Bank of America (NYSE:BAC) Shares Down 1.7% – Here’s What Happened

Shares of Bank of America Corporation (NYSE:BAC) were down 1.7% during mid-day trading on Thursday . The stock traded as low as $61.10 and last traded at $61.1680. Approximately 44,266,337 shares changed hands during mid-day trading, an increase of 19% from the average session volume of 37,172,609 shares. The stock had previously closed at $62.23.

More Bank of America News

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

• Positive Sentiment: Bank of America analysts continue to express confidence in artificial-intelligence beneficiaries, particularly Nvidia, reinforcing the bank’s research franchise and potential investment-banking and trading opportunities tied to AI. Bank of America doubles down on Nvidia stock
• Positive Sentiment: The bank’s AI initiatives and branch expansion are reportedly improving operating efficiency. This could support longer-term profitability, although investors remain focused on whether those gains can offset rising expenses. Should You Buy BAC Stock as AI-Led Branch Expansion Boosts Efficiency?
• Neutral Sentiment: Bank of America issued several senior unsecured notes with maturities extending from 2029 to 2046. The financing supports liquidity and capital needs, but also highlights the bank’s ongoing reliance on wholesale funding and interest-rate management. What Bank of America’s New Debt Issuance and AI Credit Research Push Means For Shareholders
• Negative Sentiment: An SEC investigation reportedly sent subpoenas to Bank of America and other major banks regarding margin lending to hedge fund Situational Awareness, which suffered a 67% drawdown during an AI-stock sell-off. The inquiry raises concerns about leverage, collateral exposure, potential losses and regulatory costs across Wall Street. SEC Probe Puts Wall Street Leverage Risk Back in Focus
• Negative Sentiment: Bank of America’s reported plan to spend at least $250 million annually on weight-loss medications for employees could add to operating expenses, although management views the benefit as worthwhile for employee retention and health. Bank of America is spending $250 million a year on weight loss drugs for employees

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Evercore set a $63.00 price target on shares of Bank of America and gave the company an “outperform” rating in a research note on Monday, July 6th. Royal Bank Of Canada increased their price target on shares of Bank of America from $59.00 to $65.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 15th. JPMorgan Chase & Co. boosted their target price on Bank of America from $62.50 to $68.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 29th. Barclays increased their price target on Bank of America from $71.00 to $72.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Finally, UBS Group upped their price target on shares of Bank of America from $68.00 to $70.00 and gave the company a “buy” rating in a research report on Monday, August 3rd. Twenty-one research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $64.08.

Bank of America Stock Down 1.7%

The firm’s 50-day simple moving average is $60.96 and its 200 day simple moving average is $54.83. The company has a debt-to-equity ratio of 1.23, a quick ratio of 0.82 and a current ratio of 0.83. The company has a market cap of $427.73 billion, a P/E ratio of 14.03, a PEG ratio of 1.00 and a beta of 1.17.

Bank of America (NYSE:BAC) last posted its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.08. The company had revenue of $31.56 billion during the quarter, compared to analyst estimates of $30.78 billion. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The company’s revenue for the quarter was up 19.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.89 EPS. On average, research analysts forecast that Bank of America Corporation will post 4.68 earnings per share for the current fiscal year.

Bank of America Increases Dividend

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

Institutional Investors Weigh In On Bank of America

Several hedge funds have recently added to or reduced their stakes in BAC. Turim 21 Investimentos Ltda. bought a new stake in Bank of America during the second quarter worth $25,000. Abound Financial LLC bought a new stake in shares of Bank of America in the 4th quarter valued at $26,000. Wiser Advisor Group LLC acquired a new position in shares of Bank of America in the 3rd quarter valued at about $27,000. Principia Wealth Advisory LLC boosted its holdings in shares of Bank of America by 69.9% during the 2nd quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider’s stock worth $30,000 after buying an additional 218 shares in the last quarter. Finally, CrossGen Wealth LLC bought a new stake in Bank of America in the fourth quarter valued at $30,000. Institutional investors and hedge funds own 70.71% of the company’s stock.

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.