Bank of America (NYSE:BAC) Shares Gap Down – Time to Sell?

Bank of America Corporation (NYSE:BAC)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $54.54, but opened at $52.88. Bank of America shares last traded at $51.9240, with a volume of 24,045,211 shares traded.

More Bank of America News

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

• Positive Sentiment: Q4 beat driven by net interest income and trading — BAC posted $0.98 EPS and revenue above estimates, with trading revenues climbing and consumer spending up, supporting near?term earnings quality. Read More.
• Positive Sentiment: Trading and NII strength: management highlighted rising net interest income and continued equities/trading gains (trading revenue streak), which helped the beat and points to fee + rate tailwinds. Read More.
• Neutral Sentiment: CEO commentary was upbeat on the U.S. economy, which can reassure investors on consumer trends but doesn’t change near?term guidance. Read More.
• Neutral Sentiment: Technical/flow signals: some analysts note BAC has fallen back to prior resistance that may act as technical support — a mixed short-term technical picture for traders. Read More.
• Negative Sentiment: Disappointing forward commentary / weak investment banking: several outlets report management’s guidance and softer IB outlook overshadowed the beat, triggering profit?taking. Read More.
• Negative Sentiment: Market and macro headwinds: softer-than-expected PPI and a broadly weaker open pressured bank stocks and risk appetite, amplifying BAC’s downside after the print. Read More.
• Negative Sentiment: Policy/regulatory risk remains: proposals to cap credit-card rates are keeping regulatory risk in focus for banks, a possible longer?term headwind for net yields and card income. Read More.
• Negative Sentiment: Market reaction: headlines note this is one of BAC’s sharper intraday selloffs tied to the mix of guidance, weak IB, and broader bank?stock pressure. Read More.

Analysts Set New Price Targets

Several analysts have recently weighed in on BAC shares. Wells Fargo & Company increased their price target on shares of Bank of America from $62.00 to $65.00 and gave the company an “overweight” rating in a research note on Monday, January 5th. Truist Financial boosted their price objective on Bank of America from $58.00 to $62.00 and gave the company a “buy” rating in a report on Tuesday, January 6th. Barclays raised their price objective on shares of Bank of America from $59.00 to $71.00 and gave the company an “overweight” rating in a research note on Monday, January 5th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Bank of America from $56.00 to $58.00 and gave the company a “buy” rating in a report on Tuesday, September 30th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Bank of America in a report on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $59.91.

Bank of America Trading Down 4.8%

The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.79 and a current ratio of 0.79. The company’s 50-day moving average price is $54.19 and its 200-day moving average price is $51.14. The firm has a market capitalization of $378.96 billion, a PE ratio of 14.14 and a beta of 1.29.

Bank of America (NYSE:BAC) last announced its quarterly earnings results on Wednesday, January 14th. The financial services provider reported $0.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.02. The company had revenue of $28.53 billion during the quarter, compared to the consensus estimate of $27.73 billion. Bank of America had a return on equity of 10.76% and a net margin of 15.70%.Bank of America’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.82 EPS. On average, sell-side analysts expect that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, December 26th. Shareholders of record on Friday, December 5th were paid a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 2.2%. The ex-dividend date was Friday, December 5th. Bank of America’s dividend payout ratio is currently 30.52%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Permanent Capital Management LP acquired a new stake in Bank of America during the third quarter worth about $649,000. Boston Common Asset Management LLC lifted its position in shares of Bank of America by 10.5% in the 2nd quarter. Boston Common Asset Management LLC now owns 259,680 shares of the financial services provider’s stock worth $12,288,000 after acquiring an additional 24,740 shares during the period. Disciplined Investments LLC acquired a new stake in shares of Bank of America during the 2nd quarter worth approximately $217,000. Sunbeam Capital Management LLC increased its position in shares of Bank of America by 7.3% during the second quarter. Sunbeam Capital Management LLC now owns 6,476 shares of the financial services provider’s stock valued at $306,000 after purchasing an additional 439 shares during the period. Finally, CCG Wealth Management LLC acquired a new position in shares of Bank of America in the second quarter valued at $287,000. Institutional investors and hedge funds 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.