Bank of America (NYSE:BAC) Stock Gets Price Target Reduction from Truist Financial

Bank of America (NYSE:BAC) had its price objective decreased by Truist Financial from $62.00 to $58.00 in a research report sent to investors on Thursday morning,Benzinga reports. Truist Financial currently has a buy rating on the financial services provider’s stock.

Other research analysts have also issued reports about the company. Argus set a $70.00 price objective on Bank of America in a research report on Wednesday, July 15th. Evercore set a $62.00 price objective on Bank of America in a research note on Thursday, October 1st. HSBC started coverage on Bank of America in a research report on Monday, September 28th. They issued a “buy” rating and a $65.00 target price for the company. Rothschild & Co Redburn set a $72.00 target price on Bank of America in a research note on Tuesday, October 6th. Finally, Barclays lowered their target price on Bank of America from $72.00 to $68.00 and set an “overweight” rating for the company in a research note on Thursday. Twenty research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Bank of America has an average rating of “Moderate Buy” and a consensus target price of $62.52.

Bank of America Stock Performance

NYSE:BAC opened at $51.28 on Thursday. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 1.17. The firm has a market capitalization of $358.59 billion, a price-to-earnings ratio of 12.18, a PEG ratio of 0.83 and a beta of 1.21. The firm’s fifty day simple moving average is $59.05 and its 200 day simple moving average is $56.69. Bank of America has a twelve month low of $46.12 and a twelve month high of $65.22.

Bank of America (NYSE:BAC) last announced its quarterly earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share for the quarter, missing analysts’ consensus estimates of $1.10 by ($0.02). Bank of America had a return on equity of 12.15% and a net margin of 16.80%. The business had revenue of $29.96 billion for the quarter, compared to analysts’ expectations of $30.58 billion. During the same period last year, the company posted $1.06 earnings per share. The firm’s revenue for the quarter was up 3.2% on a year-over-year basis. As a group, equities research analysts expect that Bank of America will post 4.54 earnings per share for the current fiscal year.

Bank of America Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders 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 2.5%. Bank of America’s dividend payout ratio is presently 30.40%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Legal & General Group Plc acquired a new position in shares of Bank of America in the second quarter worth about $2,571,060,000. Deutsche Bank AG purchased a new position in Bank of America in the second quarter valued at about $2,359,172,000. Bank of New York Mellon Corp purchased a new position in Bank of America in the second quarter valued at about $2,313,953,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Bank of America in the second quarter valued at about $939,807,000. Finally, Canada Pension Plan Investment Board acquired a new stake in Bank of America during the 2nd quarter valued at approximately $916,398,000. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Bank of America

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

• Positive Sentiment: Analyst support and potential earnings recovery: Baird upgraded BAC to Outperform with a $62 price target, while other analysts maintained Buy or Outperform ratings despite reducing targets. Management also projected at least 8% net interest income growth in 2027, supported by loan and deposit expansion. Baird Upgrades Bank of America Stock Despite a Soft Quarter
• Positive Sentiment: Regulatory remediation is progressing: Bank of America said it has completed substantial work required under a consent order, potentially helping reduce longer-term compliance uncertainty. The bank’s CEO also described the U.S. economy as resilient and growing. Bank of America says it has completed a lot of work on consent order
• Neutral Sentiment: Preferred dividends declared: The board authorized regular cash dividends on multiple preferred-stock series, payable in November and December. The announcement supports the bank’s capital-distribution profile but does not represent a new increase in BAC common-stock dividends. Bank of America Declares Preferred Stock Dividends
• Negative Sentiment: Q3 earnings missed expectations: BAC reported adjusted earnings of $1.08 per share versus a $1.10 consensus, while revenue also fell short. A $1.2 billion anti-money-laundering and sanctions penalty reduced earnings, and expenses grew faster than revenue; weaker fixed-income trading and settlement costs added pressure. Bank of America Stock Sell-Off Looks Like a Buying Opportunity
• Negative Sentiment: Compliance and litigation overhang: Senator Elizabeth Warren criticized the penalty as insufficient, while several law firms announced investigations into potential securities claims and fiduciary-duty issues. These developments could increase legal costs and prolong reputational concerns. Rosen Law Firm Investigation

About Bank of America

Bank of America Corporation (NYSE: BAC) is a diversified financial services company headquartered in Charlotte, North Carolina. It provides banking, lending, investment, payments and financial management services to consumers, businesses, institutional investors and governments.

The company’s consumer banking operations offer checking and savings accounts, credit cards, mortgages, home equity lending, auto loans and other consumer financial products. Through Merrill, Bank of America provides wealth management, investment advisory, brokerage and retirement services.