Bank of America (NYSE:BAC) Trading 1.9% Higher on Earnings Beat

Bank of America Corporation (NYSE:BAC) rose 1.9% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $61.21 and last traded at $60.6380. Approximately 49,187,596 shares were traded during trading, an increase of 27% from the average daily volume of 38,817,242 shares. The stock had previously closed at $59.50.

The financial services provider reported $1.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.13 by $0.08. The business had revenue of $8.08 billion during the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a net margin of 16.78% and a return on equity of 11.49%. The firm’s quarterly revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.89 EPS.

Bank of America Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 5th were issued a $0.28 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a $1.12 annualized dividend and a dividend yield of 1.8%. Bank of America’s dividend payout ratio is currently 27.72%.

Key Bank of America News

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

• Positive Sentiment: Bank of America beat Q2 EPS estimates and reported broad-based revenue growth, with strength in net interest income, trading, and investment banking. Bank of America earnings report
• Positive Sentiment: Trading income and investment banking fees surged, reflecting increased market volatility and healthier deal activity, which could support near-term profits. Reuters coverage of BofA expansion
• Positive Sentiment: Management said the U.S. economy remains resilient and that the bank is seeing strong consumer spending and borrowing activity, which improves the earnings outlook. PYMNTS article
• Positive Sentiment: Jefferies maintained a Buy rating and a $75 price target, signaling continued analyst confidence after the earnings release. Jefferies rating update
• Neutral Sentiment: Several reports noted BAC’s stock had already reached or approached record highs, suggesting some of the earnings optimism may already be priced in. MSN market recap

Analyst Ratings Changes

A number of brokerages recently commented on BAC. Wells Fargo & Company lifted their price target on Bank of America from $65.00 to $67.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Citigroup upped their price objective on Bank of America from $62.00 to $66.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Jefferies Financial Group reaffirmed a “buy” rating on shares of Bank of America in a research report on Tuesday. JPMorgan Chase & Co. lifted their target price on Bank of America from $57.50 to $62.50 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Finally, UBS Group increased their price target on shares of Bank of America from $63.00 to $68.00 and gave the company a “buy” rating in a research report on Tuesday, July 7th. Twenty-one analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $62.19.

Insider Transactions at Bank of America

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $53.01, for a total value of $6,719,335.56. Following the sale, the insider directly owned 1,373,397 shares in the company, valued at $72,803,774.97. The trade was a 8.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.27% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. DecisionMap Wealth Management LLC boosted its position in Bank of America by 4.7% during the fourth 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 period. Money Concepts Capital Corp raised its position in shares of Bank of America by 3.8% in the fourth quarter. Money Concepts Capital Corp now owns 4,964 shares of the financial services provider’s stock valued at $273,000 after purchasing an additional 182 shares during the period. Holistic Financial Partners lifted its stake in shares of Bank of America by 2.4% during the 4th quarter. Holistic Financial Partners now owns 7,896 shares of the financial services provider’s stock valued at $434,000 after buying an additional 183 shares in the last quarter. Operose Advisors LLC lifted its stake in shares of Bank of America by 0.9% during the 4th quarter. Operose Advisors LLC now owns 20,409 shares of the financial services provider’s stock valued at $1,123,000 after buying an additional 185 shares in the last quarter. Finally, Asahi Life Asset Management CO. LTD. boosted 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 buying an additional 187 shares during the period. Institutional investors own 70.71% of the company’s stock.

Bank of America Stock Performance

The company has a market capitalization of $430.32 billion, a P/E ratio of 15.01, a P/E/G ratio of 1.00 and a beta of 1.17. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 1.18. The company’s fifty day moving average is $54.62 and its 200 day moving average is $52.98.

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.