Bank of America (NYSE:BAC) Stock Price Down 2.2% – Here’s Why

Bank of America Corporation (NYSE:BAC)’s stock price was down 2.2% during mid-day trading on Friday. The stock traded as low as $49.78 and last traded at $50.03. 42,000,245 shares traded hands during mid-day trading, an increase of 12% from the average daily volume of 37,614,684 shares. The stock had previously closed at $51.14.

Key Bank of America News

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

• Positive Sentiment: Bank of America’s expansion into Wisconsin, with additional branch plans for Alabama and Louisiana, could support long-term deposit growth and customer relationships. Its investments in artificial intelligence and operating efficiency may also improve profitability. BofA adds Wisconsin to branch map, with more states to come
• Positive Sentiment: Some market commentary suggests BAC may be undervalued after its pullback, with potential upside if returns on capital remain solid and the bank benefits from financing growth in artificial intelligence and other sectors. Bank of America Stock May Be 40% Undervalued After AI Financing News
• Neutral Sentiment: Bank of America strategist Michael Hartnett said bonds issued by large technology companies may offer better risk-reward than their stocks. The view highlights BAC’s research capabilities but is not a direct earnings catalyst for the company. Bank of America says big tech bonds offer more opportunity than stocks
• Negative Sentiment: Senator Elizabeth Warren is urging the Justice Department to investigate Bank of America and potentially its executives over alleged willful anti-money-laundering violations. The push follows a reported $1.21 billion regulatory penalty and raises the risk of additional legal costs, penalties and reputational damage. Warren urges DOJ criminal probe of Bank of America
• Negative Sentiment: Bank of America is facing a lawsuit challenging its use of mandatory arbitration in employee disputes, adding another layer of litigation risk. Bank of America sued over mandatory arbitration for employee disputes
• Negative Sentiment: Multiple law firms are soliciting investors to join securities-fraud class actions covering purchases made between August 1, 2025 and October 13, 2026, with a lead-plaintiff deadline of December 15. These announcements intensify investor concern, although they are allegations and do not establish liability. Kaplan Fox investor announcement

Analyst Ratings Changes

BAC has been the topic of a number of research reports. JPMorgan Chase & Co. cut their price objective on shares of Bank of America from $68.00 to $62.00 and set an “overweight” rating on the stock in a research note on Friday, October 2nd. Truist Financial reduced their price target on shares of Bank of America from $62.00 to $58.00 and set a “buy” rating on the stock in a research report on Thursday, October 15th. Citigroup dropped their price objective on Bank of America from $66.00 to $60.00 and set a “buy” rating on the stock in a report on Thursday, October 15th. TD Cowen dropped their price target on Bank of America from $60.00 to $56.00 and set a “hold” rating on the stock in a research report on Thursday, October 15th. Finally, Keefe, Bruyette & Woods reduced their price target on shares of Bank of America from $70.00 to $65.00 and set an “outperform” rating for the company in a research report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, Bank of America presently has a consensus rating of “Moderate Buy” and a consensus price target of $62.82.

Bank of America Price Performance

The company’s 50-day moving average is $56.68 and its 200-day moving average is $54.99. The firm has a market capitalization of $349.85 billion, a price-to-earnings ratio of 11.88, a PEG ratio of 0.89 and a beta of 1.21. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.82 and a quick ratio of 0.82.

Bank of America (NYSE:BAC) last posted its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share for the quarter, missing analysts’ consensus estimates of $1.10 by ($0.02). The company had revenue of $29.96 billion for the quarter, compared to analysts’ expectations of $30.58 billion. Bank of America had a return on equity of 12.15% and a net margin of 16.80%. The business’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period in the prior year, the business earned $1.06 EPS. On average, research analysts expect that Bank of America Corporation will post 4.52 earnings per share for the current year.

Bank of America Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 24th. Stockholders of record on Friday, December 4th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, December 4th. Bank of America’s dividend payout ratio is presently 30.40%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Legal & General Group Plc acquired a new stake in shares of Bank of America during the second quarter valued at about $2,571,060,000. Amundi grew its stake in Bank of America by 12.5% during the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider’s stock valued at $2,066,274,000 after purchasing an additional 4,721,969 shares in the last quarter. Deutsche Bank AG acquired a new stake in Bank of America during the 2nd quarter valued at approximately $2,359,172,000. Bank of New York Mellon Corp purchased a new stake in Bank of America during the 2nd quarter worth approximately $2,313,953,000. Finally, Dimensional Fund Advisors LP increased its holdings in Bank of America by 1.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider’s stock worth $1,517,599,000 after purchasing an additional 561,413 shares during the last quarter. Institutional investors and hedge funds own 70.71% of the company’s stock.

About Bank of America

Bank of America Corporation (NYSE: BAC) is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company’s consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.