Bank of America Corp. (BAC) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “Bank of America is expected to report lower year over year earnings in the third-quarter 2016. Given the current market scenario we anticipate no further increase in interest rates in the near-term, which is likely to put margins under pressure. Also, the stress in the energy sector (though reduced now) is expected to hurt its asset quality in the near term. Further, lower trading volume is expected to hamper fee income growth and stringent regulations adds to the woes. However, effective cost containment measures and improving loan and deposit balances are impressive. Also, steady capital deployment activities depict balance sheet strength.”
Other analysts also recently issued research reports about the stock. Deutsche Bank AG reaffirmed a buy rating on shares of Bank of America Corp. in a research report on Wednesday, June 15th. Vetr downgraded shares of Bank of America Corp. from a strong-buy rating to a buy rating and set a $14.87 price objective for the company. in a research report on Wednesday, June 15th. Sanford C. Bernstein reaffirmed a buy rating on shares of Bank of America Corp. in a research report on Monday, June 20th. Buckingham Research reissued a buy rating on shares of Bank of America Corp. in a research report on Tuesday, June 21st. Finally, Citigroup Inc. reissued a buy rating on shares of Bank of America Corp. in a research report on Wednesday, June 29th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and twenty-two have given a buy rating to the company. Bank of America Corp. presently has a consensus rating of Buy and an average price target of $24.82.
Shares of Bank of America Corp. (NYSE:BAC) traded up 0.31% during trading on Wednesday, reaching $16.16. 25,791,353 shares of the company’s stock were exchanged. The stock has a market capitalization of $169.95 billion, a PE ratio of 13.55 and a beta of 1.50. Bank of America Corp. has a 52 week low of $10.99 and a 52 week high of $18.09. The company’s 50-day moving average is $15.61 and its 200 day moving average is $14.45.
Bank of America Corp. (NYSE:BAC) last issued its quarterly earnings data on Wednesday, October 5th. The financial services provider reported $0.28 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.21 by $0.07. Bank of America Corp. had a net margin of 16.31% and a return on equity of 6.23%. On average, analysts forecast that Bank of America Corp. will post $1.26 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 23rd. Stockholders of record on Friday, September 2nd were issued a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a dividend yield of 1.86%. The ex-dividend date was Wednesday, August 31st. This is a boost from Bank of America Corp.’s previous quarterly dividend of $0.05. Bank of America Corp.’s dividend payout ratio is presently 24.59%.
In other news, Director Thomas D. Woods purchased 25,000 shares of the business’s stock in a transaction dated Tuesday, August 2nd. The shares were acquired at an average price of $14.13 per share, with a total value of $353,250.00. Following the completion of the purchase, the director now directly owns 32,459 shares of the company’s stock, valued at approximately $458,645.67. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.18% of the company’s stock.
Several institutional investors have recently modified their holdings of the stock. Mn Services Vermogensbeheer B.V. purchased a new position in shares of Bank of America Corp. during the first quarter valued at about $3,096,000. Aspen Investment Management Inc raised its position in shares of Bank of America Corp. by 3.3% in the first quarter. Aspen Investment Management Inc now owns 27,093 shares of the financial services provider’s stock valued at $367,000 after buying an additional 875 shares during the period. Virginia Retirement System purchased a new position in shares of Bank of America Corp. during the first quarter valued at about $34,245,000. Tiemann Investment Advisors LLC purchased a new position in shares of Bank of America Corp. during the first quarter valued at about $264,000. Finally, Compton Capital Management Inc. RI raised its position in shares of Bank of America Corp. by 2.8% in the first quarter. Compton Capital Management Inc. RI now owns 94,623 shares of the financial services provider’s stock valued at $1,279,000 after buying an additional 2,600 shares during the period. 60.68% of the stock is currently owned by institutional investors and hedge funds.
About Bank of America Corp.
Bank of America Corporation is a bank holding and financial holding company. The Company is a financial institution, serving individual consumers, small- and middle-market businesses, institutional investors, corporations and governments with various banking, investing, asset management and other financial and risk management products and services.
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