Erste Group Bank Expects Weaker Earnings for Bank of America

Bank of America Corporation (NYSE:BAC) – Equities researchers at Erste Group Bank cut their FY2026 EPS estimates for Bank of America in a research note issued to investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now anticipates that the financial services provider will post earnings of $4.55 per share for the year, down from their prior forecast of $4.64. The consensus estimate for Bank of America’s current full-year earnings is $4.61 per share. Erste Group Bank also issued estimates for Bank of America’s FY2027 earnings at $5.22 EPS.

Several other brokerages have also weighed in on BAC. Keefe, Bruyette & Woods lifted their target price on shares of Bank of America from $67.00 to $70.00 and gave the company an “outperform” rating in a research report on Wednesday, July 15th. Robert W. Baird raised their price target on shares of Bank of America from $58.00 to $62.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 15th. Oppenheimer cut shares of Bank of America from an “outperform” rating to a “market perform” rating in a research note on Tuesday, June 30th. Truist Financial decreased their price objective on Bank of America from $65.00 to $62.00 and set a “buy” rating on the stock in a report on Thursday, October 1st. Finally, TD Cowen initiated coverage on Bank of America in a research note on Thursday, October 8th. They issued a “hold” rating and a $60.00 price objective on the stock. Nineteen equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $64.22.

Bank of America Price Performance

NYSE:BAC opened at $54.53 on Tuesday. The company has a 50-day moving average of $59.93 and a 200-day moving average of $56.63. The company has a market capitalization of $381.31 billion, a price-to-earnings ratio of 12.51, a PEG ratio of 0.87 and a beta of 1.21. Bank of America has a 52 week low of $46.12 and a 52 week high of $65.22. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83.

Bank of America (NYSE:BAC) last announced its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.08. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The firm had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. During the same quarter in the previous year, the firm posted $0.89 EPS. The business’s revenue for the quarter was up 19.6% on a year-over-year basis.

Institutional Trading of Bank of America

Several large investors have recently added to or reduced their stakes in BAC. Turim 21 Investimentos Ltda. bought a new stake in shares of Bank of America during the second quarter worth $25,000. Abound Financial LLC acquired a new stake in shares of Bank of America in the fourth quarter valued at $26,000. Cherry Tree Wealth Management LLC increased its stake in shares of Bank of America by 167.6% in the second quarter. Cherry Tree Wealth Management LLC now owns 479 shares of the financial services provider’s stock valued at $27,000 after buying an additional 300 shares in the last quarter. Principia Wealth Advisory LLC raised its holdings in shares of Bank of America by 69.9% in the second quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider’s stock valued at $30,000 after buying an additional 218 shares during the last quarter. Finally, Vermillion Wealth Management Inc. raised its holdings in shares of Bank of America by 199.1% in the first quarter. Vermillion Wealth Management Inc. now owns 658 shares of the financial services provider’s stock valued at $32,000 after buying an additional 438 shares during the last quarter. 70.71% of the stock is owned by institutional investors.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were given a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.3%. This is a boost from Bank of America’s previous quarterly dividend of $0.28. The ex-dividend date was Friday, September 4th. Bank of America’s dividend payout ratio (DPR) is presently 29.36%.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Bank of America’s earnings setup includes a favorable comparison with the prior quarter: it previously exceeded consensus estimates for both earnings and revenue, while revenue increased 19.6% year over year. Investors will be looking for evidence that lending and fee-based businesses remain resilient. Is Bank of America’s Stock a Buy Ahead of Its Q3 Earnings Report on Oct. 14?
• Neutral Sentiment: The options market is pricing in a relatively muted reaction to the earnings release, suggesting traders are not positioning for an unusually large move. The report and management’s outlook will determine whether the stock can recover. Bank of America Earnings Preview: Options Market Signals a Muted Reaction
• Neutral Sentiment: Bank of America’s research division is warning that market risks are increasing but continues to recommend select stocks. The commentary highlights a more cautious investment backdrop rather than a direct change to BAC’s fundamentals. Bank of America Warns of Growing Market Risks
• Negative Sentiment: Rising government borrowing costs and yields are raising concerns about slower dealmaking and lending growth, while potentially increasing banks’ funding costs. These pressures could weigh on BAC’s net interest income and investment-banking results. Q3 Earnings Season Begins: Global Week Ahead
• Negative Sentiment: A broader selloff across bank stocks has pushed many financial shares into correction territory, adding sector-wide pressure to BAC ahead of earnings. Investors remain focused on whether high rates are hurting loan demand, credit quality and market valuations. Why bank stocks shocked everyone by getting thrashed

About Bank of America

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.