Shares of Bank of America Co. (NYSE:BAC) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $41.91, but opened at $43.23. Bank of America shares last traded at $42.81, with a volume of 11,394,123 shares changing hands.
The financial services provider reported $0.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.78 by $0.03. Bank of America had a net margin of 13.28% and a return on equity of 10.56%. The firm had revenue of $25.30 billion during the quarter, compared to analyst estimates of $25.25 billion. During the same quarter in the prior year, the firm posted $0.90 earnings per share. Bank of America’s quarterly revenue was up .4% on a year-over-year basis.
Bank of America Dividend Announcement
The business also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Shareholders of record on Friday, December 6th will be paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 2.43%. Bank of America’s dividend payout ratio (DPR) is presently 35.99%.
Analyst Upgrades and Downgrades
BAC has been the subject of several research analyst reports. StockNews.com raised shares of Bank of America from a “sell” rating to a “hold” rating in a research note on Wednesday. Piper Sandler Companies raised shares of Bank of America from an “underweight” rating to a “neutral” rating and increased their target price for the stock from $37.00 to $42.00 in a research note on Tuesday, July 9th. Seaport Res Ptn raised shares of Bank of America from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 2nd. Piper Sandler raised shares of Bank of America from an “underweight” rating to a “neutral” rating and raised their price objective for the company from $37.00 to $42.00 in a research note on Tuesday, July 9th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Bank of America from $48.00 to $50.00 and gave the company an “outperform” rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, Bank of America currently has a consensus rating of “Moderate Buy” and a consensus price target of $42.62.
Check Out Our Latest Report on Bank of America
Insiders Place Their Bets
In other news, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of the stock in a transaction that occurred on Wednesday, October 9th. The stock was sold at an average price of $40.14, for a total transaction of $160,649,311.50. Following the completion of the transaction, the insider now directly owns 776,614,511 shares in the company, valued at approximately $31,173,306,471.54. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, insider Bernard A. Mensah sold 92,000 shares of Bank of America stock in a transaction that occurred on Tuesday, August 27th. The stock was sold at an average price of $39.80, for a total transaction of $3,661,600.00. Following the sale, the insider now owns 96,082 shares of the company’s stock, valued at approximately $3,824,063.60. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Berkshire Hathaway Inc sold 4,002,225 shares of the business’s stock in a transaction on Wednesday, October 9th. The shares were sold at an average price of $40.14, for a total value of $160,649,311.50. Following the completion of the sale, the insider now directly owns 776,614,511 shares in the company, valued at approximately $31,173,306,471.54. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 148,230,389 shares of company stock worth $6,023,064,684 in the last 90 days. 0.29% of the stock is owned by company insiders.
Institutional Investors Weigh In On Bank of America
Several institutional investors have recently modified their holdings of the business. Fairway Wealth LLC acquired a new position in Bank of America during the second quarter valued at approximately $27,000. Delos Wealth Advisors LLC boosted its stake in shares of Bank of America by 402.2% during the first quarter. Delos Wealth Advisors LLC now owns 683 shares of the financial services provider’s stock valued at $26,000 after purchasing an additional 547 shares in the last quarter. POM Investment Strategies LLC grew its holdings in Bank of America by 839.0% during the 2nd quarter. POM Investment Strategies LLC now owns 723 shares of the financial services provider’s stock worth $29,000 after acquiring an additional 646 shares during the last quarter. Bbjs Financial Advisors LLC acquired a new stake in Bank of America in the second quarter valued at $30,000. Finally, Northwest Investment Counselors LLC bought a new position in shares of Bank of America during the first quarter worth about $33,000. Institutional investors and hedge funds own 70.71% of the company’s stock.
Bank of America Stock Up 1.6 %
The stock has a market cap of $334.71 billion, a price-to-earnings ratio of 14.81, a P/E/G ratio of 1.39 and a beta of 1.33. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.09. The stock’s 50-day moving average price is $39.72 and its 200-day moving average price is $39.35.
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.
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