Bank of America Corporation (NYSE:BAC) Stock Has Average Target Price of $63.88

Shares of Bank of America Corporation (NYSE:BAC) have earned a consensus recommendation of “Moderate Buy” from the twenty-six analysts that are presently covering the firm, Marketbeat.com reports. Six analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $63.91.

Several research analysts have recently weighed in on the company. Barclays boosted their target price on Bank of America from $71.00 to $72.00 and gave the stock an “overweight” rating in a report on Wednesday, July 15th. HSBC assumed coverage on shares of Bank of America in a research note on Monday, September 28th. They set a “buy” rating and a $65.00 target price for the company. Oppenheimer cut Bank of America from an “outperform” rating to a “market perform” rating in a research report on Tuesday, June 30th. JPMorgan Chase & Co. decreased their price objective on Bank of America from $68.00 to $62.00 and set an “overweight” rating for the company in a research report on Friday. Finally, Argus set a $70.00 price target on Bank of America in a research note on Wednesday, July 15th.

Key Stories Impacting Bank of America

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

• Positive Sentiment: RBC Capital reaffirmed its Buy rating on Bank of America, signaling continued confidence in the bank’s earnings outlook and valuation. RBC Capital Reaffirms Their Buy Rating on Bank of America
• Positive Sentiment: JPMorgan maintained an Overweight rating and Truist kept a Buy rating, although both firms lowered their price targets to $62. The targets still imply roughly 15% upside from the referenced share price, offering some support despite more cautious valuation assumptions.
• Positive Sentiment: Bank of America’s Personal Retirement Strategy surpassed $100 billion in assets, while Merrill Managed exceeded $10 billion. The milestones point to growing demand for fee-generating retirement and wealth-management services. Bank of America Personal Retirement Strategy Surpasses $100 Billion
• Neutral Sentiment: Bank of America strategists warned that a risk-off market could persist until the dollar’s rally peaks. The commentary may pressure market sentiment, but it is primarily a macro outlook rather than a change to BAC’s fundamentals. BofA’s Hartnett Sees Risk-Off Mood Lasting Until Dollar Peaks
• Neutral Sentiment: The Federal Reserve’s proposed stress-test changes could reduce volatility in banks’ capital requirements and improve planning visibility, though the ultimate impact on BAC’s capital returns remains uncertain. Fed Revamps Bank Stress Tests
• Negative Sentiment: Bank stocks have extended their recent decline as Treasury yields rose sharply. Higher rates can increase funding costs, pressure bond portfolios and reduce investor appetite for financial shares. Bank Stocks Extend Second-Half Slump
• Negative Sentiment: Merrill Lynch agreed to pay $39 million to settle claims that customers received below-market interest on idle cash in retirement accounts. The settlement is manageable relative to BAC’s size but adds legal and reputational pressure. Bank of America to Pay $39 Million Settlement

Institutional Investors Weigh In On Bank of America

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Turim 21 Investimentos Ltda. purchased a new position in Bank of America in the second quarter valued at approximately $25,000. Abound Financial LLC purchased a new stake in Bank of America during the fourth quarter worth approximately $26,000. Cherry Tree Wealth Management LLC increased its position in shares of Bank of America by 167.6% in the second quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 300 shares in the last quarter. Principia Wealth Advisory LLC increased its position in shares of Bank of America by 69.9% in the second quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider’s stock worth $30,000 after acquiring an additional 218 shares in the last quarter. Finally, Frazier Financial Advisors LLC purchased a new position in shares of Bank of America in the 2nd quarter valued at $34,000. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America Trading Up 0.0%

NYSE BAC opened at $53.78 on Monday. The company has a market capitalization of $376.04 billion, a price-to-earnings ratio of 12.33, a price-to-earnings-growth ratio of 0.86 and a beta of 1.21. The company’s 50-day simple moving average is $60.89 and its two-hundred day simple moving average is $56.35. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. Bank of America has a one year low of $46.12 and a one year high of $65.22.

Bank of America (NYSE:BAC) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The company had revenue of $31.56 billion during the quarter, compared to analyst estimates of $30.78 billion. During the same quarter in the prior year, the business earned $0.89 earnings per share. Bank of America’s revenue was up 19.6% on a year-over-year basis. Equities analysts forecast that Bank of America will post 4.63 EPS for the current fiscal year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were paid a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend was Friday, September 4th. This is a positive change from Bank of America’s previous quarterly dividend of $0.28. Bank of America’s dividend payout ratio is presently 29.36%.

About Bank of America

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.