Bank of America (NYSE:BAC) Trading 1.3% Higher on Strong Earnings

by · The Cerbat Gem

Shares of Bank of America Co. (NYSE:BAC) traded up 1.3% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $43.30 and last traded at $42.47. 18,181,063 shares were traded during mid-day trading, a decline of 53% from the average session volume of 38,706,770 shares. The stock had previously closed at $41.91.

The financial services provider reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.78 by $0.03. Bank of America had a return on equity of 10.56% and a net margin of 13.28%. The business had revenue of $25.30 billion for the quarter, compared to analyst estimates of $25.25 billion. During the same period in the previous year, the firm earned $0.90 EPS. The firm’s revenue was up .4% compared to the same quarter last year.

Bank of America Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Investors of record on Friday, December 6th will be issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 2.44%. The ex-dividend date of this dividend is Friday, December 6th. Bank of America’s payout ratio is 35.99%.

Bank of America announced that its Board of Directors has initiated a stock buyback program on Wednesday, July 24th that authorizes the company to buyback $25.00 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 7.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Barclays upped their target price on Bank of America from $49.00 to $53.00 and gave the company an “overweight” rating in a research report on Wednesday. Cfra reiterated a “sell” rating and set a $39.00 price objective on shares of Bank of America in a research report on Tuesday, July 16th. Evercore ISI raised their price target on shares of Bank of America from $44.00 to $45.00 and gave the stock an “outperform” rating in a research report on Wednesday. StockNews.com upgraded Bank of America from a “sell” rating to a “hold” rating in a research report on Wednesday. Finally, Seaport Res Ptn raised shares of Bank of America from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 2nd. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $42.62.

Read Our Latest Research Report on BAC

Insider Transactions at Bank of America

In other news, insider Lindsay D. Hans sold 10,901 shares of Bank of America stock in a transaction on Monday, August 5th. The shares were sold at an average price of $36.91, for a total transaction of $402,355.91. Following the transaction, the insider now owns 10,907 shares in the company, valued at approximately $402,577.37. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, insider Lindsay D. Hans sold 10,901 shares of the firm’s stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $36.91, for a total transaction of $402,355.91. Following the completion of the transaction, the insider now directly owns 10,907 shares in the company, valued at $402,577.37. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bernard A. Mensah sold 92,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 27th. The shares were sold at an average price of $39.80, for a total value of $3,661,600.00. Following the completion of the sale, the insider now owns 96,082 shares in the company, valued at $3,824,063.60. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 148,230,389 shares of company stock worth $6,023,064,684. Insiders own 0.29% of the company’s stock.

Hedge Funds Weigh In On Bank of America

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Delos Wealth Advisors LLC lifted its stake in shares of Bank of America by 402.2% in the 1st quarter. Delos Wealth Advisors LLC now owns 683 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 547 shares during the period. Fairway Wealth LLC bought a new position in shares of Bank of America during the 2nd quarter worth approximately $27,000. POM Investment Strategies LLC grew its position in shares of Bank of America by 839.0% during the 2nd quarter. POM Investment Strategies LLC now owns 723 shares of the financial services provider’s stock worth $29,000 after buying an additional 646 shares during the period. Bbjs Financial Advisors LLC bought a new stake in shares of Bank of America in the 2nd quarter valued at $30,000. Finally, Northwest Investment Counselors LLC acquired a new position in shares of Bank of America during the 1st quarter valued at $33,000. Institutional investors and hedge funds own 70.71% of the company’s stock.

Bank of America Stock Performance

The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 1.09. The firm has a market capitalization of $333.23 billion, a P/E ratio of 14.80, a price-to-earnings-growth ratio of 1.39 and a beta of 1.33. The company’s 50 day moving average is $39.72 and its 200-day moving average is $39.35.

Bank of America Company Profile

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Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates in four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

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