Bank of America (NYSE:BAC) Trading Up 4.2% Following Strong Earnings

Shares of Bank of America Co. (NYSE:BAC) traded up 4.2% during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $38.75 and last traded at $38.21. 36,852,765 shares traded hands during trading, a decline of 6% from the average session volume of 39,231,248 shares. The stock had previously closed at $36.67.

The financial services provider reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.10. The business had revenue of $27.37 billion during the quarter, compared to analyst estimates of $26.83 billion. Bank of America had a return on equity of 10.29% and a net margin of 14.10%.

Bank of America Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 28th. Stockholders of record on Friday, March 7th were issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.73%. The ex-dividend date of this dividend was Friday, March 7th. Bank of America’s dividend payout ratio is 32.30%.

Analysts Set New Price Targets

BAC has been the topic of several analyst reports. Truist Financial lowered their price target on Bank of America from $53.00 to $50.00 and set a “buy” rating on the stock in a report on Friday, April 4th. Robert W. Baird upgraded shares of Bank of America from a “neutral” rating to an “outperform” rating and lifted their target price for the stock from $45.00 to $50.00 in a report on Friday, March 7th. Citigroup decreased their price target on shares of Bank of America from $54.00 to $50.00 and set a “buy” rating for the company in a report on Monday, March 24th. Evercore ISI cut their price objective on Bank of America from $51.00 to $48.00 and set an “outperform” rating for the company in a research report on Tuesday, April 1st. Finally, Piper Sandler lowered their target price on Bank of America from $50.00 to $49.00 and set a “neutral” rating on the stock in a report on Friday, January 17th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, fifteen have issued a buy rating and three have given a strong buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $48.31.

Institutional Trading of Bank of America

Several large investors have recently added to or reduced their stakes in the company. Collier Financial bought a new stake in Bank of America during the 4th quarter worth about $25,000. Life Planning Partners Inc grew its stake in shares of Bank of America by 3,883.2% during the fourth quarter. Life Planning Partners Inc now owns 559,995 shares of the financial services provider’s stock valued at $25,000 after purchasing an additional 545,936 shares during the last quarter. Graney & King LLC acquired a new stake in shares of Bank of America in the fourth quarter valued at approximately $25,000. Fairway Wealth LLC bought a new position in Bank of America in the 4th quarter worth approximately $29,000. Finally, Vega Investment Solutions acquired a new position in Bank of America during the 4th quarter worth $30,000. 70.71% of the stock is owned by institutional investors.

Bank of America Price Performance

The company has a market capitalization of $289.16 billion, a price-to-earnings ratio of 11.81, a PEG ratio of 1.21 and a beta of 1.24. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.04. The company has a 50 day moving average price of $41.85 and a 200 day moving average price of $43.66.

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.