Bank of America (NYSE:BAC) Stock Price Down 2.1% – Here’s Why

Shares of Bank of America Corporation (NYSE:BAC) fell 2.1% during mid-day trading on Monday . The stock traded as low as $51.39 and last traded at $51.49. 35,064,293 shares changed hands during trading, a decline of 13% from the average session volume of 40,267,555 shares. The stock had previously closed at $52.61.

Analyst Ratings Changes

A number of research firms have recently commented on BAC. Phillip Securities raised their target price on Bank of America from $50.00 to $56.00 in a research report on Tuesday, October 21st. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $58.00 price target (up previously from $57.00) on shares of Bank of America in a research report on Thursday, October 16th. Wolfe Research raised their price objective on Bank of America from $57.00 to $58.00 and gave the company an “outperform” rating in a report on Tuesday, October 7th. The Goldman Sachs Group cut their price objective on Bank of America from $60.00 to $58.00 and set a “buy” rating for the company in a research report on Monday, October 27th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Bank of America in a research report on Thursday, October 30th. Twenty-three investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Bank of America has an average rating of “Moderate Buy” and an average price target of $57.77.

Bank of America Trading Up 0.8%

The company has a 50 day simple moving average of $51.70 and a 200 day simple moving average of $48.26. The company has a market capitalization of $379.99 billion, a PE ratio of 14.18, a price-to-earnings-growth ratio of 1.99 and a beta of 1.34. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.79 and a current ratio of 0.79.

Bank of America (NYSE:BAC) last issued its quarterly earnings results on Wednesday, October 15th. The financial services provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.93 by $0.13. Bank of America had a return on equity of 10.76% and a net margin of 15.70%.The firm had revenue of $5.35 billion for the quarter, compared to analyst estimates of $27.05 billion. During the same period in the previous year, the company posted $0.81 earnings per share. The business’s revenue was up 10.8% on a year-over-year basis. Analysts anticipate that Bank of America Corporation will post 3.7 earnings per share for the current year.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 26th. Shareholders of record on Friday, December 5th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Friday, December 5th. Bank of America’s payout ratio is 30.52%.

Bank of America announced that its board has initiated a share buyback program on Wednesday, July 23rd that allows the company to buyback $40.00 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 11.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Bank of America

Hedge funds and other institutional investors have recently modified their holdings of the business. Boston Common Asset Management LLC lifted its position in shares of Bank of America by 10.5% during the second quarter. Boston Common Asset Management LLC now owns 259,680 shares of the financial services provider’s stock worth $12,288,000 after purchasing an additional 24,740 shares in the last quarter. Disciplined Investments LLC purchased a new stake in Bank of America during the 2nd quarter worth $217,000. Nicholas Hoffman & Company LLC. lifted its holdings in Bank of America by 121.0% in the 1st quarter. Nicholas Hoffman & Company LLC. now owns 62,041 shares of the financial services provider’s stock worth $2,589,000 after buying an additional 33,963 shares in the last quarter. Sunbeam Capital Management LLC boosted its position in Bank of America by 7.3% in the 2nd quarter. Sunbeam Capital Management LLC now owns 6,476 shares of the financial services provider’s stock valued at $306,000 after buying an additional 439 shares during the last quarter. Finally, CCG Wealth Management LLC acquired a new stake in shares of Bank of America during the second quarter valued at about $287,000. 70.71% of the stock is owned by hedge funds and other institutional investors.

Bank of America Company Profile

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.