Bank of America (NYSE:BAC) Stock Price Up 1% – Time to Buy?

Shares of Bank of America Corporation (NYSE:BAC) shot up 1% during trading on Wednesday . The company traded as high as $63.55 and last traded at $62.6260. Approximately 27,135,863 shares traded hands during trading, a decline of 27% from the average session volume of 37,087,512 shares. The stock had previously closed at $61.99.

Key Bank of America News

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

• Positive Sentiment: Expectations for higher interest rates and concerns about artificial-intelligence-related valuations are encouraging investors to rotate into large bank stocks. Higher rates could support BAC’s net interest income, while banks are viewed as relatively attractive compared with expensive technology shares. Expectations of Rising Rates and Worries About AI Have Investors Piling Into Big Bank Stocks
• Positive Sentiment: BAC is among 21 financial institutions planning to form a company and launch a U.S.-dollar stablecoin in the first half of 2027. The initiative could give Bank of America a role in blockchain-based payments, liquidity, and transaction services, although revenue potential remains uncertain. Goldman Sachs, BofA and others plan to issue dollar stablecoin together in 2027
• Positive Sentiment: One valuation analysis estimates Bank of America may be about 31% undervalued based on intrinsic-value assumptions. That view could support the shares if investors believe the bank’s strong multiyear performance and stablecoin plans are not fully reflected in its valuation. Bank of America (BAC) Stock May Be 31% Undervalued Despite Stablecoin Plans
• Neutral Sentiment: Bank of America said the search for yield is reshaping credit markets, increasing demand for high-quality bonds and changing how investors manage risk. The commentary is relevant to BAC’s markets business but does not provide a specific earnings outlook. The hunt for yield is changing how investors trade credit: BofA
• Neutral Sentiment: Regulatory filings reported that BAC, through Merrill Lynch, reduced indirect stakes in several Turkish companies. These appear to be client or investment-position transactions rather than changes to Bank of America’s core operations, so the direct stock impact is likely limited.
• Negative Sentiment: Berkshire Hathaway has continued reducing its Bank of America position, with selling reported for eight consecutive quarters. Although the sales may reflect portfolio rebalancing or profit-taking, continued divestment can weigh on sentiment by removing a prominent shareholder’s support. Warren Buffett’s Successor, Greg Abel, Started His Tenure With a Bang by Paring Down Bank of America

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Argus set a $70.00 price objective on Bank of America in a report on Wednesday, July 15th. Keefe, Bruyette & Woods upped their price objective on Bank of America from $67.00 to $70.00 and gave the company an “outperform” rating in a research note on Wednesday, July 15th. Citigroup increased their price objective on shares of Bank of America from $62.00 to $66.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Truist Financial upped their price objective on shares of Bank of America from $64.00 to $65.00 and gave the company a “buy” rating in a report on Wednesday, July 15th. Finally, UBS Group lifted their price target on Bank of America from $68.00 to $70.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Twenty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $64.08.

Bank of America Price Performance

The business has a 50 day simple moving average of $61.35 and a two-hundred day simple moving average of $55.01. The firm has a market capitalization of $437.93 billion, a P/E ratio of 14.36, a price-to-earnings-growth ratio of 0.99 and a beta of 1.16. 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 (NYSE:BAC) last issued its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $31.56 billion during the quarter, compared to analyst estimates of $30.78 billion. During the same quarter in the previous year, the company posted $0.89 earnings per share. The company’s revenue was up 19.6% compared to the same quarter last year. On average, sell-side analysts expect that Bank of America Corporation will post 4.68 EPS for the current fiscal year.

Bank of America Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.32 dividend. This is an increase from Bank of America’s previous quarterly dividend of $0.28. This represents a $1.28 annualized dividend and a yield of 2.0%. The ex-dividend date is Friday, September 4th. Bank of America’s dividend payout ratio is 25.69%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in BAC. Handelsbanken Fonder AB grew its position in shares of Bank of America by 53.0% in the 4th quarter. Handelsbanken Fonder AB now owns 4,629,553 shares of the financial services provider’s stock worth $254,625,000 after buying an additional 1,603,080 shares during the last quarter. Bamco Inc. NY grew its position in Bank of America by 45.4% during the 2nd quarter. Bamco Inc. NY now owns 40,994 shares of the financial services provider’s stock worth $2,336,000 after purchasing an additional 12,794 shares during the period. E Fund Management Co. Ltd. acquired a new position in Bank of America in the second quarter valued at approximately $4,089,000. Bernicke Wealth Management Ltd. purchased a new stake in Bank of America during the second quarter worth $2,132,000. Finally, Legal & General Group Plc boosted its position in Bank of America by 3.4% during the fourth quarter. Legal & General Group Plc now owns 45,411,913 shares of the financial services provider’s stock worth $2,497,655,000 after purchasing an additional 1,487,809 shares in the last quarter. Institutional investors own 70.71% of the company’s stock.

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.