Bank of America Corporation (NYSE:BAC) witnessed a share price increase of 1.1% on Friday, reaching a peak of $51.78 before closing at $51.54. During mid-day trading, approximately 43,655,110 shares exchanged hands, marking a 9% rise compared to the average session volume of 40,191,203 shares. The stock had previously closed at $51.00.
Analysts from various brokerages have recently shared optimistic projections regarding Bank of America. On October 21, 2023, Phillip Securities raised its price target for the stock from $50.00 to $56.00. In a report dated October 16, Evercore ISI increased its target price from $55.00 to $57.00 and assigned an “outperform” rating. TD Cowen also adjusted its forecast, raising the target from $61.00 to $64.00 with a “buy” rating as of November 6. Similarly, JPMorgan Chase & Co. increased its price target from $55.00 to $58.00 on October 31, while HSBC raised its objective from $51.00 to $53.00 on October 2, maintaining a “hold” rating. Overall, twenty-three analysts have issued a “buy” rating for the stock, while five have assigned a “hold” rating. According to MarketBeat, the average rating stands at “Moderate Buy,” with a mean price target of $57.77.
Bank of America recently announced its earnings results for the third quarter on October 15, 2023. The financial institution reported $1.06 earnings per share (EPS), surpassing the consensus estimate of $0.93 by $0.13. The company achieved a return on equity of 10.76% and a net margin of 15.70%. Revenue for the quarter reached $27.05 billion, reflecting a 10.8% increase compared to the same quarter last year, when it reported $0.81 EPS.
In addition to earnings, Bank of America declared a quarterly dividend of $0.28 per share, set to be paid on December 26, 2023. Shareholders on record as of December 5 will receive this dividend, which represents an annualized rate of $1.12 and a yield of 2.2%. The ex-dividend date is also December 5, and the company’s dividend payout ratio currently stands at 30.52%.
Institutional investors have shown increased interest in Bank of America. Brighton Jones LLC raised its stake in the company by 30.0% during the fourth quarter, now holding 108,872 shares valued at $4,785,000. Northern Financial Advisors Inc. expanded its position by 1.8% in the first quarter, owning 14,383 shares valued at $600,000. PFG Advisors also increased their holdings by 3.8%, now owning 24,413 shares worth $1,019,000. Venturi Wealth Management LLC raised its position by 4.9%, owning 27,942 shares valued at $1,166,000. A significant 70.71% of Bank of America’s stock is currently held by hedge funds and institutional investors.
Bank of America Corporation operates globally, providing a wide range of banking and financial services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. The company functions through four main segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.
As the market responds to these developments, investors will be watching closely to see how Bank of America’s stock performs in the coming weeks and months.
