Bank of America (NYSE:BAC) Research Coverage Started at TD Cowen

TD Cowen began coverage on shares of Bank of America (NYSE:BAC) in a research note published on Thursday morning, Marketbeat Ratings reports. The firm issued a hold rating and a $60.00 target price on the financial services provider’s stock.

Other research analysts have also recently issued reports about the stock. Truist Financial reduced their price objective on shares of Bank of America from $65.00 to $62.00 and set a “buy” rating for the company in a report on Thursday, October 1st. Weiss Ratings restated a “buy (b)” rating on shares of Bank of America in a report on Tuesday, July 21st. HSBC started coverage on shares of Bank of America in a research report on Monday, September 28th. They issued a “buy” rating and a $65.00 price target on the stock. Evercore set a $62.00 price target on Bank of America in a research note on Thursday, October 1st. Finally, Jefferies Financial Group decreased their price objective on Bank of America from $75.00 to $70.00 and set a “buy” rating for the company in a report on Thursday, September 24th. Nineteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $64.22.

Bank of America Price Performance

Shares of BAC opened at $54.27 on Thursday. Bank of America has a 12-month low of $46.12 and a 12-month high of $65.22. The business’s fifty day moving average is $60.09 and its 200 day moving average is $56.52. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. The stock has a market cap of $379.49 billion, a P/E ratio of 12.45, a P/E/G ratio of 0.87 and a beta of 1.21.

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 (EPS) for the quarter, beating the consensus estimate of $1.13 by $0.08. The business had revenue of $31.56 billion during the quarter, compared to the consensus estimate of $30.78 billion. Bank of America had a net margin of 17.56% and a return on equity of 12.20%. Bank of America’s revenue was up 19.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.89 EPS. Sell-side analysts anticipate that Bank of America will post 4.61 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 4th were given a dividend of $0.32 per share. The ex-dividend date of this dividend was Friday, September 4th. This is an increase from Bank of America’s previous quarterly dividend of $0.28. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.4%. Bank of America’s payout ratio is 29.36%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Legal & General Group Plc purchased a new position in shares of Bank of America in the 2nd quarter worth approximately $2,571,060,000. Deutsche Bank AG purchased a new stake in shares of Bank of America during the second quarter valued at approximately $2,359,172,000. Bank of New York Mellon Corp bought a new stake in Bank of America during the second quarter worth $2,313,953,000. Amundi lifted its holdings in Bank of America by 12.5% during the first quarter. Amundi now owns 42,385,115 shares of the financial services provider’s stock worth $2,066,274,000 after acquiring an additional 4,721,969 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in Bank of America by 1.8% in the first quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider’s stock worth $1,517,599,000 after purchasing an additional 561,413 shares during the last quarter. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Bank of America News Summary

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

• Positive Sentiment: Analysts expect higher net interest income and solid trading performance to support third-quarter results. A recent analysis also argues that a Federal Reserve policy shift could create additional NII upside for Bank of America. Bank of America: Fed Policy Shift Creates NII Upside
• Positive Sentiment: TD Cowen began coverage with a $60 price target, implying potential upside from recent trading levels, although it assigned a Hold rating. TD Cowen coverage of Bank of America
• Positive Sentiment: Bank of America’s continued use of artificial intelligence to personalize customer service and improve operating efficiency could provide longer-term competitive benefits. How Bank of America is using AI
• Neutral Sentiment: Wall Street’s third-quarter estimates point to a mixed report: stronger NII and trading may be offset by weaker investment-banking fees and higher credit risks. Investors are focused on whether management can maintain earnings momentum as year-over-year EPS growth is expected to slow sharply from the prior period. BAC shares ahead of Q3 earnings
• Neutral Sentiment: The appointment of Jeff Crabtree as president of the Sarasota/Manatee region is a routine leadership change with limited near-term earnings impact. Bank of America names Jeff Crabtree president
• Negative Sentiment: Bank of America agreed to a $39 million Merrill cash-sweep settlement, creating a modest legal and regulatory expense. Merrill cash sweep settlement
• Negative Sentiment: Chief equity strategist Michael Hartnett said investors are keeping substantial cash in money-market funds until sustained Fed rate cuts begin, signaling cautious risk appetite that could limit near-term support for bank shares. Investors need sustained Fed cuts

About Bank of America

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.