Bank of America (NYSE:BAC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Bank of America’s shares have outperformed the industry, over the past six months. This price performance is backed by impressive earnings surprise history as the company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company’s fourth-quarter 2017 earnings benefited from higher interest income and investment banking fees as well as lower operating expenses. Rising interest rates, increase in loan and deposit balances, and efforts to manage expenses are expected to continue supporting profitability. The bank’s efforts to streamline and simplify operations as well as gains from the new tax act will aid its financial performance. However, fall in mortgage banking income due to lower volumes and a decline in refinancing activity along with uncertainty related to performance of capital markets remain major concerns.”
Several other equities analysts have also recently commented on BAC. Vetr raised shares of Bank of America from a “hold” rating to a “buy” rating and set a $26.59 price target for the company in a research report on Monday, October 16th. Royal Bank of Canada raised their price target on shares of Bank of America from $26.00 to $28.00 and gave the company an “outperform” rating in a research report on Monday, October 16th. BMO Capital Markets reissued a “market perform” rating and issued a $29.00 price target (up previously from $27.00) on shares of Bank of America in a research report on Monday, October 16th. Nomura raised their price target on shares of Bank of America from $28.00 to $30.00 and gave the company a “buy” rating in a research report on Monday, October 16th. Finally, UBS Group set a $27.00 price objective on shares of Bank of America and gave the company a “hold” rating in a report on Monday, October 16th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and sixteen have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $29.99.
Bank of America (NYSE:BAC) last issued its quarterly earnings results on Wednesday, January 17th. The financial services provider reported $0.47 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.03. Bank of America had a net margin of 18.03% and a return on equity of 8.54%. The company had revenue of $20.69 billion during the quarter, compared to analysts’ expectations of $21.61 billion. During the same quarter last year, the company posted $0.40 EPS. The firm’s revenue was up 3.5% compared to the same quarter last year. equities research analysts forecast that Bank of America will post 2.46 earnings per share for the current fiscal year.
Bank of America announced that its Board of Directors has approved a stock buyback program on Tuesday, December 5th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
A number of large investors have recently made changes to their positions in BAC. Janus Henderson Group PLC grew its position in Bank of America by 587.0% during the 2nd quarter. Janus Henderson Group PLC now owns 13,598,678 shares of the financial services provider’s stock worth $329,911,000 after purchasing an additional 11,619,173 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in Bank of America by 27.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 44,136,977 shares of the financial services provider’s stock worth $1,070,762,000 after purchasing an additional 9,612,342 shares during the last quarter. Vanguard Group Inc. grew its position in Bank of America by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 661,494,339 shares of the financial services provider’s stock worth $16,047,853,000 after purchasing an additional 9,117,007 shares during the last quarter. Parametric Portfolio Associates LLC grew its position in Bank of America by 52.4% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 24,012,218 shares of the financial services provider’s stock worth $582,536,000 after purchasing an additional 8,261,288 shares during the last quarter. Finally, Investec Asset Management LTD grew its position in Bank of America by 68.6% during the 2nd quarter. Investec Asset Management LTD now owns 17,772,325 shares of the financial services provider’s stock worth $431,157,000 after purchasing an additional 7,231,615 shares during the last quarter. Hedge funds and other institutional investors own 69.28% of the company’s stock.
Bank of America Company Profile
Bank of America Corporation is a bank holding company and a financial holding company. The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services. The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments: Consumer Banking, which comprises Deposits and Consumer Lending; Global Wealth & Investment Management, which consists of two primary businesses: Merrill Lynch Global Wealth Management and U.S.
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