Bank of America (NYSE:BAC) Posts Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Bank of America Corporation (NYSE:BAC) issued its earnings results on Tuesday. The financial services provider reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.08, FiscalAI reports. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The business had revenue of $8.08 billion for the quarter, compared to the consensus estimate of $30.78 billion.

Bank of America Stock Performance

Shares of BAC stock opened at $59.49 on Tuesday. Bank of America Corporation has a 52 week low of $44.75 and a 52 week high of $60.83. The company has a market capitalization of $422.18 billion, a price-to-earnings ratio of 14.73, a PEG ratio of 1.00 and a beta of 1.17. The company has a 50-day simple moving average of $54.62 and a 200 day simple moving average of $52.98. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.81 and a current ratio of 0.81.

Bank of America Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 5th were issued a dividend of $0.28 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $1.12 annualized dividend and a dividend yield of 1.9%. Bank of America’s payout ratio is presently 27.72%.

Insiders Place Their Bets

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the completion of the sale, the insider directly owned 1,373,397 shares in the company, valued at $72,803,774.97. This trade represents a 8.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.27% of the stock is currently owned by corporate insiders.

Institutional Trading of Bank of America

Hedge funds have recently added to or reduced their stakes in the company. Wiser Advisor Group LLC bought a new position in Bank of America during the 3rd quarter worth $27,000. CrossGen Wealth LLC bought a new stake in shares of Bank of America in the fourth quarter valued at about $30,000. Osterweis Capital Management Inc. acquired a new position in shares of Bank of America in the third quarter valued at about $36,000. Gilpin Wealth Management LLC acquired a new position in shares of Bank of America in the fourth quarter valued at about $36,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in Bank of America during the fourth quarter worth about $40,000. 70.71% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

BAC has been the subject of a number of recent analyst reports. Piper Sandler increased their price target on shares of Bank of America from $53.00 to $59.00 and gave the company a “neutral” rating in a research note on Thursday, April 16th. HSBC boosted their price objective on shares of Bank of America from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, April 16th. Daiwa Securities Group raised their target price on shares of Bank of America from $58.00 to $61.00 and gave the company an “overweight” rating in a research note on Tuesday, April 28th. Autonomous Res reduced their price target on Bank of America from $62.00 to $54.00 and set a “neutral” rating for the company in a report on Monday, April 6th. Finally, The Goldman Sachs Group boosted their price target on Bank of America from $58.00 to $63.00 and gave the stock a “buy” rating in a research report on Thursday, April 16th. Twenty-one equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $62.19.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Bank of America beat Wall Street’s EPS estimate, reporting $1.21 per share versus $1.13 expected, which supports the view that the bank is still delivering solid profitability. Article Title
• Positive Sentiment: Management also expanded its regional investment banking business with nine senior hires across major U.S. markets, a move that could help strengthen fee generation and middle-market lending over time. Article Title
• Neutral Sentiment: Pre-earnings coverage noted that investors were watching trading revenue, investment banking activity, loan demand, and interest-rate trends closely heading into the report, with expectations relatively high across the large-bank group.
• Neutral Sentiment: Bank of America’s own consumer data showed resilient June spending and wage growth, which reinforces confidence in the retail banking franchise but is not a direct earnings catalyst on its own. Article Title
• Negative Sentiment: Revenue came in well below the cited analyst expectation, suggesting some top-line pressure even though earnings per share exceeded forecasts, which may temper enthusiasm after the headline beat.

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.