Zacks Research Forecasts Lower Earnings for Bank of America

Bank of America Corporation (NYSE:BAC) – Analysts at Zacks Research cut their Q2 2026 earnings estimates for Bank of America in a research report issued to clients and investors on Tuesday, August 12th. Zacks Research analyst R. Department now expects that the financial services provider will earn $1.01 per share for the quarter, down from their previous estimate of $1.02. 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 Q1 2027 earnings at $1.03 EPS and Q2 2027 earnings at $1.20 EPS.

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

Other analysts have also issued research reports about the stock. Royal Bank Of Canada set a $53.00 target price on shares of Bank of America and gave the stock an “outperform” rating in a research note on Monday, June 30th. Truist Financial upped their target price on shares of Bank of America from $51.00 to $53.00 and gave the stock a “buy” rating in a research note on Wednesday, July 9th. The Goldman Sachs Group upped their target price on shares of Bank of America from $46.00 to $52.00 and gave the stock a “buy” rating in a research note on Tuesday, June 10th. Oppenheimer increased their price target on shares of Bank of America from $55.00 to $57.00 and gave the company an “outperform” rating in a research report on Wednesday, July 30th. Finally, 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. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and seventeen have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $50.13.

Bank of America Stock Performance

NYSE BAC opened at $46.91 on Thursday. Bank of America has a 1 year low of $33.06 and a 1 year high of $49.31. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.80 and a quick ratio of 0.79. The firm has a market cap of $347.46 billion, a price-to-earnings ratio of 13.72, a PEG ratio of 1.85 and a beta of 1.31. The company has a fifty day moving average price of $46.69 and a 200-day moving average price of $43.79.

Institutional Investors Weigh In On Bank of America

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC grew its position in Bank of America by 0.3% during the second quarter. Geode Capital Management LLC now owns 148,176,755 shares of the financial services provider’s stock valued at $6,982,863,000 after acquiring an additional 403,652 shares during the last quarter. Price T Rowe Associates Inc. MD grew its position in Bank of America by 10.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 122,437,422 shares of the financial services provider’s stock valued at $5,381,126,000 after acquiring an additional 11,691,451 shares during the last quarter. Norges Bank bought a new position in Bank of America during the second quarter valued at approximately $5,091,641,000. Capital World Investors grew its position in Bank of America by 23.9% during the fourth quarter. Capital World Investors now owns 88,210,527 shares of the financial services provider’s stock valued at $3,876,853,000 after acquiring an additional 17,031,143 shares during the last quarter. Finally, Northern Trust Corp grew its holdings in shares of Bank of America by 17.2% in the fourth quarter. Northern Trust Corp now owns 67,935,940 shares of the financial services provider’s stock worth $2,985,785,000 after purchasing an additional 9,980,859 shares during the last quarter. 70.71% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, insider James P. Demare sold 148,391 shares of the 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 sale, the insider directly owned 223,407 shares of the company’s stock, valued at approximately $10,180,656.99. This represents a 39.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.30% of the company’s stock.

Bank of America declared that its Board of Directors has initiated a stock repurchase program on Wednesday, July 23rd that permits the company to repurchase $40.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to reacquire up to 11.1% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 5th will be issued a $0.28 dividend. The ex-dividend date of this dividend is Friday, September 5th. This is a positive change from Bank of America’s previous quarterly dividend of $0.26. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.4%. Bank of America’s payout ratio is currently 32.75%.

About Bank of America

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.