Bank of America (NYSE:BAC) Stock Price Down 2.5% – Here’s Why

Bank of America Corporation (NYSE:BAC) shares were down 2.5% during trading on Thursday . The company traded as low as $51.79 and last traded at $52.5050. Approximately 55,009,727 shares were traded during trading, an increase of 35% from the average daily volume of 40,773,801 shares. The stock had previously closed at $53.85.

Bank of America News Roundup

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

• Positive Sentiment: BofA Community Development Banking originated $7.4 billion in debt and equity financing in 2025, supporting 11,000+ affordable housing units and continuing a multi‑year program that improves loan diversification and ESG credentials. BofA Community Development Banking Delivers $7.4 Billion
• Positive Sentiment: Industry commentary at the BofA Securities conference emphasized regulatory risks around a proposed credit-card rate cap — speakers from Citi argued caps would reduce access to credit, an outcome investors view as negative for consumers but potentially supportive of bank margins if caps are avoided. Citi Executive Warns Rate Cap Would Kill Credit
• Neutral Sentiment: BofA research flagged a material oil-market surplus that could pressure energy-linked assets and feed into macro inflation/earnings expectations — relevant for portfolio positioning but indirect for BAC’s core banking earnings. Oil Market Faces 2 Million Barrel-per-Day Surplus
• Neutral Sentiment: Bank of America promoted internal talent and advisor diversity narratives (women advisors, Italian leadership updates) — positive PR that supports long‑term client retention but unlikely to move near‑term stock substantially. Bank Of America Highlights Women Advisors
• Negative Sentiment: Internal BofA data and commentary raised concerns that the middle class is now feeling strain from the K‑shaped economy, amplifying fears about consumer spending, credit quality, and future loan losses. Bank of America’s internal data show the middle class is now feeling the pain
• Negative Sentiment: Recent coverage highlights shifts in analyst narratives and valuation questions—pieces asking whether it’s “too late” to buy BAC and notes on analyst view changes likely pressured sentiment and added to selling. Looking At The Narrative For Bank Of America
• Negative Sentiment: CEO comments and warnings about concentrated tech-stock risks (Magnificent Seven) contributed to a risk‑off tone that can weigh on bank stock multiples if investors rotate out of cyclical/financial exposure. Bank of America CEO drops surprising view on the economy

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Truist Financial lowered their target price on shares of Bank of America from $62.00 to $60.00 and set a “buy” rating on the stock in a research note on Thursday, January 15th. Dbs Bank upgraded Bank of America to a “moderate buy” rating in a research report on Wednesday, October 22nd. Morgan Stanley cut their price target on shares of Bank of America from $68.00 to $64.00 and set an “overweight” rating for the company in a report on Thursday, January 15th. Phillip Securities raised their target price on shares of Bank of America from $50.00 to $56.00 in a report on Tuesday, October 21st. Finally, Evercore set a $59.00 price objective on Bank of America in a research note on Thursday, January 15th. Twenty-two analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Bank of America currently has an average rating of “Moderate Buy” and a consensus target price of $60.30.

Bank of America Stock Down 2.5%

The business has a fifty day moving average price of $54.49 and a two-hundred day moving average price of $51.98. The firm has a market cap of $383.42 billion, a PE ratio of 13.71, a P/E/G ratio of 1.35 and a beta of 1.29. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.80 and a quick ratio of 0.80.

Bank of America (NYSE:BAC) last released its earnings results on Wednesday, January 14th. The financial services provider reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.02. The company had revenue of $4.53 billion for the quarter, compared to analysts’ expectations of $27.73 billion. Bank of America had a return on equity of 11.07% and a net margin of 16.23%.The business’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.82 EPS. On average, analysts anticipate that Bank of America Corporation will post 3.7 EPS for the current fiscal year.

Bank of America Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 6th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 2.1%. Bank of America’s dividend payout ratio is 29.24%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. DecisionMap Wealth Management LLC increased its stake in shares of Bank of America by 4.7% during the 4th quarter. DecisionMap Wealth Management LLC now owns 4,061 shares of the financial services provider’s stock worth $223,000 after purchasing an additional 182 shares during the last quarter. Money Concepts Capital Corp boosted its stake in shares of Bank of America by 3.8% during the 4th quarter. Money Concepts Capital Corp now owns 4,964 shares of the financial services provider’s stock worth $273,000 after acquiring an additional 182 shares in the last quarter. Holistic Financial Partners raised its stake in shares of Bank of America by 2.4% in the 4th quarter. Holistic Financial Partners now owns 7,896 shares of the financial services provider’s stock valued at $434,000 after acquiring an additional 183 shares in the last quarter. Operose Advisors LLC lifted its holdings in Bank of America by 0.9% in the 4th quarter. Operose Advisors LLC now owns 20,409 shares of the financial services provider’s stock worth $1,123,000 after purchasing an additional 185 shares during the last quarter. Finally, Asahi Life Asset Management CO. LTD. lifted its holdings in Bank of America by 1.0% in the 4th quarter. Asahi Life Asset Management CO. LTD. now owns 19,847 shares of the financial services provider’s stock worth $1,092,000 after purchasing an additional 187 shares during the last quarter. 70.71% of the stock is owned by institutional investors and hedge funds.

About Bank of America

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.