Zacks Research Forecasts Lower Earnings for Bank of America

Bank of America Corporation (NYSE:BAC) – Equities research analysts at Zacks Research cut their FY2025 earnings per share (EPS) estimates for Bank of America in a report released on Monday, September 29th. Zacks Research analyst Team now forecasts that the financial services provider will earn $3.66 per share for the year, down from their prior forecast of $3.67. The consensus estimate for Bank of America’s current full-year earnings is $3.70 per share. Zacks Research also issued estimates for Bank of America’s FY2027 earnings at $4.99 EPS.

Bank of America (NYSE:BAC) last released its earnings results on Wednesday, July 16th. The financial services provider reported $0.89 EPS for the quarter, beating analysts’ consensus estimates of $0.86 by $0.03. The business had revenue of ($22,273.00) million for the quarter, compared to analysts’ expectations of $26.79 billion. Bank of America had a return on equity of 10.25% and a net margin of 14.81%.The firm’s revenue was up 4.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.83 earnings per share.

Several other research firms have also issued reports on BAC. Oppenheimer cut their price target on shares of Bank of America from $57.00 to $56.00 and set an “outperform” rating for the company in a research report on Tuesday, September 23rd. Robert W. Baird restated a “neutral” rating and set a $52.00 price target on shares of Bank of America in a research report on Friday, June 27th. Hsbc Global Res lowered shares of Bank of America from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 8th. Royal Bank Of Canada increased their target price on shares of Bank of America from $53.00 to $56.00 and gave the stock an “outperform” rating in a report on Wednesday. Finally, Phillip Securities lowered shares of Bank of America from a “strong-buy” rating to a “moderate buy” rating in a report on Friday, July 25th. Seventeen investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $52.78.

Bank of America Stock Performance

NYSE BAC opened at $50.67 on Wednesday. The company has a 50-day simple moving average of $49.29 and a two-hundred day simple moving average of $45.13. The company has a quick ratio of 0.79, a current ratio of 0.80 and a debt-to-equity ratio of 1.14. Bank of America has a 12-month low of $33.06 and a 12-month high of $52.88. The firm has a market cap of $375.29 billion, a price-to-earnings ratio of 14.81, a PEG ratio of 2.00 and a beta of 1.33.

Institutional Investors Weigh In On Bank of America

A number of hedge funds and other institutional investors have recently bought and sold shares of BAC. Wealth Advisory Solutions LLC raised its holdings in shares of Bank of America by 4.4% in the second quarter. Wealth Advisory Solutions LLC now owns 5,126 shares of the financial services provider’s stock worth $243,000 after buying an additional 214 shares during the last quarter. Ballast Advisors LLC raised its holdings in shares of Bank of America by 4.1% in the second quarter. Ballast Advisors LLC now owns 5,489 shares of the financial services provider’s stock worth $260,000 after buying an additional 218 shares during the last quarter. AllSquare Wealth Management LLC raised its holdings in shares of Bank of America by 1.0% in the second quarter. AllSquare Wealth Management LLC now owns 23,072 shares of the financial services provider’s stock worth $1,092,000 after buying an additional 220 shares during the last quarter. Cyndeo Wealth Partners LLC raised its holdings in shares of Bank of America by 0.8% in the second quarter. Cyndeo Wealth Partners LLC now owns 28,394 shares of the financial services provider’s stock worth $1,344,000 after buying an additional 221 shares during the last quarter. Finally, Wealth Preservation Advisors LLC raised its holdings in shares of Bank of America by 48.7% in the second quarter. Wealth Preservation Advisors LLC now owns 681 shares of the financial services provider’s stock worth $32,000 after buying an additional 223 shares during the last quarter. Hedge funds and other institutional investors own 70.71% of the company’s stock.

Insider Transactions at Bank of America

In other Bank of America news, insider James P. Demare sold 148,391 shares of the firm’s stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $45.57, for a total value of $6,762,177.87. Following the completion of the sale, the insider owned 223,407 shares of the company’s stock, valued at $10,180,656.99. This trade represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is currently owned by insiders.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 26th. Investors of record on Friday, September 5th were issued a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a yield of 2.2%. The ex-dividend date was Friday, September 5th. This is a positive change from Bank of America’s previous quarterly dividend of $0.26. Bank of America’s payout ratio is currently 32.75%.

Bank of America declared that its board has initiated a share buyback program on Wednesday, July 23rd that authorizes the company to repurchase $40.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.1% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

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.