Zacks Research Predicts Lower Earnings for Bank of America

Key Points

• Zacks Research has lowered its Q2 2026 earnings per share estimate for Bank of America from $1.02 to $1.01, while the current full-year earnings consensus is at $3.70 per share.
• Bank of America recently increased its quarterly dividend to $0.28 per share, up from $0.26, providing a yield of 2.4%.
• The company has authorized a $40 billion share repurchase program, reflecting confidence in its stock being undervalued, with the potential to repurchase up to 11.1% of its shares.

Bank of America Corporation (NYSE:BAC - Free Report) - Equities researchers at Zacks Research reduced their Q2 2026 earnings per share estimates for shares of Bank of America in a note issued to investors on Tuesday, August 12th. Zacks Research analyst R. Department now expects that the financial services provider will post earnings per share of $1.01 for the quarter, down from their previous forecast of $1.02. 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 Q1 2027 earnings at $1.03 EPS and Q2 2027 earnings at $1.20 EPS.

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

A number of other equities research analysts have also weighed in on the company. Morgan Stanley lifted their price objective on Bank of America from $47.00 to $49.00 and gave the stock an "overweight" rating in a research report on Monday, June 23rd. Robert W. Baird reiterated a "neutral" rating and issued a $52.00 price objective on shares of Bank of America in a research report on Friday, June 27th. Phillip Securities lowered Bank of America from a "strong-buy" rating to a "moderate buy" rating in a research report on Friday, July 25th. UBS Group lifted their price target on Bank of America from $46.00 to $50.00 and gave the company a "buy" rating in a research report on Wednesday, April 16th. Finally, Truist Financial lifted their price target on Bank of America from $51.00 to $53.00 and gave the company a "buy" rating in a research report on Wednesday, July 9th. One analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $50.13.

Bank of America Trading Up 0.4%

Shares of BAC stock traded up $0.21 during trading hours on Thursday, reaching $47.45. The company's stock had a trading volume of 4,439,901 shares, compared to its average volume of 42,281,031. The stock has a market capitalization of $351.43 billion, a P/E ratio of 13.87, a P/E/G ratio of 1.84 and a beta of 1.31. Bank of America has a one year low of $33.06 and a one year high of $49.31. The firm's fifty day simple moving average is $46.58 and its 200 day simple moving average is $43.79. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 1.14.

Institutional Trading of Bank of America

A number of hedge funds have recently bought and sold shares of the company. Quaker Wealth Management LLC grew its holdings in Bank of America by 246.5% during the second quarter. Quaker Wealth Management LLC now owns 523 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 880 shares during the period. Nova Wealth Management Inc. grew its holdings in Bank of America by 75.2% during the second quarter. Nova Wealth Management Inc. now owns 529 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 227 shares during the period. RMG Wealth Management LLC bought a new stake in Bank of America during the second quarter valued at about $28,000. CGC Financial Services LLC grew its holdings in Bank of America by 585.4% during the second quarter. CGC Financial Services LLC now owns 610 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 521 shares during the period. Finally, Vega Investment Solutions bought a new stake in Bank of America during the fourth quarter valued at about $30,000. Hedge funds and other institutional investors own 70.71% of the company's stock.

Insider Buying and Selling

In related news, insider James P. Demare sold 148,391 shares of the company's stock in a transaction on Friday, August 1st. The stock was 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 in the company, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.30% of the company's stock.

Bank of America Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 5th will be given a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 2.4%. This is a boost from Bank of America's previous quarterly dividend of $0.26. The ex-dividend date is Friday, September 5th. Bank of America's dividend payout ratio (DPR) is currently 30.41%.

Bank of America declared that its board has authorized a share repurchase program on Wednesday, July 23rd that allows the company to repurchase $40.00 billion in shares. This repurchase authorization allows the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

About Bank of America

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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