Zacks Investment Research downgraded shares of Bank of America Corporation (NYSE:BAC) from a hold rating to a sell rating in a report published on Tuesday morning.
According to Zacks, “Bank of America’s shares have outperformed the industry, over the past six months. This price performance is backed by impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Yet, dismal fee income growth remains a key concern. Specifically, fall in mortgage banking income owing to lower volumes and decline in refinancing along with uncertainty related to performance of capital markets make us apprehensive. Gloomy outlook for trading revenues is a concern as well. However, rising interest rates, increase in loan and deposit balances, and efforts to streamline and simplify operations are expected to continue supporting the company's profitability.”
Several other research firms have also recently commented on BAC. BidaskClub raised shares of Bank of America Corporation from a sell rating to a hold rating in a research note on Friday, August 4th. CIBC reaffirmed an outperform rating on shares of Bank of America Corporation in a research note on Tuesday, July 11th. Keefe, Bruyette & Woods reaffirmed an outperform rating on shares of Bank of America Corporation in a research note on Tuesday, July 4th. Vetr cut shares of Bank of America Corporation from a buy rating to a hold rating and set a $24.19 target price for the company. in a research note on Wednesday, June 28th. Finally, Jefferies Group LLC reaffirmed a buy rating and issued a $28.00 target price on shares of Bank of America Corporation in a research note on Friday, August 11th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating, twenty-two have given a buy rating and two have assigned a strong buy rating to the company’s stock. Bank of America Corporation presently has an average rating of Buy and a consensus price target of $24.88.
Shares of Bank of America Corporation (BAC) opened at 25.45 on Tuesday. The stock has a market capitalization of $267.64 billion, a price-to-earnings ratio of 15.16 and a beta of 1.25. The stock has a 50 day moving average price of $24.65 and a 200-day moving average price of $23.91. Bank of America Corporation has a 52-week low of $15.90 and a 52-week high of $26.30.
Bank of America Corporation (NYSE:BAC) last released its earnings results on Tuesday, July 18th. The financial services provider reported $0.46 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.43 by $0.03. The firm had revenue of $22.80 billion during the quarter, compared to analysts’ expectations of $21.84 billion. Bank of America Corporation had a net margin of 20.28% and a return on equity of 8.11%. Bank of America Corporation’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.41 EPS. On average, equities research analysts predict that Bank of America Corporation will post $1.79 EPS for the current fiscal year.
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The company also recently announced a quarterly dividend, which was paid on Friday, September 29th. Shareholders of record on Friday, September 1st were given a $0.12 dividend. This is a boost from Bank of America Corporation’s previous quarterly dividend of $0.08. The ex-dividend date was Wednesday, August 30th. This represents a $0.48 annualized dividend and a yield of 1.89%. Bank of America Corporation’s dividend payout ratio is 28.57%.
Bank of America Corporation declared that its board has initiated a stock repurchase plan on Wednesday, June 28th that authorizes the company to repurchase $12.00 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 4.8% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.
In other news, Director Frank P. Bramble sold 86,763 shares of the stock in a transaction that occurred on Thursday, August 10th. The shares were sold at an average price of $24.16, for a total value of $2,096,194.08. Following the completion of the transaction, the director now directly owns 50,000 shares in the company, valued at $1,208,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.18% of the company’s stock.
Several institutional investors have recently bought and sold shares of the company. Fulton Bank N.A. boosted its holdings in shares of Bank of America Corporation by 3.5% in the third quarter. Fulton Bank N.A. now owns 111,092 shares of the financial services provider’s stock valued at $2,815,000 after acquiring an additional 3,807 shares in the last quarter. Beacon Financial Group boosted its holdings in shares of Bank of America Corporation by 68.4% in the third quarter. Beacon Financial Group now owns 26,606 shares of the financial services provider’s stock valued at $674,000 after acquiring an additional 10,807 shares in the last quarter. Neville Rodie & Shaw Inc. boosted its holdings in shares of Bank of America Corporation by 5.4% in the third quarter. Neville Rodie & Shaw Inc. now owns 54,537 shares of the financial services provider’s stock valued at $1,382,000 after acquiring an additional 2,802 shares in the last quarter. Park National Corp OH boosted its holdings in shares of Bank of America Corporation by 2.9% in the third quarter. Park National Corp OH now owns 896,822 shares of the financial services provider’s stock valued at $22,725,000 after acquiring an additional 25,202 shares in the last quarter. Finally, MPS Loria Financial Planners LLC bought a new position in shares of Bank of America Corporation in the second quarter valued at approximately $115,000. Institutional investors and hedge funds own 61.64% of the company’s stock.
About Bank of America Corporation
Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S.
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