Bank of America (BAC) Stock Rating Lowered by Zacks Investment Research
Zacks Investment Research cut shares of Bank of America (NYSE:BAC) from a buy rating to a hold rating in a report published on Tuesday morning.
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.”
BAC has been the topic of several other research reports. Barclays increased their price target on shares of Bank of America from $28.00 to $35.00 and gave the stock an equal weight rating in a research report on Tuesday, January 2nd. Royal Bank of Canada reaffirmed a buy rating and set a $30.00 price target on shares of Bank of America in a research report on Friday, December 8th. Instinet reduced their price target on shares of Bank of America from $37.00 to $30.00 in a research report on Wednesday, January 3rd. BMO Capital Markets reaffirmed a hold rating and set a $31.00 price target on shares of Bank of America in a research report on Monday, January 8th. Finally, Credit Suisse Group raised shares of Bank of America to an outperform rating and increased their price target for the stock from $32.00 to $35.00 in a research report on Thursday, January 4th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and sixteen have given a buy rating to the stock. Bank of America currently has an average rating of Buy and a consensus target price 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, topping the 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 business had revenue of $20.69 billion for the quarter, compared to analysts’ expectations of $21.61 billion. During the same quarter last year, the company posted $0.40 earnings per share. The company’s quarterly revenue was up 3.5% compared to the same quarter last year. research analysts forecast that Bank of America will post 2.46 EPS for the current fiscal year.
Bank of America declared that its Board of Directors has initiated a share buyback program on Tuesday, December 5th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Friday, March 30th. Shareholders of record on Friday, March 2nd will be issued a $0.12 dividend. The ex-dividend date of this dividend is Thursday, March 1st. This represents a $0.48 dividend on an annualized basis and a yield of 1.54%. Bank of America’s dividend payout ratio is currently 30.97%.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Lbmc Investment Advisors LLC raised its holdings in shares of Bank of America by 0.3% during the second quarter. Lbmc Investment Advisors LLC now owns 16,851 shares of the financial services provider’s stock valued at $409,000 after buying an additional 51 shares during the last quarter. TCI Wealth Advisors Inc. raised its holdings in shares of Bank of America by 0.4% during the second quarter. TCI Wealth Advisors Inc. now owns 14,402 shares of the financial services provider’s stock valued at $349,000 after buying an additional 54 shares during the last quarter. Altavista Wealth Management Inc. raised its holdings in shares of Bank of America by 0.7% during the second quarter. Altavista Wealth Management Inc. now owns 10,199 shares of the financial services provider’s stock valued at $247,000 after buying an additional 68 shares during the last quarter. Alpha Omega Wealth Management LLC raised its holdings in shares of Bank of America by 0.3% during the second quarter. Alpha Omega Wealth Management LLC now owns 25,288 shares of the financial services provider’s stock valued at $613,000 after buying an additional 76 shares during the last quarter. Finally, Gerber Kawasaki Wealth & Investment Management raised its holdings in shares of Bank of America by 0.9% during the second quarter. Gerber Kawasaki Wealth & Investment Management now owns 11,190 shares of the financial services provider’s stock valued at $278,000 after buying an additional 98 shares during the last quarter. 69.28% of the stock is currently owned by hedge funds and other institutional investors.
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About Bank of America
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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