Bank of America Corporation (NYSE:BAC) experienced a 1.7% increase in share price during mid-day trading on Friday, with the stock peaking at $55.99 before closing at $55.94. Approximately 25,265,571 shares exchanged hands, reflecting a 26% decline from the average session volume of 34,282,632 shares. This uptick follows a previous closing price of $55.00.
Analysts have recently revisited their positions on the financial giant, contributing to the stock’s positive momentum. Keefe, Bruyette & Woods raised their target price from $58.00 to $64.00, assigning an “outperform” rating in a note dated December 17, 2023. Similarly, Erste Group Bank upgraded the stock from “hold” to “buy” on October 3, 2023. Seaport Global Securities also elevated their target from $59.00 to $66.00, while Truist Financial increased its target from $56.00 to $58.00. In a report on September 30, 2023, Deutsche Bank Aktiengesellschaft raised their price target to $58.00 with a “buy” rating.
Currently, 23 analysts have rated Bank of America with a “buy” rating, while five have issued a “hold” rating. According to data from MarketBeat.com, the consensus rating for the stock is a “Moderate Buy” with a target price of $58.59.
Recent Earnings and Dividend Announcement
Bank of America reported its latest earnings results on October 15, 2023, revealing earnings of $1.06 per share, surpassing analysts’ expectations of $0.93 by $0.13. The firm’s revenue for the quarter was $5.35 billion, which is lower than the estimated $27.05 billion. The company recorded a net margin of 15.70% and a return on equity of 10.76%, marking a 10.8% increase in revenue compared to the same quarter last year, when earnings per share stood at $0.81. Analysts forecast Bank of America will post earnings of $3.70 per share for the current fiscal year.
In addition to its earnings report, Bank of America announced a quarterly dividend of $0.28 per share, which was paid on December 26, 2023. Investors on record as of December 5, 2023 received this dividend, with an annualized yield of 2.0%. The firm’s dividend payout ratio stands at 30.52%.
Institutional Investor Activity
Recent activity among institutional investors indicates a growing interest in Bank of America. Insight Wealth Strategies LLC increased its stake by 19.4% in the fourth quarter, now holding 6,265 shares valued at $345,000. RIA Advisory Group LLC also entered a new position worth $210,000 during the third quarter.
Other notable movements include Triumph Capital Management, which acquired shares worth $58,000, and AIA Group Ltd, which raised its holdings by 61.2%, now owning 394,359 shares valued at $20.35 million. Keel Point LLC also increased its stake by 2.4% during the same period, now holding 44,738 shares valued at $2.31 million.
As of now, institutional investors own approximately 70.71% of Bank of America’s stock.
Bank of America, headquartered in Charlotte, North Carolina, is a multinational financial services company providing a wide range of banking and investment services, including lending, deposits, and advisory solutions for individuals, small businesses, and large corporations alike.
