Bank of America (NYSE:BAC) Trading 2% Higher – Here’s Why

Bank of America Corporation (NYSE:BAC) traded up 2% during trading on Tuesday . The stock traded as high as $51.83 and last traded at $52.4970. 34,291,743 shares changed hands during mid-day trading, a decline of 3% from the average session volume of 35,303,432 shares. The stock had previously closed at $51.4840.

Key Bank of America News

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

• Positive Sentiment: Recent commentary highlighted Bank of America’s strong deposit franchise as a key long-term advantage, reinforcing the view that BAC has a durable funding base and earnings power. Bank of America’s Deposit Franchise Is the Hidden Asset Investors Keep Missing
• Positive Sentiment: A separate article said Bank of America Securities sees growth opportunities in areas like AI-driven demand and stronger activity across investment banking and markets, which supports the broader bullish case for BAC’s research franchise and client business. AI will expand opportunities for Indian IT; luxury housing demand remains strong: BofA Securities
• Positive Sentiment: Bank of America was also mentioned in a favorable note on “capital flow” and banking strength, which may be helping sentiment around the stock’s valuation and earnings durability. Bank of America: Let The Capital Flow To Your Portfolio With This Banking Powerhouse
• Neutral Sentiment: One update noted that Bank of America’s latest analyst action on BAC left the price target unchanged, which does not add a fresh bullish or bearish catalyst but suggests analysts are holding steady on their outlook. How A Flat Price Target Is Shaping The Story For Bank Of America (BAC)
• Neutral Sentiment: News that former Epstein banker Paul Morris left Merrill is more of a reputational/housekeeping headline than a direct financial driver for BAC, so the market impact is likely limited. Former Epstein banker Paul Morris leaves Bank of America’s Merrill unit – report
• Negative Sentiment: Broader Bloomberg coverage said Wall Street analysts are becoming more skeptical after the recent stock rally, which could temper enthusiasm for financials including BAC if the market turns more cautious. Wall Street Analysts Turn Skeptical After Two-Month Stocks Rally

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $59.00 target price on shares of Bank of America in a research note on Thursday, April 16th. Keefe, Bruyette & Woods lifted their target price on shares of Bank of America from $63.00 to $64.00 and gave the stock an “outperform” rating in a research note on Thursday, April 16th. Erste Group Bank downgraded shares of Bank of America from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Oppenheimer lifted their target price on shares of Bank of America from $58.00 to $61.00 and gave the stock an “outperform” rating in a research note on Thursday, April 16th. Finally, Morgan Stanley decreased their target price on shares of Bank of America from $67.00 to $61.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 31st. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Bank of America presently has an average rating of “Moderate Buy” and a consensus price target of $61.06.

Bank of America Trading Up 1.9%

The stock has a market cap of $372.55 billion, a P/E ratio of 12.99, a PEG ratio of 0.87 and a beta of 1.21. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.18. The stock’s fifty day moving average price is $51.20 and its 200 day moving average price is $52.30.

Bank of America (NYSE:BAC) last announced its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.11. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The firm had revenue of $30.27 billion for the quarter, compared to analysts’ expectations of $29.72 billion. During the same quarter in the previous year, the business posted $0.90 EPS. The company’s quarterly revenue was up 10.7% on a year-over-year basis. Equities research analysts expect that Bank of America Corporation will post 4.45 earnings per share for the current year.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date is Friday, June 5th. Bank of America’s payout ratio is 27.72%.

Insider Buying and Selling at Bank of America

In other news, insider James P. Demare sold 83,832 shares of the business’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $50.00, for a total transaction of $4,191,600.00. Following the sale, the insider owned 307,240 shares in the company, valued at approximately $15,362,000. The trade was a 21.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Geoffrey S. Greener sold 126,756 shares of the business’s stock in a transaction 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 sale, the insider owned 1,373,397 shares in the company, valued at approximately $72,803,774.97. This trade represents a 8.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 354,588 shares of company stock worth $17,814,296. Corporate insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On Bank of America

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in shares of Bank of America by 3.7% in the 4th quarter. Vanguard Group Inc. now owns 651,076,825 shares of the financial services provider’s stock worth $35,809,225,000 after purchasing an additional 23,351,183 shares during the last quarter. Capital World Investors raised its position in shares of Bank of America by 11.0% in the 3rd quarter. Capital World Investors now owns 144,371,118 shares of the financial services provider’s stock worth $7,448,816,000 after purchasing an additional 14,275,810 shares during the last quarter. Norges Bank purchased a new position in shares of Bank of America in the 4th quarter worth about $4,774,210,000. Bank of New York Mellon Corp raised its position in shares of Bank of America by 5.4% in the 4th quarter. Bank of New York Mellon Corp now owns 57,619,317 shares of the financial services provider’s stock worth $3,169,062,000 after purchasing an additional 2,929,779 shares during the last quarter. Finally, Fisher Asset Management LLC raised its position in shares of Bank of America by 2.1% in the 4th quarter. Fisher Asset Management LLC now owns 53,783,821 shares of the financial services provider’s stock worth $2,958,110,000 after purchasing an additional 1,105,833 shares during the last quarter. Hedge funds and other 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.