncertainty. Read More.
• Negative Sentiment: Some lawsuit coverage points to scrutiny following the bank’s admitted anti-money-laundering violations and reports that Senator Elizabeth Warren urged the Justice Department to investigate. The possibility of further regulatory or legal consequences may weigh on sentiment. Read More.
• Negative Sentiment: Trading indicators were cautious: options traders were described as moderately bearish, and ETFs were net sellers of $21.6 million in BAC shares on November 3. Read More. · Read More.
• Negative Sentiment: Recent coverage also flagged a pessimistic UBS outlook and an analyst downgrade, adding pressure to investor sentiment. Read More.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Morgan Stanley dropped their price objective on Bank of America from $67.00 to $61.00 and set an "overweight" rating on the stock in a research note on Thursday, October 15th. UBS Group dropped their price target on Bank of America from $67.00 to $62.00 and set a "buy" rating for the company in a research note on Monday. Wells Fargo & Company reduced their price objective on Bank of America from $69.00 to $64.00 and set an "overweight" rating on the stock in a research note on Thursday, October 15th. Keefe, Bruyette & Woods dropped their price target on Bank of America from $70.00 to $65.00 and set an "outperform" rating for the company in a research note on Thursday, October 15th. Finally, Truist Financial decreased their price target on shares of Bank of America from $62.00 to $58.00 and set a "buy" rating for the company in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $62.48.

Bank of America Stock Down 3.3%

The firm has a market cap of $344.39 billion, a P/E ratio of 11.86, a price-to-earnings-growth ratio of 0.87 and a beta of 1.19. The stock's fifty day moving average is $55.72 and its two-hundred day moving average is $54.92. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 1.17.

Bank of America (NYSE:BAC - Get Free Report) last announced its 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 company had revenue of $29.96 billion for the quarter, compared to the consensus estimate of $30.58 billion. Bank of America had a net margin of 16.80% and a return on equity of 12.15%. The company's revenue for the quarter was up 3.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.06 earnings per share. As a group, research analysts anticipate that Bank of America Corporation will post 4.51 earnings per share for the current year.

Bank of America Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 24th. Stockholders of record on Friday, December 4th will be paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, December 4th. Bank of America's dividend payout ratio (DPR) is presently 30.40%.

Institutional Trading of Bank of America

Several institutional investors have recently added to or reduced their stakes in BAC. Legal & General Group Plc acquired a new position in Bank of America in the second quarter valued at $2,571,060,000. Deutsche Bank AG acquired a new position in shares of Bank of America during the second quarter worth about $2,359,172,000. Bank of New York Mellon Corp purchased a new position in Bank of America during the second quarter worth about $2,313,953,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Bank of America during the second quarter worth about $939,807,000. Finally, Canada Pension Plan Investment Board acquired a new stake in Bank of America in the second quarter valued at about $916,398,000. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

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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