Bank of America (NYSE:BAC) Shares Down 2.4% – Should You Sell?

Shares of Bank of America Corporation (NYSE:BAC) dropped 2.4% on Wednesday . The company traded as low as $60.91 and last traded at $61.0930. 37,598,267 shares were traded during trading, a decline of 3% from the average session volume of 38,635,629 shares. The stock had previously closed at $62.62.

Key Bank of America News

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: JPMorgan raised its price target on BAC to $68 from $62.50 and assigned an Overweight rating, implying roughly 9% upside from the referenced share price. The upgrade supports investor confidence in Bank of America’s earnings outlook and valuation. JPMorgan raises Bank of America price target
• Positive Sentiment: An analyst increased Bank of America’s fiscal 2026 EPS estimate, signaling expectations for stronger profitability and potentially supporting further share appreciation. FY2026 EPS estimate for Bank of America increased
• Positive Sentiment: Bank of America plans to acquire U.K.-based cybersecurity consultancy MDSec Consulting, its first acquisition in five years. The deal is intended to strengthen protection against AI-driven cyberattacks and ransomware while adding specialized information-security capabilities. Completion is expected in the fourth quarter of 2026, subject to regulatory approval. Bank of America to acquire MDSec Consulting
• Positive Sentiment: Merrill Lynch recruited a 14-person advisory team managing approximately $13 billion from Morgan Stanley’s Graystone Consulting. The move could expand Bank of America’s wealth-management assets and fee revenue. Merrill Lynch recruits $13 billion team
• Neutral Sentiment: Bank of America’s valuation remains viewed as reasonable despite its more than doubling over three years, while AI adoption across operations and client services could improve efficiency and profitability. However, investors may question how much of this potential is already reflected in the stock. Bank of America valuation and AI expansion
• Negative Sentiment: A hawkish Federal Reserve and higher-for-longer interest rates could create volatility for bank stocks by slowing loan demand and increasing credit-risk concerns, even though elevated rates may support Bank of America’s net interest income.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on BAC. UBS Group increased their price objective on Bank of America from $63.00 to $68.00 and gave the stock a “buy” rating in a research note on Tuesday, July 7th. Argus set a $70.00 target price on Bank of America in a research note on Wednesday, July 15th. Royal Bank Of Canada upped their target price on Bank of America from $59.00 to $65.00 and gave the company an “outperform” rating in a report on Wednesday, July 15th. Jefferies Financial Group restated a “buy” rating and set a $75.00 price target on shares of Bank of America in a report on Tuesday, July 14th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of Bank of America from $67.00 to $70.00 and gave the company an “outperform” rating in a research report on Wednesday, July 15th. Twenty-one equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $64.00.

Bank of America Stock Up 0.5%

The company has a debt-to-equity ratio of 1.23, a current ratio of 0.83 and a quick ratio of 0.82. The business has a 50 day simple moving average of $57.29 and a 200 day simple moving average of $53.49. The stock has a market cap of $440.17 billion, a PE ratio of 14.23, a P/E/G ratio of 0.98 and a beta of 1.17.

Bank of America (NYSE:BAC) last posted its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping analysts’ consensus estimates of $1.13 by $0.08. The company had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The business’s quarterly revenue was up 19.6% on a year-over-year basis. During the same period last year, the business earned $0.89 EPS. On average, equities research analysts forecast that Bank of America Corporation will post 4.67 EPS for the current fiscal year.

Bank of America Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.1%. This is a boost from Bank of America’s previous quarterly dividend of $0.28. The ex-dividend date is Friday, September 4th. Bank of America’s dividend payout ratio is presently 25.69%.

Insider Buying and Selling

In other news, insider Geoffrey S. Greener sold 126,756 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $53.01, for a total transaction of $6,719,335.56. Following the transaction, the insider owned 1,373,397 shares in the company, valued at $72,803,774.97. This represents a 8.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.27% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Bank of America

Institutional investors and hedge funds have recently modified their holdings of the business. Midland Wealth Advisors LLC grew its stake in Bank of America by 4.6% in the 2nd quarter. Midland Wealth Advisors LLC now owns 12,232 shares of the financial services provider’s stock valued at $697,000 after buying an additional 533 shares during the last quarter. Sunpointe LLC increased its stake in shares of Bank of America by 101.2% in the second quarter. Sunpointe LLC now owns 30,312 shares of the financial services provider’s stock worth $1,727,000 after purchasing an additional 15,244 shares during the period. Udine Wealth Management Inc. lifted its position in shares of Bank of America by 1.6% during the 2nd quarter. Udine Wealth Management Inc. now owns 232,035 shares of the financial services provider’s stock worth $13,221,000 after purchasing an additional 3,587 shares during the last quarter. Quaker Wealth Management LLC lifted its position in shares of Bank of America by 100.0% during the 2nd quarter. Quaker Wealth Management LLC now owns 1,052 shares of the financial services provider’s stock worth $60,000 after purchasing an additional 526 shares during the last quarter. Finally, Bogart Wealth LLC boosted its stake in Bank of America by 15.2% during the 2nd quarter. Bogart Wealth LLC now owns 3,228 shares of the financial services provider’s stock valued at $184,000 after purchasing an additional 425 shares during the period. Institutional investors and hedge funds own 70.71% of the company’s stock.

Bank of America Company Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.