Robert W. Baird Issues Positive Forecast for Bank of America (NYSE:BAC) Stock Price

Key Points

• Robert W. Baird raised its price target on Bank of America to $58 from $56 and maintained a "neutral" rating, implying about a 6.8% upside from the prior close.
• Bank of America beat Q1 expectations with EPS of $1.11 (vs. $1.00 consensus) and revenue of $30.27 billion, driven by a ~30% jump in equities revenue, higher net interest income, and strong wealth/investment-banking fees.
• Analyst sentiment is broadly positive—22 analysts rate BAC a Buy and five a Hold, with an average price target of $60.65 and several firms (including Wells Fargo and Keefe, Bruyette & Woods) raising targets as high as $65.

Bank of America (NYSE:BAC) had its price target lifted by equities research analysts at Robert W. Baird from $56.00 to $58.00 in a research note issued on Thursday,MarketScreener reports. The firm currently has a "neutral" rating on the financial services provider's stock. Robert W. Baird's price target would indicate a potential upside of 6.80% from the stock's previous close.

A number of other equities analysts have also recently issued reports on the stock. Truist Financial reduced their price objective on shares of Bank of America from $62.00 to $60.00 and set a "buy" rating on the stock in a research note on Thursday, January 15th. Weiss Ratings restated a "buy (b)" rating on shares of Bank of America in a research report on Tuesday, January 27th. Wall Street Zen raised Bank of America from a "sell" rating to a "hold" rating in a research note on Saturday, February 14th. HSBC upped their price objective on Bank of America from $55.00 to $60.00 and gave the company a "buy" rating in a report on Thursday. Finally, Wells Fargo & Company raised their target price on Bank of America from $62.00 to $65.00 and gave the stock an "overweight" rating in a report on Monday, January 5th. Twenty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $60.65.

Bank of America Price Performance

Shares of BAC stock opened at $54.31 on Thursday. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.15. Bank of America has a 12 month low of $36.49 and a 12 month high of $57.55. The firm has a market cap of $388.08 billion, a price-to-earnings ratio of 14.18, a PEG ratio of 0.93 and a beta of 1.23. The stock has a 50-day moving average price of $50.53 and a 200 day moving average price of $52.23.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.11. Bank of America had a net margin of 16.23% and a return on equity of 11.07%. The company had revenue of $30.27 billion for the quarter, compared to analyst estimates of $29.72 billion. During the same quarter last year, the firm earned $0.90 EPS. The company's revenue for the quarter was up 10.7% on a year-over-year basis. Research analysts expect that Bank of America will post 3.7 EPS for the current year.

Insider Activity at Bank of America

In related news, insider Bernard A. Mensah sold 94,000 shares of the firm's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $46.94, for a total value of $4,412,360.00. Following the completion of the transaction, the insider owned 170,184 shares of the company's stock, valued at approximately $7,988,436.96. This trade represents a 35.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider James P. Demare sold 83,832 shares of Bank of America stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $50.00, for a total transaction of $4,191,600.00. Following the completion of the sale, the insider owned 307,240 shares in the company, valued at $15,362,000. The trade was a 21.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 227,832 shares of company stock valued at $11,094,960. 0.27% of the stock is owned by insiders.

Institutional Investors Weigh In On Bank of America

A number of large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in 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 acquiring an additional 23,351,183 shares during the period. Capital World Investors grew its stake in shares of Bank of America by 11.0% in the third quarter. Capital World Investors now owns 144,371,118 shares of the financial services provider's stock valued at $7,448,816,000 after acquiring an additional 14,275,810 shares in the last quarter. Norges Bank acquired a new stake in Bank of America in the 4th quarter worth about $4,774,210,000. Bank of New York Mellon Corp boosted its holdings in Bank of America by 5.4% in the 4th quarter. Bank of New York Mellon Corp now owns 57,619,317 shares of the financial services provider's stock valued at $3,169,062,000 after purchasing an additional 2,929,779 shares during the period. Finally, Fisher Asset Management LLC increased its holdings in shares of Bank of America by 2.1% during the fourth quarter. Fisher Asset Management LLC now owns 53,783,821 shares of the financial services provider's stock worth $2,958,110,000 after purchasing an additional 1,105,833 shares during the period. Institutional investors own 70.71% of the company's stock.

Bank of America News Roundup

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

• Positive Sentiment: Q1 beat: EPS $1.11 and revenue ~$30.3B topped estimates, driven by a 30% jump in equities revenue, higher NII and strong wealth/investment-banking fees — the core reason shares are rising. Bank of America profit rises as trading shines
• Positive Sentiment: AI rollout for advisors: BofA introduced a new AI tool for its ~18,000 financial advisors, which could improve client servicing, productivity and AUM growth at Merrill/wealth units over time. Bank of America’s 18,000 financial advisors just got a new AI tool as the company posts a record quarter
• Positive Sentiment: Analyst upgrade: Keefe, Bruyette & Woods raised its price target to $64 and kept an outperform rating — a visible vote of confidence that supports further upside. Keefe, Bruyette & Woods price target raise (Benzinga)
• Positive Sentiment: Consumer and payments resilience: Card volumes grew ~7% and consumer flows topped $1T for the quarter, supporting fee income and NII potential if rates stay elevated. BofA’s Q1 Shows the US Consumer Won’t Flinch, Card Volumes Up 7%
• Neutral Sentiment: Debt management: BofA will redeem €1.5B of senior notes due 2027 on May 4 — a liability management move that’s routine but uses cash/capital. Bank of America Announces Redemption of €1,500,000,000 1.776% Fixed/Floating Rate Senior Notes, due May 4, 2027
• Neutral Sentiment: Corporate giving/PR: BofA announced a $5M founding sponsorship for the Theodore Roosevelt Presidential Library — positive for brand but not material to earnings. Commemorating America 250, BofA Announces $5M Founding Sponsorship
• Negative Sentiment: Fixed-income weakness and macro risks: Fixed-income trading underperformed and management flagged evolving economic/geopolitical risks that could pressure trading and credit trends. Monitor next-quarter NII and trading mix. Bank of America beats profit estimates as trading, wealth income drive growth
• Negative Sentiment: Investor sentiment downgrade: A BofA survey noted a sharp cut to global growth expectations — a reminder macro shocks can reverse the current tailwind for banks. Investors slash growth views by most in 4 years: BofA

Bank of America Company Profile

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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