Zacks Research Comments on Bank of America FY2026 Earnings

Key Points

• Zacks Research has revised its FY2026 earnings per share estimate for Bank of America from $4.23 to $4.22, while the current consensus estimate stands at $3.70 per share.
• The company announced a stock repurchase plan allowing it to buy back up to $40 billion in shares, indicating confidence in the stock's value.
• Bank of America will increase its quarterly dividend payout from $0.26 to $0.28 per share, effective September 26th, representing an annualized dividend of $1.12 with a yield of 2.4%.

Bank of America Corporation (NYSE:BAC - Free Report) - Equities researchers at Zacks Research dropped their FY2026 earnings per share estimates for Bank of America in a report released on Tuesday, August 12th. Zacks Research analyst R. Department now forecasts that the financial services provider will post earnings of $4.22 per share for the year, down from their previous estimate of $4.23. The consensus estimate for Bank of America's current full-year earnings is $3.70 per share. Zacks Research also issued estimates for Bank of America's Q4 2026 earnings at $1.21 EPS and FY2027 earnings at $5.00 EPS.

Bank of America (NYSE:BAC - Get Free Report) last released its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.03. The firm had revenue of ($22,273.00) million during the quarter, compared to the consensus estimate of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%. The firm's revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.83 earnings per share.

Other equities analysts have also recently issued reports about the stock. Truist Financial boosted their price target on shares of Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Robert W. Baird restated a "neutral" rating and set a $52.00 price target on shares of Bank of America in a report on Friday, June 27th. Wall Street Zen cut shares of Bank of America from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Barclays lowered their price target on shares of Bank of America from $58.00 to $54.00 and set an "overweight" rating on the stock in a report on Wednesday, April 16th. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Bank of America from $55.00 to $52.00 and set an "outperform" rating for the company in a report on Wednesday, April 16th. One analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $50.13.

Bank of America Price Performance

NYSE BAC opened at $47.57 on Wednesday. The business's fifty day moving average is $46.53 and its two-hundred day moving average is $43.76. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.79 and a current ratio of 0.80. Bank of America has a 1 year low of $33.06 and a 1 year high of $49.31. The stock has a market capitalization of $352.33 billion, a P/E ratio of 13.91, a P/E/G ratio of 1.79 and a beta of 1.31.

Bank of America declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its shares are undervalued.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be issued a dividend of $0.28 per share. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Bank of America's previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a dividend yield of 2.4%. Bank of America's dividend payout ratio (DPR) is 32.75%.

Insider Buying and Selling at Bank of America

In other news, insider James P. Demare sold 148,391 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $45.57, for a total transaction of $6,762,177.87. Following the completion of the sale, the insider owned 223,407 shares of the company's stock, valued at approximately $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

Institutional Trading of Bank of America

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Level Four Advisory Services LLC increased its holdings in shares of Bank of America by 5.0% in the second quarter. Level Four Advisory Services LLC now owns 182,569 shares of the financial services provider's stock valued at $8,639,000 after purchasing an additional 8,628 shares in the last quarter. Patrick M Sweeney & Associates Inc. grew its holdings in Bank of America by 0.6% during the 2nd quarter. Patrick M Sweeney & Associates Inc. now owns 126,360 shares of the financial services provider's stock worth $6,183,000 after acquiring an additional 714 shares during the period. State Board of Administration of Florida Retirement System grew its holdings in Bank of America by 0.6% during the 2nd quarter. State Board of Administration of Florida Retirement System now owns 6,664,900 shares of the financial services provider's stock worth $315,383,000 after acquiring an additional 38,937 shares during the period. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new stake in Bank of America during the 2nd quarter worth $289,000. Finally, All Terrain Financial Advisors LLC acquired a new stake in Bank of America during the 2nd quarter worth $218,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Bank of America Company Profile

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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