Bank of America (NYSE:BAC) Shares Up 1.6% – Still a Buy?

Shares of Bank of America Corporation (NYSE:BAC) were up 1.6% during trading on Tuesday . The stock traded as high as $57.07 and last traded at $56.7870. 33,103,107 shares changed hands during trading, a decline of 15% from the average session volume of 39,162,754 shares. The stock had previously closed at $55.87.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Bank of America continues to screen as a value-and-income name, with articles highlighting its 2% dividend yield and the possibility of boosting returns through options strategies, which may keep income-focused investors interested. Article Title
• Positive Sentiment: BAC was also featured among stocks generating strong cash flow, and Reuters-linked commentary suggested second-quarter markets revenue could exceed prior expectations, supported by strength in equities trading. Article Title
• Positive Sentiment: Coverage noted that Bank of America remains in a technical buy zone after strong recent gains, with demand still appearing solid despite the stock’s sharp multi-year run. Article Title
• Positive Sentiment: Bank of America’s public finance executive said AI could expand the bank’s domination in municipal underwriting, pointing to a potential long-term efficiency and market-share tailwind. Article Title
• Neutral Sentiment: Several articles focused on broader macro issues—Fed policy, Basel relief, Treasury liquidity, and bank-sector rate sensitivity—which may affect BAC, but these are industry-wide factors rather than company-specific catalysts. Article Title
• Neutral Sentiment: Independent commentary also noted BAC may be looking stretched after a strong run, suggesting some investors could be pausing to reassess valuation rather than adding aggressively. Article Title
• Negative Sentiment: Some recent commentary warns that higher rates can be a mixed bag for banks, potentially helping net interest income while also raising funding costs, credit risk, and pressure on securities portfolios. Article Title

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on BAC. JPMorgan Chase & Co. decreased their price target on shares of Bank of America from $61.50 to $57.50 and set an “overweight” rating on the stock in a report on Tuesday, April 7th. UBS Group increased their price objective on shares of Bank of America from $62.00 to $63.00 in a research report on Wednesday, May 6th. Robert W. Baird lifted their target price on Bank of America from $56.00 to $58.00 and gave the stock a “neutral” rating in a research report on Thursday, April 16th. Jefferies Financial Group upped their price target on shares of Bank of America from $60.00 to $65.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Finally, Daiwa Securities Group increased their target price on Bank of America from $58.00 to $61.00 and gave the stock an “overweight” rating in a report on Tuesday, April 28th. Twenty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Bank of America currently has a consensus rating of “Moderate Buy” and an average price target of $61.06.

Bank of America Price Performance

The company has a debt-to-equity ratio of 1.18, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market capitalization of $399.27 billion, a price-to-earnings ratio of 13.93, a price-to-earnings-growth ratio of 0.96 and a beta of 1.18. The company has a 50-day simple moving average of $52.70 and a two-hundred day simple moving average of $52.49.

Bank of America (NYSE:BAC) last announced its quarterly earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $30.27 billion during the quarter, compared to the consensus estimate of $29.72 billion. During the same quarter in the previous year, the company posted $0.90 earnings per share. The company’s revenue for the quarter was up 10.7% compared to the same quarter last year. On average, equities research analysts predict that Bank of America Corporation will post 4.45 earnings per share for the current year.

Bank of America Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Shareholders of record on Friday, June 5th will be given a $0.28 dividend. The ex-dividend date is Friday, June 5th. This represents a $1.12 annualized dividend and a yield of 2.0%. Bank of America’s dividend payout ratio is 27.72%.

Insider Buying and Selling at Bank of America

In other news, insider Geoffrey S. Greener sold 126,756 shares of Bank of America stock in a transaction that occurred on Tuesday, May 5th. The stock was 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 of the company’s stock, valued at approximately $72,803,774.97. The trade was a 8.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Company insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On Bank of America

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB lifted its position in shares of Bank of America by 53.0% during the 4th quarter. Handelsbanken Fonder AB now owns 4,629,553 shares of the financial services provider’s stock valued at $254,625,000 after acquiring an additional 1,603,080 shares during the last quarter. Mufg Securities Americas Inc. boosted its stake in shares of Bank of America by 26.6% during the 3rd quarter. Mufg Securities Americas Inc. now owns 198,918 shares of the financial services provider’s stock worth $10,262,000 after acquiring an additional 41,809 shares in the last quarter. B. Metzler seel. Sohn & Co. AG grew its holdings in shares of Bank of America by 11.2% in the 3rd quarter. B. Metzler seel. Sohn & Co. AG now owns 677,919 shares of the financial services provider’s stock worth $34,974,000 after acquiring an additional 68,093 shares during the last quarter. Constant Guidance Financial LLC grew its holdings in shares of Bank of America by 603.4% in the 3rd quarter. Constant Guidance Financial LLC now owns 24,283 shares of the financial services provider’s stock worth $1,253,000 after acquiring an additional 20,831 shares during the last quarter. Finally, Jupiter Asset Management Ltd. acquired a new stake in shares of Bank of America during the third quarter worth $27,629,000. 70.71% of the stock is owned by institutional investors.

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.