Bank of America (NYSE:BAC) Shares Up 1.2% Following Dividend Announcement

Bank of America Corporation (NYSE:BAC) shares traded up 1.2% during trading on Friday following a dividend announcement from the company. The stock traded as high as $62.28 and last traded at $61.9960. 28,890,509 shares traded hands during mid-day trading, a decline of 25% from the average session volume of 38,681,586 shares. The stock had previously closed at $61.28.

The newly announced dividend which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a $0.32 dividend. 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 currently 25.69%.

Wall Street Analyst Weigh In

BAC has been the topic of several recent analyst reports. HSBC increased their target price on Bank of America from $55.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, April 16th. Truist Financial boosted their price target on Bank of America from $64.00 to $65.00 and gave the stock a “buy” rating in a research note on Wednesday, July 15th. Morgan Stanley upped their price target on Bank of America from $61.00 to $67.00 and gave the company an “overweight” rating in a report on Monday, June 29th. UBS Group increased their price objective on Bank of America from $63.00 to $68.00 and gave the company a “buy” rating in a research report on Tuesday, July 7th. Finally, Citigroup lifted their price objective on Bank of America from $62.00 to $66.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Twenty-one equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $63.77.

Bank of America Stock Performance

The firm has a market cap of $439.96 billion, a P/E ratio of 14.22, a P/E/G ratio of 0.99 and a beta of 1.17. 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 business’s 50-day simple moving average is $56.42 and its 200 day simple moving average is $53.36.

Bank of America (NYSE:BAC) last released its quarterly earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, beating the consensus estimate of $1.13 by $0.08. The firm had revenue of $8.08 billion for the quarter, compared to analysts’ expectations 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 was up 19.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.89 EPS. As a group, equities analysts predict that Bank of America Corporation will post 4.65 earnings per share for the current year.

Trending Headlines about Bank of America

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

• Positive Sentiment: Bank of America raised its quarterly dividend by 14% to $0.32 per share, a clear signal of strong capital generation and management’s commitment to shareholder returns. Bank of America hikes common stock dividend by 14%
• Positive Sentiment: The dividend boost was also highlighted in company announcements and market coverage, likely supporting sentiment that BAC’s balance sheet and earnings power remain solid. Bank of America Increases Common Stock Dividend 14% to 0.32 Per Share
• Positive Sentiment: Bank of America also continued to get attention for its investment research, including bullish calls on AI beneficiaries like Micron and Alphabet, which can reinforce the firm’s reputation and market visibility. Why BofA Thinks Micron Stock Could Be One of AI’s Biggest Long-Term Winners
• Neutral Sentiment: One report noted Bank of America’s well-known stock-market “sell signal” indicator is at its highest level since 2021, which may be seen as a cautionary macro signal rather than a direct BAC-specific issue. BofA’s famed sell signal for stocks is at its highest level since 2021
• Neutral Sentiment: Additional coverage on federal debt, inflation, and global bond weakness reflects the broader macro backdrop BAC operates in, but these items do not directly change the bank’s near-term fundamentals. Trump Called Himself the ‘King of Debt.’ Now Bank of America Says the U.S. Will Spend $2 Trillion More Than It Brings In This Year

Insiders Place Their Bets

In other Bank of America news, insider Geoffrey S. Greener sold 126,756 shares of the firm’s stock in a transaction dated 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 transaction, the insider directly owned 1,373,397 shares of the company’s stock, valued at approximately $72,803,774.97. This trade represents a 8.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On Bank of America

Several institutional investors have recently made changes to their positions in the business. Abound Financial LLC bought a new stake in Bank of America during the fourth quarter valued at approximately $26,000. Legacy Bridge LLC increased its holdings in Bank of America by 182.3% during the fourth quarter. Legacy Bridge LLC now owns 511 shares of the financial services provider’s stock valued at $28,000 after buying an additional 330 shares during the last quarter. Wiser Advisor Group LLC bought a new position in Bank of America in the third quarter worth approximately $27,000. CrossGen Wealth LLC bought a new position in Bank of America in the fourth quarter worth approximately $30,000. Finally, Joseph Group Capital Management purchased a new position in shares of Bank of America during the 4th quarter worth $32,000. Institutional investors own 70.71% of the company’s stock.

Bank of America Company Profile

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.