Bank of America Corporation (NYSE:BAC) experienced a notable increase in its share price, rising by 1.1% on Friday. The stock reached a peak of $51.78 before settling at $51.54. During the trading session, over 43.6 million shares changed hands, marking a 9% increase from the average volume of 40.2 million shares. The closing price on the previous day was $51.00.
Analysts’ Upbeat Outlook
Recent reports from several brokerages highlight an optimistic outlook for Bank of America. Notably, Phillip Securities raised its price target from $50.00 to $56.00 on October 21, 2023. Meanwhile, Evercore ISI increased their target from $55.00 to $57.00 and assigned an “outperform” rating in a research note dated October 16, 2023.
In a similar vein, TD Cowen lifted their target from $61.00 to $64.00, giving the stock a “buy” rating on November 6, 2023. JPMorgan Chase & Co. also adjusted its price target from $55.00 to $58.00, while maintaining an “overweight” rating as of October 31, 2023. Additionally, HSBC raised its price objective from $51.00 to $53.00, assigning a “hold” rating in a report from October 2, 2023.
Currently, twenty-three analysts classify the stock as a Buy, with five issuing Hold ratings. According to MarketBeat, the average rating for Bank of America stands at “Moderate Buy,” with an average price target of $57.77.
Quarterly Earnings and Dividend Announcement
Bank of America released its latest earnings results on October 15, 2023, reporting earnings per share (EPS) of $1.06 for the quarter. This figure exceeded analysts’ expectations, which had anticipated an EPS of $0.93, resulting in a positive variance of $0.13. The company also reported a return on equity of 10.76% and a net margin of 15.70%. Revenue for the quarter was $5.35 billion, significantly higher than the estimated $27.05 billion. In comparison to the previous year, the revenue increased by 10.8%, with the company having recorded an EPS of $0.81 in the same quarter last year. Analysts project that Bank of America will achieve an EPS of $3.70 for the current fiscal year.
In conjunction with these results, Bank of America announced a quarterly dividend of $0.28 per share, scheduled for payment on December 26, 2023. Stockholders of record on December 5, 2023 will receive this dividend, which equates to an annualized dividend of $1.12 and a dividend yield of 2.2%. The ex-dividend date for this payment is also set for December 5, 2023. The current dividend payout ratio stands at 30.52%.
Institutional Investor Activity
Several institutional investors have recently adjusted their holdings in Bank of America. Brighton Jones LLC increased its stake by 30% during the fourth quarter, now owning 108,872 shares valued at approximately $4.79 million. Northern Financial Advisors Inc. grew its holdings by 1.8% in the first quarter, now possessing 14,383 shares worth $600,000.
Additionally, PFG Advisors raised its position in Bank of America by 3.8%, owning 24,413 shares valued at around $1.02 million. Venturi Wealth Management LLC also increased its stake by 4.9%, now holding 27,942 shares worth $1.17 million. Financial & Tax Architects LLC initiated a new stake in Bank of America, valued at $343,000. Currently, institutional investors hold approximately 70.71% of the bank’s stock.
Bank of America Corporation provides a broad range of banking and financial services to individuals, small and medium-sized enterprises, institutional investors, large corporations, and governments globally. Its operations are divided into four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets.
